07 Desember 2020

[071220.EN.BIZ] Great Time For Carriers Leaves Shippers With Worst Pricing Ever

 

CORPORATE consolidation, a declining order books and skillful carrier capacity management has put shippers in the most disadvantageous pricing position ever, reports IHS Media.

"I believe the leverage is now in the hands of the carriers because they have clearly demonstrated their ability to exercise capacity discipline," said New York Shipping Exchange CEO Gordon Downes.

"Barring some form of regulatory intervention, I can't see any reason why the carriers would go back," he said.

Said forwarding major Apex Maritime vice president Kurt McElroy: "The carriers have managed capacity very effectively through the pandemic. They all look at the profitability they are seeing right now and are saying, 'Why should we go back to the previous model?'"

Said forwarder consultant Jon Monroe: "The question in my mind is what will the carriers do if we do not get a dip in volumes before the new contract season? Import costs have gone through the roof and everyone is looking for a plan B. What are the options? There is no plan B to this situation."

As Otto Schacht, head of sea freight for forwarder Kuehne + Nagel, said, "The situation will definitely not improve before Chinese New Year. Importers should prepare accordingly."

Source : HKSG.

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