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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