Shipper/carrier collaboration has never been more crucial for an industry under pressure from the pandemic, ongoing international trade tensions and general, global economic disruption. This year, our maritime experts send out a call for more transparency and ongoing communication between both parties as we—a collective whole—look to kick start the world’s commerce.
Joining us in our 2020 Ocean Cargo Roundtable are Philip Damas, head of Drewry’s Supply Chain Advisors; Paul Bingham, director of transportation freight consulting at IHS Markit; and Dan Smith, principal at The Tioga Group, a freight transportation consultancy.
Logistics Management (LM): Will carriers be able to sustain their rate structures amid a high level of blank sailings and volume declines?
Philip Damas: The short answer is no. The increase in rates, especially in the eastbound Asia-U.S. West Coast trade, was a result of large-scale capacity reductions. Faced with an unprecedented downturn, carriers had little alternative but to remove capacity from the market. In the case of the trans-Pacific, however, carriers clearly overestimated how much capacity needed to come out and removed too much capacity, resulting in “roll overs” and in large increases in spot freight rates for many of their shippers.
As an experienced ocean freight forwarder, Ocean World Cargo is your logistics partner. Whether you’re shipping full container loads or less than container loads, our full suite of ocean shipping and logistics options is at your disposal. Our vast network of industry contacts and freight forwarder expertise enable us to provide customized logistics solutions to meet your needs. We streamline your shipping process, getting your product into your customer’s hands in the fastest and most-efficient way possible.