'Profit now carriers' driving force'

Deepsea carriers are now driven by profitability rather than market share, according to consultant Drewry. 

In its Container Forecaster report, Drewry said the shift in mentality was a positive sign for the future of the industry, as healthy ocean carriers are required for an efficient global supply chain. 

Report Editor Neil Dekker said: “Slow-steaming strategies are here to stay, as they remain an efficient way to absorb capacity and reduce costs. 

“Furthermore, by restricting supply more in line with demand, carriers appear to have finally learned that they have the ability to drastically improve their revenue streams. 

“The old days of the volume shipper being seen as a VIP account appear to have gone, as many shippers have told us stories in recent months about lack of space and short shipments. 

“In this new environment, carriers are taking the opportunity to push up freight rates via a succession of GRIs and peak season, and now additional equipment, surcharges which shippers have little option but to pay.” 

Drewry said this could create antagonism in the short-term, but it may pave the way for successful shipper/carrier partnerships where shipment information and forecasting information is shared. 

Carriers are also trying to introduce different levels of service in order to move away from the perception that ocean transport is a commodity. One example is Maersk Line’s decision to introduce a priority product. 

“Essentially, shippers will be paying a premium for guaranteed shipments, space and equipment,” Drewry said. 

But Dekker added: “There needs to be a quid pro quo, however, and no longer should ocean carriers send out GRI notices stating that rate increases are required in order to continue to provide ‘consistent high levels of service’. 

“Many shippers have had their freight transport bills doubled in recent months and are still not managing to ship their cargo out of Asia.”