Carriers eye equipment surcharge

With a shortage of available containers in Asia, at least two leading carriers are understood by IFW to be attempting to introduce equipment repositioning surcharges. 

Shippers are already facing substantial peak season surcharges as capacity tightens on both the Asia-Europe and transpacific trades.

Joerg Twachtmann, Panalpina’s Global Head of Product & Procurement Ocean FCL, said: “There are shortages everywhere, especially in northern China, of 20ft boxes. With slow-steaming, there are more containers on the water on both main trades. 

“Carriers also stopped investing in boxes in 2009, and all this will continue to impact the flow of cargo. It also helps the carriers control supply.” 

He said capacity on Asia-Europe lanes was not as tight as on the “chock-a-block” transpacific, but both trades were suffering equipment bottlenecks. 

Shippers must improve supply chain planning before shipping’s peak season or face premium rates on ad hoc shipments, according to Twachtmann. 

“We have to forecast as much as possible,” he told IFW. “Large spot orders will incur extra costs and there will be less flexibility because of slot and equipment shortages on Europe-Asia and, particularly, transpacific trades. 

“There will be limited flexibility over the peak season.” 

Many shippers have taken time adjusting to slower transit times and capacity shortages, despite warnings from forwarders, said Twachtmann. 

“A lot of customers did not take it seriously when carriers started managing capacity.They weren’t expecting the impact it has had,” he said. “They weren’t convinced carriers could implement this across so many different companies.” 

But, he added, although most shippers would like faster transit times, they would not be willing to pay above-market rates for them. 

“That’s one reason why slow-steaming will continue,” he explained. “Carriers will try to have a steering element to regulate supply and demand better from their perspective.”