Container shipping - how bad is it really for the carriers?

Will the industry do what is needed to return to a more sustainable situation governed by common business sense?
 
If we take the outside view on the container carrier industry and its players using the Z score index to assess financial risk, the picture is grim.

Should we be worried about the carriers’ financial stress?
 
As a shipper you need to think long and hard on what will benefit you the most in the long-term. Who can you trust to continue existing and how can you mitigate your risk exposure?
 
Take the time to understand how the services you plan to use are operated on your key trades. Make sure that your mix of carriers are not on the same service, share the same vessels or do slot sharing.
 
You will find that dual sourcing in container shipping is not that easy to find once all aspects of carrier co-operations are investigated. But, it is the only way to ensure you that at least you have one working solution. It is the price you pay for the low freight levels you come to expect. Perhaps it is time to finally factor in total cost of container shipping to realise that low price does not equal low cost. 

Fredrik Nergell
Fredrik is head of freight management at TenderEasy, with strong negotiation skills and experience from both seller and buyer side of transport procurement. Connect with Fredrik on Linkedin or twitter.

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