Cargo Business News

February 2013

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18 S The shipper-carrier It���s ever a tug-o ��� While the supply/demand balance continues to drive rates, actual rate levels in the Pacific remain at or near 2008-09 recessionary levels and carriers need to be mindful of this heading into the 2013 contract-signing season. Brian Conrad, executive administrator, Transpacific Stabilization Agreement ��� Go to any freight sector gathering and the talk of shipper-carrier partnership flows thick. And, indeed, many exporters, importers and shipping lines work extremely hard at helping each other prosper. But some don���t, a number of executives on either side told Cargo Business News. Underlying virtually all shipper-carrier relationships is a constant source of tension: rate levels. Each side recognizes the other���s need to operate profitably, which means keeping costs down while maximizing revenues to the extent that the market place permits. Market outlook: overcapacity to persist Executives with carriers active in virtually every major trade say overcapacity is likely to persist, putting downward pressure on shipping prices, this year at least. ���Based on the economic and industry outlook, globally the market will still be oversupplied as demand growth remains slow. However, regionally, such as trans-Pacific, intra-Americas or intra-Asia trade lanes, better economic performances are making them more promising,��� said C. J. Wang, chairman of Evergreen Marine Corp. (Taiwan). Brian Conrad, executive administrator of a carriers��� group February 2013

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