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
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
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
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 www.cargobusinessnews.com