OOCL: Westbound Atlantic shippers seek space guarantees

OOCL: Westbound Atlantic shippers seek space guarantees ''Transatlantic shippers are increasingly concerned about potential shortages of ship capacity in the westbound trade and have started to seek space guarantees for the forthcoming peak season, a senior executive of OOCL said.
''''Courtenay Allen, director, transatlantic trade at OOCL (Europe) Ltd., said a few shippers have contacted his company and volunteered to pay higher westbound freight rates in return for guarantees of space availability.
''''”It’s the first time I’ve seen this,” said Allen, who has worked in the transatlantic liner trade for more than 20 years. “I was totally surprised.”
''''Allen said that while this has concerned a handful of shippers so far, the westbound Atlantic trade is booming overall. The peak season will hit the transatlantic westbound trade in the fourth quarter and vessel capacity is expected to be scarce.
''''OOCL predicts a 10-percent jump in westbound cargo volumes this year, compared to an estimated trade-wide capacity increase of 3 to 4 percent.
''''Allen said westbound freight rates have already increased by some 20 percent in the last 12 months and ships are sailing fully loaded, westbound.
''''In the fourth quarter, there are going to be “pressure points” on capacity, he said.
''''By contrast, the eastbound transatlantic trade is seeing small or no rate increases, as trade volumes are less buoyant.
''''According to OOCL, carriers are still losing money on the Atlantic route, following the rate falls of the last few years. Thanks to cost cuts and rate increases, OOCL expects to see its transatlantic service return to profitability in 2001.