Ho: Shippers will recall opportunistic lines

Ho: Shippers will recall opportunistic lines

Ho

   Sunny Ho, executive director of the Hong Kong Shippers' Council, on Monday blasted ocean carriers that are charging shippers a premium to move goods out of Asia during a pre-Chinese New Year rush.
   Reports in recent weeks have suggested thousands of TEUs of cargo have been held back on the docks of some of Asia's biggest ports, in part due to the concerted effort by carriers to withdraw excess capacity from the transpacific and Far East/Europe trades.
   When demand unexpectedly spiked in January, that left carriers in the strange position of having the upper hand. Shippers and intermediaries claim certain carriers have held shippers ransom, demanding peak season surcharges or other accessorial fees be paid in order for their boxes to get priority.
   Ho, in an interview posted on the shipper advocate Web site The Shippers' Voice said when capacity exceeds demand again, shippers will remember which carriers took advantage of the current situation.
   Shippers will 'regain the upper hand with the choice of shipping lines and competitive rates,' Ho said. 'After all, there is much oversupply in the market. If freight stays at the current high level, it is sure that some companies will charter those ships that are currently lying idle and start running new services, minding also that there is an ample supply of idle empty containers too. The entry barrier for shipping is low and the current freight level is very attractive.'

Traill

   Andrew Traill, managing partner of Voice of the Shipper LLP, and director of The Shippers' Voice, said the opportunistic actions of carriers is symptomatic of a familiar cycle.
   'It is a sorry state of affairs that we remain in this boom-and-bust state, with rates soaring one day and falling another,' he said. 'Shippers cannot go on like this: they would be far better off with some stability. Carriers too, would be better off with more stability and sustainable rates. It must be time for everyone to rethink the business model; look at the service levels and standards required, look at what is needed to deliver them and cost them fairly. Ensure the price is sustainable both for the carrier and for the market: set a contract and stick to it. Isn't this a good place to start from?'