LETTER: Slow steaming’s potential air cargo boon

   During the depths of the Great Recession four years ago, shipping lines introduced “slow steaming” on almost all global trade lanes. Their reason —  to save on fuel costs which would help reduce their huge losses. Customers complained loudly that reducing ship speeds and lengthening transit times drove up their inventory costs. For many, it also meant delays in carrying out sales and marketing programs. With lines marching in lockstep on this issue, customers could do little but gripe. Liner salespeople tried to soothe customer complaints with the assurance that slow steaming was only a “temporary measure” with normal schedules returning once the recession ended and red ink would turn to black.

Keeling

   Four years later, what’s happening? The global economy, with the exception of Europe, is on the upswing. Shouldn’t slow steaming disappear with greater shipping volume on almost all trade lanes? Hardly. Slow steaming is alive and well. So much so that shipping lines from the Maersks of the world to the smallest coastal carriers are sailing in the opposite direction. They now are introducing “super” slow steaming and even “super-super” to save on bunker fuel. Adding insult to injury for shippers, they are piling on fuel surcharges. It seems that stronger economic growth is eluding the lines’ ability to make a profit.
   Why should we in the air freight business care about slow steaming? Because it may mean an opportunity to shift business from sea to air. We should become awake to the fact that our ocean cousins’ 14,000-TEU containerships are sailing at speeds not much greater than the fabled clipper ships of 150 years ago.  While most ocean shippers will not switch to air because of higher rates, there are any number of companies in time-sensitive industries like electronics, fashion, and toys with their “hot” products requiring fast, precise deliveries if sales are not to be lost. It’s up to our industry to seek out these companies, find them and convince them to convert to air.
    
Julian Keeling
Founder and CEO,
Consolidators International, Inc.,
Los Angeles