By Chris Barnard, Vice President – Projects & Market Development
Any company that uses ocean freight needs to know what has happened to the container shipping market in recent years. The big news is that weak demand and over capacity forced Hanjin Shipping Co, South Korea's largest ocean carrier, into bankruptcy. Other major shipping lines are trying to restore the supply/demand balance by scrapping vessels or merging with competitors.
The remaining shipping lines have implemented a strength-in-numbers strategy that has led to the formation of three alliances:
The three alliances control just over 75 percent of global container capacity and almost 100 percent of
Another area of concern is declining service levels, a direct result of cost cutting and efficiency measures being adopted by virtually all shipping companies. Simply put, fewer ships are visiting fewer ports, which means ocean freight will move slower than it did when there were more shipping lines – and more competition to get bookings.
We can help you adapt by:
See what we can do for you by requesting a SMART Freight Review, a free, no obligation review of your freight spending that could help you save thousands of dollars – or more.
Tip #48 – Know what type of insurance is available – and what's best for your business
An open policy is typically for companies that have a regular frequency of goods in transit.