Customer-carrier relations

Carriers bullish as shipping contract talks loom: ‘it won’t be a buyer’s market’

European shippers are finding it increasingly difficult to begin annual contract negotiations with container shipping lines.
November is the traditional start of the annual contract negotiating season on the Asia-Europe trade, with deals mostly signed by the end of the year.
However, after the astonishing gains on a spot market which grew another 9% this week, it appears the relationship between carriers and their customers could be fundamentally different in 2021.
Anecdotal reports …

The post Ca...

https://theloadstar.com/carriers-bullish-as-shipping-contract-talks-loom-it-wont-be-a-buyers-market/

Carriers are using digitalisation to marginalise us, say forwarders

More front-line skirmishes between container shipping lines and freight forwarders over access to shippers: This week, The Loadstar reported that senior forwarders were becomingly increasingly incensed at the way that carriers had transitioned from being their suppliers to their competitors, and this report in Container News appears to show that this changing dynamic is more prevalent than ever. “Reports from freight forwarders claim that Cosco, CMA CGM, Maersk and Hapag-Lloyd …

The post Carriers...

https://theloadstar.com/carriers-are-using-digitalisation-to-marginalise-us-say-forwarders/

‘Volatile’ box trade has shifted ‘from a demand crisis to an operational crisis’

The era of low-cost ocean freight could be over as volatility and exception handling become the new battleground for forwarders and carriers.
According to Otto Schacht, Kuehne + Nagel’s executive vice president of sea logistics, this year’s supply chain shocks and volatility mean container shipping is moving away from being largely cost-focused.
For example, he said, many customers were expecting a 50%-60% drop in volumes in April and May, but demand came …

The post ‘Volatile’ box trade has...

https://theloadstar.com/volatile-box-trade-has-shifted-from-a-demand-crisis-to-an-operational-crisis/

Complaints spark US FMC probe into shipping line bill of lading issues

Maritime regulator the Federal Maritime Commission (FMC) yesterday launched a probe into claims that shipping lines serving the US “may be attempting to hold companies financially responsible for transport services they did not contract for and may not legally be required to pay”.
The FMC issued a notice of inquiry (NOI) after receiving complaints from industry associations representing freight forwarders and 3PLs, hauliers and customs brokers that their members had been approached …

The post Com...

https://theloadstar.com/complaints-spark-us-fmc-probe-into-shipping-line-bill-of-lading-issues/

NYSHEX raises new funds to progress harmony between shippers and carriers

The New York Shipping Exchange (NYSHEX) has set its sights on providing more technology to shippers, with an initial focus on retailers, after raising $13.5m in new capital.
Investment fund NewRoad Capital led the funding round and has joined the list of NYSHEX shareholders.
NYSHEX provides the liner industry with a “simplified and standardised over-the-counter exchange for entering enforceable freight contracts”, which shippers and NVOCCs can use free after receiving accreditation – …

The post N...

https://theloadstar.com/nyshex-raises-new-funds-to-progress-harmony-between-shippers-and-carriers/

Shippers face ‘significant’ rate hikes as new container contract talks loom

Having succeeded in aggressively raising container spot rates during the pandemic, ocean carriers are now laying the foundations for a substantial uplift in annual contract rates.
Shippers and carriers traditionally start negotiations for the Asia-Europe trade in October and November, and for Asia to the US in February and March.
Maersk, for example, reckons around half of its business still comes from annual contracts with BCO and NVOCC shippers, but given the …

The post Shippers face...

https://theloadstar.com/shippers-face-significant-rate-hikes-as-new-container-contract-talks-loom/

Flexport claims its data advantage can provide ‘opportunity in chaos’

Flexport claims it has won business during the tariff war and Covid-19 crisis by making better use of data than larger rivals.
“We like to say there’s opportunity in chaos,” said Sanne Manders, the forwarder’s chief operating officer, “because when there’s chaos your competitors are paralysed.
“They are larger, bureaucratic organisations, not typically built on modern technology, and they don’t have all the data at their fingertips. So they have to start redesigning …

The post Flexport claims...

https://theloadstar.com/flexport-claims-its-data-advantage-can-provide-opportunity-in-chaos/

Shrinking contract rates pushing ocean carriers towards the spot market

Declining long-term contract rates on major tradelanes may be a concern for ocean carriers, but the bullish short-term market is proving the “silver lining” that could shift their focus towards the spot market.
Indeed, some carriers The Loadstar spoke to recently suggested the future of large-scale annual volume contracts may be limited to a ‘new normal’ of rolling three-month deals, renegotiated in the light of increasingly volatile market changes.
Oslo-based Xeneta’s XSI contract rate …

The...

https://theloadstar.com/shrinking-contract-rates-pushing-ocean-carriers-towards-the-spot-market/

Shipping lines tighten up credit terms for ‘financially risky’ NVOCCs

Ocean carriers are tightening up their credit terms with thousands of smaller NVOCCs [non-vessel-owning common carriers] due to mounting fears that many could go bust due to Covid-19.
Since the banning of shipping conferences, when credit indiscipline was considered an internal fineable breach of the terms of the rate-setting cartels, many carriers have granted generous credit facilities as an incentive to attract customers.
Indeed, before its collapse in August 2016, Hanjin Shipping …

The post S...

https://theloadstar.com/shipping-lines-tighten-up-credit-terms-for-financially-risky-nvoccs/

How to take the hard work out of calculating demurrage and detention charges

Shipper fury at demurrage and detention (D&D) charges at levied by carriers serving US ports suddenly became a lot more understandable today.
According to new research from online container logistics platform Container xChange, there are huge variations in the levels of D&D charges around the world – not only between the major ports, but between different carriers in any given port.
The research shows that D&D fees in Long Beach and Los …

The post How to take the hard work out of calculating...

https://theloadstar.com/how-to-take-the-hard-work-out-of-calculating-demurrage-and-detention-charges/

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