IMPORTANT - NEWS

In light of the tight capacity on the Asia-Europe trade, shippers and forwarders are being advised to work more closely with carriers this year to secure space on ships.

Philip Damas of industry consultant Drewry said 2010 would be characterised by heavy competition for space because carriers had removed capacity.

He expected this trend to continue at least until summer, pointing out that carriers had so far been disciplined in managing their capacity.

Drewry said shippers and forwarders should work actively with carriers.

"In particular that means that they need to work more closely with them to provide better volume forecasts," said Damas.

"Shippers can help the carriers become more efficient by communicating how much capacity they will need by the week and telling them if there are any deviations. This will help ensure that every slot is used as planned.
"The carriers will treat their customers very differently this year, depending on whether they are reliable customers or whether they just shop around at the last minute."

Damas also felt that shippers would be more selective when choosing carriers, because of the precarious financial position some find themselves in.

Lines like APL and Maersk would benefit from this as they are perceived as being more secure because of the strength of their parent companies.
In: IFW