SHIPPERS SHOULD stop haggling over oceanfreight rates and focus their attention on the whole logistics chain.
International shipping lines quoted in Lloyd's Freight assert that because trading has become such a global entity, it's more important that the trader's goods reach their destination on time and in best condition. Rate discounts often come from not-so-reliable, or less well capitalised shipping operations, where timely, safe arrival of goods is more in the lap of the gods than in any sort of guarantee, they assert.
In the recent years of ship-hold capacity being over-supplied, it has been a buyer's market. Lines have cut rates - and each others' financial throats - in attempts to get into and stay on certain trade routes.
But the rates are firming (and rapidly) because trade is becoming increasingly globalised, and on many trades demand is now beginning to exceed supply.
The question that arises: In such a situation would you be prepared to pay premium rates just to guarantee getting space on a ship?
Either that or face your cargo possibly being stored quayside, and rolled over to the next suitable voyage.
But the lines which charge more all offer more. And in today's JIT (just in time) door-to-door conception of logistics, a neatly-tailored, high-speed guaranteed transit time distribution package is often considered more important than shaving off those few cents/unit in cost.
You get what you pay for, according to the shipping lines. You can either prioritise price or peace of mind.
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