English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

New ocean carrier alliances to “shake things up”?

GENEVA/BRUSSELS: March 22, 2017. The impending operation of three ocean box alliances on April 01 has prompted fears of capacity constraints and rising prices according to FIATA and CLECAT, two organizations representing the interests of over one million forwarders and logisticians worldwide.

In a review of the services provided by 2M, Ocean Alliance and THE Alliance, Drewry Maritime said that while there is plenty of coverage and overlap between the busiest trading regions, it acknowledged there are "some areas with limited competition...which will hopefully change in time".

CLECAT and FIATA claim this isn't happening as maritime capacity to Asia has "decreased dramatically" despite a rise in demand, with shippers having to wait for weeks for availability.

"We witness an increase of vessels being taken out of circulation, which in our opinion contradicts the current increase in demand," said Jens Roemer, chairman of the FIATA Working Group Sea. "On some routes shipping lines only accept bookings for sailings as far away as in four weeks' time. Furthermore, it has been extremely difficult for the industry to deal with blank sailings."

MSCBoth organizations also question the application and justification of a 'Peak Season Surcharge' on existing contracts: "Surcharges by definition relate to sudden changes in variable costs incurred by carriers, such as bunker prices, port congestion and currency fluctuations. FIATA and CLECAT question whether such changes in the variable external costs have actually occurred in this situation."

Robert Keen, chairman of FIATA's Multimodal Transport Institute added it was time freight forwarders stopped accepting at face value what he called "opaque and unjustified surcharges".

"In the past, we have seen Administration Fees, Peak Season Surcharges, or ISPS-add on surcharges. Of late, we have had examples of container cleaning fees and container sealing fees, without any evidence of the expense actually being incurred," he claimed.

Carlos Hernández, co-founder of Miami-based online forwarder iContainers, also thinks the new shipping alliances will lead to a shortage of options for freight forwarders.

"Given the sharing of vessels and routes, this basically translates into multiple carriers having the exact same schedule. Instead of having seven or eight carriers offering a sailing of their own, we will perhaps only be getting three," he explained.

"Generally, this means having fewer alternatives when customers need to meet certain deadlines, which can be rather frustrating."

One capacity option for iContainers and its peers on trades between the Americas is a greater reliance on small niche carriers: "Some of them may hope to increase market shares or possibly even add to their service portfolios - depending on the services the big alliances are offering in the area," said Hernández.

Commenting on the impact of the new alliances on ocean trades he added: "Hopefully, this will shake things up a little and we can see a healthier industry again. One where good service forms an integral part of shipping lines' attraction and not just a component of an ocean freight quote."

Meanwhile the lack of capacity is causing a rise in airfreight demand according to IAG Cargo Commercial director David Shepherd: "This spike in demand comes at a time when constraints on sea freight capacity across Asia Pacific routes have been widely reported. While this boost is likely to deliver a short term positive impact, we believe our network makes us well placed to demonstrate the long term value air cargo can offer to forwarders."

IAG Cargo said its cargo volumes from Europe to Asia have risen 23 percent in the first two months of 2017 compared to the same period a year ago.

News

Written on 20/10/2017, 20:31
cma-cgm-members-add-intra-asia-capacitySINGAPORE: October 20, 2017. CMA CGM Group subsidiaries APL and Cheng Lie Navigation (CNC) have launched a new Korea China Straits (KCS) box service...
Written on 19/10/2017, 21:13
britain-requires-new-aviation-strategy-with-or-without-brexitLONDON: October 18, 2017. The Manchester Airports Group (MAG), owner of Manchester, London Stansted and the airfreight-focused East Midlands Airport, has...
Written on 18/10/2017, 20:06
airlines-increase-support-for-endangered-speciesDOHA: October 18, 2017. Qatar Airways has joined Airlines for America, Delta, Emirates, IATA, Kenya Airways and United in the USAID Reducing Opportunities...
Written on 17/10/2017, 20:05
britain-should-remain-in-the-eu-says-oecdLONDON: October 17, 2017. In its latest survey of the UK economy the OECD says the positive impact on growth "would be significant should Britain remain...
Written on 15/10/2017, 19:28
africa-gdp-growth-of-3-7-percent-in-2018ABIDJAN, Côte d'Ivoire: October 12, 2017. According to a new forecast from the African Development Bank (ADB), the continent's GDP is expected to grow 3.0...
Written on 13/10/2017, 16:16
biofuels-no-alternative-to-hydrocarbons-claimLONDON: October 12, 2017. As the U.N. International Civil Aviation Organisation (ICAO) held its second conference on alternative aviation fuels this week,...
Written on 11/10/2017, 19:41
delta-pre-tax-hit-by-hurricaneATLANTA: October 11, 2017. Delta Air Lines has reported a 5.5 percent increase in third quarter 2017 (Q3) revenue to US$11.06 billion and a net profit of...
Written on 10/10/2017, 20:53
lebanon-gets-new-access-to-export-marketsTRIPOLI, Lebanon: October 10, 2017. CMA CGM has added Tripoli to its Beirut, Lebanon call on a weekly basis in a bid to link exporters in North Lebanon to...
Written on 10/10/2017, 17:34
new-russian-arrival-in-hong-kongHONG KONG: October 10, 2017. Moscow-based carrier Aviastar-Tu has begun flying a Tu-204C freighter from Novosibirsk to Hong Kong on behalf of Russia...
Written on 09/10/2017, 18:20
jetblue-launches-aid-program-for-puerto-ricoNEW YORK: October 08, 2017. JetBlue, which normally operates 53 daily flights from three airports in Puerto Rico to the U.S Mainland, has launched a...
Written on 06/10/2017, 20:34
puerto-rico-begins-to-restore-essential-servicesSAN JUAN, PR: October 06, 2017. The American Maritime Partnership (AMP), representing 450 companies specializing in U.S. cabotage routes, says its members...
Written on 05/10/2017, 22:10
saudi-arabia-tops-equestrian-event-at-asian-gamesASHGABAT, Turkmenistan: October 03, 2017. President of Turkmenistan Gurbanguly Berdimuhamedov brought the 5th Asian Indoor and Martial Arts Games in...
Written on 28/09/2017, 19:43
jd-com-to-deploy-one-million-dronesBEIJING: September 25, 2017. JD X, the innovation lab for e-commerce company JD.com, has partnered with U.S. gaming technology company NVIDIA to add AI to...
Written on 28/09/2017, 18:29
port-of-rotterdam-to-develop-blockchain-solutionsROTTERDAM: September 25, 2017. The Port of Rotterdam Authority and the Rotterdam Municipality have launched 'BlockLab' to develop applications and...
Written on 27/09/2017, 15:48
alibaba-to-invest-us-16-billion-in-logisticsHANGZHOU: September 26, 2017. The Alibaba Group is spending US$807 million to raise its stake in affiliate Cainiao Smart Logistics Network from 47...
Written on 26/09/2017, 19:30
technology-tops-most-valuable-brand-listNEW YORK: September 25, 2017. Apple, Google and Microsoft are the world's three most valuable brands according to Interbrand's latest ranking of 100 best...
Written on 26/09/2017, 17:55
unilever-remains-top-of-european-supply-chainsSTAMFORD, CT: September 25, 2017. Gartner's latest European Supply Chain Top 15 ranks Unilever No.1 for the second year running with Inditex taking second...
Written on 22/09/2017, 18:52
air-and-sea-aid-response-to-irma-and-mariaTORTOLA: September 22, 2017. With Hurricane Maria causing structural damage and power outages as it passes the Turks & Caicos islands, Royal Navy...
Written on 22/09/2017, 14:44
turkish-airlines-to-order-40-dreamlinersNEW YORK: September 21, 2017. Boeing and the Turkish government plan to develop Turkey's aerospace industry with the launch of a National Aerospace...
Written on 21/09/2017, 21:28
fedex-q1-results-hit-by-tnt-cyberattackMEMPHIS/MIAMI: September 20, 2017. FedEx Corporation has reported adjusted first quarter (Q1) revenue of US$15.3 billion, up from US$14.7 billion...

- powered by Quickchilli.com -