Comments on: Trans-Pacific Eastbound ocean rates on the decline http://www.3plwire.com/2008/12/09/trans-pacific-eastbound-ocean-rates-on-the-decline/ Thu, 26 Jan 2012 23:18:27 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: Cargo volumes cause operators to park equipment | Third Party Logistics News - 3PLwire http://www.3plwire.com/2008/12/09/trans-pacific-eastbound-ocean-rates-on-the-decline/comment-page-1/#comment-121931 Cargo volumes cause operators to park equipment | Third Party Logistics News - 3PLwire Tue, 16 Dec 2008 04:12:09 +0000 http://www.3plwire.com/?p=1665#comment-121931 [...] economic environment. Last week I posted on the difficulties many steamship lines are facing and free fall in ocean imports rates into the U.S. According to the Aircargonews article, ocean carriers are also making the decision to [...] [...] economic environment. Last week I posted on the difficulties many steamship lines are facing and free fall in ocean imports rates into the U.S. According to the Aircargonews article, ocean carriers are also making the decision to [...]

]]> By: SwizStick http://www.3plwire.com/2008/12/09/trans-pacific-eastbound-ocean-rates-on-the-decline/comment-page-1/#comment-121652 SwizStick Wed, 10 Dec 2008 01:49:05 +0000 http://www.3plwire.com/?p=1665#comment-121652 The ocean carriers are in for some seriously tough times. You have a perfect storm brewing of the following components: 1. Lots of excess vessel capacity coming online as carriers ordered a glut of vessels during the boom years. 2. Sinking demand. 3. Plummeting bunker fuel prices 4. Large retailers and importers struggling with weak sales and hence looking to cut costs any way they can. As an importer you should definitely look to reduce ocean container freight costs through your forwarder/NVOCC or directly with the carriers, if you do direct contracts. However, be careful not to go too far in pummeling the carriers for lower rates, because no one wants bankrupt or fast-declining carriers out there mucking up the market. Service levels would plummet and when things pick up again it might be difficult to get the capacity and service you need. The ocean carriers are in for some seriously tough times. You have a perfect storm brewing of the following components:

1. Lots of excess vessel capacity coming online as carriers ordered a glut of vessels during the boom years.
2. Sinking demand.
3. Plummeting bunker fuel prices
4. Large retailers and importers struggling with weak sales and hence looking to cut costs any way they can.

As an importer you should definitely look to reduce ocean container freight costs through your forwarder/NVOCC or directly with the carriers, if you do direct contracts. However, be careful not to go too far in pummeling the carriers for lower rates, because no one wants bankrupt or fast-declining carriers out there mucking up the market. Service levels would plummet and when things pick up again it might be difficult to get the capacity and service you need.

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