Few companies finished 2009 unscathed by the worldwide economic downturn. Shipping was particularly hard-hit. We do not expect a fundamental change in 2010. The overcapacity created in times of overly optimistic forecasts and the effects of this hangover will be felt for some time.
One would hope carriers will respond to this crisis in a prudent fashion and forgo the chase for growth at any price. But we have seen some carriers, including those who required outside financial aid, cutting rates more deeply than we wanted to engage in. Market share in itself cannot be an objective but must be part of a business strategy that aligns responsible growth with compensatory returns on investment.
In managing a downturn, it is important to stay the course. We hear from our clients that they want to have a dialogue to jointly come up with the best transportation solutions -- and that includes sustainability, be it financially, environmentally or structurally. If the economic crisis has taught us anything, it is to be more balanced. Finding a measured approach in a rapidly changing marketplace is the best insurance policy to avoid the pitfalls of overexuberance or deep negativity.
We expect 2010 to be another challenging year. Responding to changes quickly without jeopardizing our long-term views is the key to coping successfully in this environment.