Going into 2009, the only thing that is certain is there will be more uncertainty, especially within international commerce. An erratic financial environment will play havoc with supply and demand, fuel costs, currency adjustments, much like in 2008, adding to the mounting uncertainty in international shipping during 2009.
A safety net that continues to broaden its web is the ocean transportation intermediary and shippers associations. Uncertainty creates an opportunity for intermediaries and shippers associations to step in and fill the void created in this environment. Long noted for their adaptation to market conditions, intermediaries and shippers associations are forging an even greater role in today’s turbulent supply chain, as they actively manage severe spikes and dips — in costs, supply and demand, space allocation, equipment availability, intermodal and warehousing requirements. Nearly all the basics of shipping have become high-maintenance management chores.
Shippers averse to the risk and liability of a turbulent market will outsource more than ever before to intermediaries to help manage uncertainty, thereby enhancing the role that intermediaries will play in today’s market.
As we approach the 10-year anniversary of passage of the Ocean Shipping Reform Act of 1998, we can clearly see the effects with the elimination of common carriage, death of the conferences and the renewed importance of shippers associations and increased role of the intermediaries as viable alternatives to cope in today’s shipping environment.