Surprise, surprise! The shipping industry as a whole and ocean carriers in particular appear to have weathered the economic storm of the past 2½ years — an impressive accomplishment without the aid of financial stimulus from governments. Shipping didn’t need government intervention, unlike Wall Street and assorted banks, insurers, automakers makers and sundry ailing recipients of generous handouts and billions in bonuses.
2011 will be another year of decision-making. As seen in other industries, there will be consolidation among the remaining ocean carriers. Although low rates may remain through early this year, it’s reasonable to expect base rates and assorted surcharges will be adjusted upwards and ancillary items such as free chassis and extended free time will be phased out.
New charges such as penalties for non-delivery and “rolling” fees may be implemented, and marginal customer service may deteriorate further as carriers rationalize operations. Cost-saving measures such as slow steaming, routing changes and port omissions are here to stay.
It’s imperative for companies across the supply chain to enlist the best-qualified personnel, because neither the executives nor computers make the vital, day-to-day decisions. People need proper training, treatment and compensation, as well as the understanding that they can excel and grow in this industry. It’s unfortunate office staff no longer can witness loading operations at the docks, set foot on a ship or experience a voyage to a foreign port. Virtual tours just won’t do. The romance of our industry is as dated as a gyrocompass.
Let’s make the best of this exciting time and, as always, have some fun doing it.