As 2012 approaches, I am reminded of the painful lessons of 2009 — increased capacity, lagging demand, ships at anchor and rates levels that forced service restructures reflective of the lack of operating capital, profit completely forgotten. Does that business model loom again? If consolidation trends resume, will the carrier industry move to the unpopular service structures of the banking and airline industries and add surcharges to capture revenue for costs incurred by services that exceed the simple movement of freight from point A to B? Will service be limited for small to midsize customers? Will sales be focused on only top-tier accounts that produce revenue?
There are few clear answers. A few things are certain, however: Carriers will deploy service with capacity and cost in mind, including slow-steaming.
The tight and controlled market furthers the need for carriers and customers to communicate specific requirements and clearly define needs. Commitments among key stakeholders to meet customer service expectations will prove vital to the success of long-term relationships.
Customers who provide accurate forecasts, volume commitments and realization of true cost impact will remain the most valuable partners to carriers. Carriers who provide realistic expectations on deliverables and communicate clearly and regularly on challenges will be service providers customers retain and count on. Key to positive mutual results will be multilevel relationships between the people of both organizations.
Fortunately, the industry is rich with experienced people who can facilitate these positive results, having been through the pain and experience of 2009 (and earlier). While 2012 will certainly provide new challenges, clear communication and clarity of purpose make navigation through this difficult time possible and provide the foundation for successful long-term relationships.