Range of factors make rate hikes unavoidable, MOL's UK chief tells shippers
2012 05 14
- Details
SHIPPING price fluctuations are a necessity despite carriers being "painted as the bad guys", said Mitsui OSK Lines (MOL) UK managing director Adrian Jones at logistics costs seminar in Birmingham.
"Calculating a realistic price for a container movement can be very complex - it depends on how full the ship is, the price of fuel, how fast it sails, how long a container might stay in the port and so on," said Mr Jones.
As cargo flows differ the carrier must deal with empties in one area and a surplus in another, and then to reposition them elsewhere in the world, which makes it impossible to offer cheaper rates, he said.
When shippers switch lines to get the best rates it opens up with risks of operational failure with newer partner and ends up raising administration costs. By working closely with carriers on longer-term price deals, shippers can be prioritised at times of capacity crunch.
A give and take relationship can cut costs. "Everyone specifies a delivery at 8am - whether they need the goods then or not. If they agreed to receive the container in the afternoon, the delivery cost could well be cheaper," he added.
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