2008 Ocean Transportation Challenges

Whether you are an importer or an exporter, 2008 will present you with unique ocean transportation challenges.

Ocean carriers in the TSA have announced a five point plan in 2008 Asia/ North America rates to bring back profitablity.  This plan includes freight rate rate increases, peak season surcharges, altering the timeframe of service contracts, recovering trucking costs, and most importantly, restoring a floating bunker fuel surcharge.  They have also withdrwan almost 27,000 TEU of weekly capacity in the Asia/USA trades through what is commonly referred to as the slack season.  Carrier executives have stated that if this market does not allow for bunker recovery, they will have no choice to move this capacity to other, more profitable tradelanes, such as the Asia to Europe tradelane, which has recently, for the first time ever, exceeded the TransPacifc Eastbound Trade in total volume.

Meanwhile, exports from the USA to Asia alone grew by over 12% in 2007, and in 2008 exports are expected to grow another 13%.  This is all great news for exporters who want to ship their products overseas, but this will also put additional pressure on carriers to position containers at inland locations, where the majority of exports are located.  Carriers will seek to recover these repositioning costs from exporters.

Managing your current ocean contracts and negotiating your new ocean contracts are going to command much more of your time and energy in 2008.  What used to be a once a year project has now become a year round event.  While the ocean carrriers have every right to ensure profitability, you need to ensure that your ocean freight rates keep you competitive as well.

Let Horton Global Strategies work on your behalf in 2008 to ensure that your current ocean contracts are competitive and that your new contracts will ensure the rate stability and equality that you require.  We have decades of experience in ocean service contracts.  We understand the various aspects of contract language and are intimately familiar with ocean carrier pricing and servide trends on a global basis.  Our wealth of knowledge ensures that you obtain the best best rate and service committments from carriers in every trade. You will realize savings in both transportation costs and staff time. Email us at steve@hortonglobal.net , or call us toll free at 1-877-757-3380. 

To learn more about us, visit our website at www.hortonglobal.net .

With Best Regards,

Steve Horton
Principal
Horton Global Strategies
Tel      305-757-3380
Cell     786-223-0420
Fax     305-757-3371
Email  steve@hortonglobal.net
www.hortonglobal.net