Are Your Ocean Freight Rates on the Rise?

2010 continues to present cargo owners with unprecedented challenges in moving their containerized ocean freight.  All segments are paying more to ship their goods. Even at the rapidly rising prices, most are still having problems securing space and equipment to meet their demands.

While carriers are returning idle capacity and new equipment to the global market, it hasn’t been fast enough to meet the demand caused by an economic recovery that has retailers scrambling to restock inventory.  In a recent New York Times article, I was quoted as saying that for many of my customers, it has become a weekly battle to secure space and equipment at a competitive price.  You can read the article by checking on this link – www.hortonglobal.net/NY_Times.html

The key to a successful ocean transportation program in these uncertain times lies in a number of fundamental strategies.  Here are three of the top things you should consider doing:

* Build and manage a successful RFP (Request for Proposal) process.
* Negotiate ocean service contracts that not only provide you with a competitive price, but will allow for minimum risk regarding space/equipment/new surcharges.
* Consistent, planned follow up with your vendors to ensure they are meeting your expectations as well as you meeting theirs.

Logistics professionals are stretched to the limits these days, but now is not the time to sit back and assume that the ocean service contracts you signed in the past few months are still current and competitive.  Here are things you should be asking yourself:

* Are you familiar with all the ocean carriers that serve your origins and destinations?
* Are you doing a regular “gut check” on your current contracts to make sure the rates, services and boilerplate issues meet your current requirements?
* How are we staying current on carrier rate and surcharge adjustments?  If these adjustments affect our contracts, are we minimizing the impact?
* Are your relationships with your current ocean carriers becoming contentious and emotional?
* Do you have the time and staff to accomplish all these issues on, at the very least, a quarterly basis?

Horton Global Strategies can support your efforts to secure the best ocean transportation service contracts.  We have over 25 years experience of negotiating and managing all aspects of ocean service contracts, and our record speaks for itself.  We have saved every single one of our customers significant money on their ocean transportation spend. No exceptions. Our client portfolio consists of companies that ship as few as 200 containers per year and others that ship more than 25,000 containers per year. Whether you require that “ gut check” of your current contracts or seek improved ways to enhance your RFP and contract process, we will offer you a professional, non-biased, and unemotional review of your ocean transportation program.  We always keep your best interests in mind.

Email us at steve@hortonglobal.net, or callus toll free at 1-877-486-9001. To learn more about us, visit our website at www.hortonglobal.net.

Steve Horton
Principal
Horton Global Strategies, LLC
Tel      404- 486-9000
Cell     404- 451-1114
Fax     404- 486-9005
Email  steve@hortonglobal.net
www.hortonglobal.net