- The fractious relationship between ocean carriers and their freight forwarder and NVOCC customers is seen as one of four key disrupters to the supply chain next year, by maritime consultant Drewry.
- Meanwhile, the consultant warned shippers on the transpacific using US west coast ports, to be prepared for possible supply chain disruptions around the longshoremen contract renewal negotiations in the first quarter.
- And the fourth – and constant – a threat to the supply chain next year listed by the consultant is, of course, the pandemic.
According to maritime consultancy Drewry, one of four significant disrupters to the supply chain next year will be the acrimonious relationship between ocean carriers and their freight forwarder and NVOCC customers as reported by The Loadstar.
Withdrawing relationships
“We are starting to see that some ocean carriers are withdrawing from NVOCC relationships and others making it difficult for NVOs to offer carrier-like fixed-contract rates to shippers under preferential ‘named account’ terms agreed in advance with ocean carriers,” it said.
Several forwarding contacts have told The Loadstar they have been unable to secure rate agreements from the lines for January on the Asia-North Europe and transatlantic routes.
“Our account manager seems to have gone to ground – 18 months ago we couldn’t get rid of him, now he’s constantly unavailable and doesn’t reply to our e-mails,” said a director of one UK-based NVOCC.
Situation fear
Another forwarder said all he got back from his account manager was “excuses” for not quoting January rates, and that the stock answer from carriers was: “Let’s wait until after CNY.”
As a consequence, small, and even some mid-sized, forwarders and NVOCCs are unable to offer any guidance on next year’s freight charges to their shipper customers.
The fear from this situation is that it will force many smaller shippers to, at best, defer their orders or, in some cases, abandon their product order books altogether, given the uncertainty in the market and the risk that lower-value imports will become unsustainable.
“More BCOs – even the largest ones – will have to accept the new reality of the market: you cannot expect to ship 10 containers one week, 50 containers the next and hope to get 100% capacity for both weekly volumes,” said Drewry.
As a result, disputes about carrier ‘dead freight’ charges for slots not used – more often only seen on the charter market – will arise, as they will when weekly volumes are in excess of the MQC.
Spreading disputes
“Disputes will spread in 2022 about how to deal with excess volume above weekly MQC, and deficit volume below weekly MQC, and about associated penalty clauses,” said Drewry.
Meanwhile, the consultant warned shippers on the transpacific using US west coast ports, to be prepared for possible supply chain disruptions around the longshoremen contract renewal negotiations in the first quarter.
“For BCOs with long memories of earlier disputes, now is the time to look at alternative routes to avoid US west coast ports,” said Drewry.
And the last– and constant – a threat to the supply chain next year listed by the consultant is, of course, the pandemic.
“Further lockdown measures in other countries, triggered by new Covid variants or pandemic waves, also cannot be ruled out,” it added.
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Source: The Loadstar
