- The future of some feeder services in North Europe is under threat from the pincer movement of sky-high charter hire rates and escalating port delays.
- Despite their enormous profits, ocean carriers are keeping a tight rein on the purse strings and refusing to compensate feeder operators struggling with additional operating costs.
A recent news published in the Loadstar by Mike Wackett states that soaring costs put the squeeze on feeder operators, while profit-fat liners look.
Feeder operators in trouble
Feeder operators are paying at least double the daily hire rate of a year ago for the same ships and, at the same time, losing their traditional modus operandi, which is based on flexibility, by being obliged to commit to charters of two years or more with owners.
So, as container lines discharge more containers at alternative ports, due to congestion at hub terminals, shippers could find their cargo stranded for weeks due to the lack of relay options.
And despite their enormous profits, ocean carriers are keeping a tight rein on the purse strings and refusing to compensate feeder operators struggling with additional operating costs.
What does a senior feeder contact say?
According to one senior feeder contact, carrier procurement teams are “putting their fingers in their ears” when asked to agree to surcharges or rate increases.
“We recently asked for a humble €35 per teu surcharge to cover some of the delays and were told to ‘take a walk’,” he said, and described the situation at North Europe’s largest container hub of Rotterdam as “bedlam”.
“Spending six-eight days in port is the norm. The knock-on effect of course is that windows at ports are missed, and it isn’t uncommon that our 14-day round trips turn out to be 19-21 days,” said the feeder operator.
Charter rates alone costing a fortune
According to the operator, with charter rates alone costing a fortune and with additional bunkers for idling and lay-by berths, as well as the additional costs for tugs and pilots, the costs are piling up.
“That is before lost slots due to missed mainline connections and cut-and-run, where we are faced with a loss of revenue,” he added.
Another industry contact agreed feeder operators were being treated unfairly by carriers and predicted a “shortage of commercial feeders” in the North Sea and Channel.
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Source: The Loadstar
