Tuesday, October 12, 2010

Carriers Now Focusing on Profits Not Market Share

(International Freighting Weekly – Damian Brett)

Shippers should not negotiate contracts with the attitude that “volume is king”, as carriers are now more concerned with profitability than market share, according to a leading consultant.

In its Annual Container Market Review and Forecast 2010/11, Drewry Shipping Consultants said the days of carriers offering lower rates for large volumes in order to grab market share were gone and shippers should, therefore, work more closely with carriers to get value out of contracts.

The report also suggested the drive to remain profitable also meant carriers would only increase active tonnage if the necessary volumes were there. Read more here.