SBS Wordwide Urges Strong Carrier Relationships

press release
Monday, January 09, 2012
SBS Worldwide Group Chairman Steve Walker.

Global supply chain provider SBS Worldwide has urged shippers to use logistics providers with strong relationships with shipping lines or they could find their shipments left on the quay side.

 

The warning comes as shipping lines have been withdrawing capacity because the industry has been suffering from over-supply of vessels on key trade lanes. SBS Worldwide Group Chairman Steve Walker said: “When shipping lines remove services in order to balance supply and demand, it results in a short term reduction in capacity. “When this occurs, shipping lines will leave containers behind - it tends to be those being transported on behalf of shippers with short-term supply and demand driven carrier relationships that suffer this fate. The best way to avoid being affected by a situation like this is to make sure that your logistics provider has strong, long-term relationships with more than one reliable shipping line on any trade lanes where you require transport services.”


Walker added that there are already reports of some cargo being left behind as the result of a mini surge in cargo from China as companies attempt to export ahead of the closure of factories for the Chinese New Year celebrations.
The service withdrawals come as carriers have had a tough year. Record profits in 2010 turned to losses in 2011 because of overcapacity in the market. To reverse the oversupply situation, carriers have been busy removing services and laying-up vessels.

 

According to shipping line analyst Alphaliner, the number of vessels taken out of service - an indication of how many ships have been temporarily withdrawn from service – at the start of December was 19.8% higher than the start of November. The shipping industry was struck by a major capacity shortage in late 2009/early 2010, when shipping lines removed a glut of capacity – to correct an oversupply situation - at the same time as an unexpected boom in business. The volatile mix resulted in months of delays to containers as shipping lines were unable to provide enough space on ships.
 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Evergreen Upgrades its Intra-Asia Service Network

Evergreen Line announced it will partner with Mariana Express in launching a joint South China- East Malaysia (SEM) Service. The new initiative will give a boost

Bureau Veritas Diversifies with MatthewsDaniel Acquisition

Bureau Veritas announced today that it has acquired MatthewsDaniel Ltd, a global provider of loss adjusting and risk assessment services for the offshore industry.

Contracts

Vard Orders Parat Electric Steam & Hot Water Boilers

During the last month, PARAT Halvorsen AS has collected four new boiler plant orders from the Vard Group and their multipurpose platform ships of Vard 1 08 design.

Newport News Selects Paramarine Design Software

QinetiQ’s Paramarine Ship and Submersible Design Software has been selected by Newport News Shipbuilding (NSS) as its primary naval architectural software. QinetiQ

VOSTA LMG Secures Order From Boskalis

VOSTA LMG has been awarded an order for efficient dredge ball joints from maritime services company Royal Boskalis Westminster. The order consists of a series

Finance

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

Statoil, DNV GL Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

Container Ships

Evergreen Upgrades its Intra-Asia Service Network

Evergreen Line announced it will partner with Mariana Express in launching a joint South China- East Malaysia (SEM) Service. The new initiative will give a boost

Rickmers-Linie Appoints Interliner Agencies

Hamburg based Rickmers-Linie has appointed Interliner Agencies as its new agent in South Central Europe. The agency contract covers Slovenia, Austria, Czech Republic,

NYK Opens New Planning Center in Kumamoto

On September 1, 2014, NYK and Kozo Keikaku Engineering Inc. established a stowage planning center for container shipping at the Kumamoto office of Kozo Keikaku Engineering Inc.

Logistics

Evergreen Upgrades its Intra-Asia Service Network

Evergreen Line announced it will partner with Mariana Express in launching a joint South China- East Malaysia (SEM) Service. The new initiative will give a boost

Logistical Scenario Analysis for Hydrodynamic Applications

To calculate the operability of the whole logistics chain, rather than only individual operations, MARIN has developed the hydrodynamic scenario analysis program ScenSim.

Algeria in Talks to Export Crude to Venezuela

Algeria is in talks to export crude oil to fellow OPEC member Venezuela, Algerian Energy Minister Youcef Yousfi said on Tuesday, confirming a Reuters report. Last week,

 
 
Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2152 sec (5 req/sec)