Excess Capacity vs. Low market Growth
Due to ongoing excess capacity and low industrial growth, sea freight charges remain under heavy pressure.
For a continued period of time, cargo ship carriers, in order to minimize losses,
enforced a “no profit rate” just to fill the vessel allocation and cover the committed costs involved.
Seems that in the last years, growth of capacity has run ahead of growth in demand.
This, although extremely difficult for ship carriers to recover from, proves to be quite an advantage for shippers.
Medium and small businesses who in the past were unable of trading overseas due to overpriced sea freights, now can do so quite reasonably.
Today, whether you are loading a standard FCL container or LCL shipment, chances are you are getting your moneys’ worth.
More so, new tools are now available to shippers that were never accessible before.
ShareShipper, a new shipping social marketplace providing opportunities to connect and network with all shipping industry players, offers logistics solutions and even further cost reduction.
Prospects such as these which include options of sharing a container load and land transport rates just as an example, are what the future is about in today’s shipping industry & global market.