NEWS\\\


Shipping lines are cancelling more sailings as a way of dealing with over-capacity, says Drewry Supply Chain Advisors in a recent report. The transport analysts say that nearly 150 sailings were cancelled, most of them on the Asia-Europe and Transpacific routes between October and February. It appears that the lines are


increasingly resorting to this tactic, rather than the traditional means of managing capacity, such as laying up tonnage or making scheduled withdrawals of complete services at times of low demand. Drewry research manager


for freight rate


benchmarking, Martin Dixon, says that with the heavy investment in new large ships, lines prefer to keep them in service, albeit sporadically, rather than lay up expensive new tonnage. While withdrawing individual


sailings is not new, particularly around the Chinese New Year holiday, the practice is becoming more extended and it could in future become the norm, warns Drewry. Dixon adds that, in fairness to


the shipping lines, they do usually give shippers reasonable notice of cancelled sailings – around a month. Nevertheless, they


GSF launches load safety campaign


The Global Shippers’ Forum


released details of a global campaign to improve maritime transport safety in London on 8 April. The GSF says that while the vast majority of shippers comply with


the rules, misdeclaration


and poor standards of loading and securing do take place, oſten through ignorance. To bridge this knowledge gap, the GSF has launched a series


of easy to understand best practice guides for managers, packers and warehouse staff who actually physically handle, prepare, secure and stow cargo for shipment. The GSF campaign and best


practice materials will be rolled out by shippers’ organisations throughout the world to support the transport safety initiatives by the main UN organisations.


Still-simpler shipping from Maersk


Maersk Line says that it is moving ahead with the second phase of its tariff simplification programme - the simplification of local surcharges. It follows “positive customer feedback” from its move towards the end of 2012 to simplify ocean freight surcharges, under which basic ocean freight, declaration fees, carrier security


charges, currency adjustment factors and river and canal fees were rolled together. The second phase of the


programme will see local origin and destination handling charges, export and import service fees and origin and destination documentation charges similarly treated, from 1 May.


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cause inconvenience, he argues, adding: “It also seems that the major importers and exporters have been less impacted than smaller ones.” Larger shippers are oſten accommodated by having their traffic moved to alternative services, but the lines appear to be less willing to do this for their smaller customers. The report continues: “Shippers know where they stand with


service withdrawals, whereas the blanking of sailings sometimes leaves them confronted


unexpected space shortages and roll-overs, as surrounding vessels quickly fill up. “ There is also little if any


evidence that shipping lines are willing to recompense customers for cancelled sailings, although some shippers are now redrawing their contracts to give themselves


with


Issue 3 2013 Cancelled sailings leave shippers seething


some kind of protection. Standard shipping contracts have tended not to address the issue until recently because cancellations were not common in the past, says Dixon. He adds: “It has also prompted the many shippers who did not have formal contracts to consider using them.” Unpopular though the policy


may be among shippers, Dixon believes that lines will be tempted


3


to continue the practice for the foreseeable future: “The carriers have had some success in keeping up the spot freight market despite the over capacity, partly as a result of the cancelled sailings as well as frequent general rate increases.” Less reliable shipping services


may also tempt shippers to increase their stock-holdings, driving up total supply chain costs.


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