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European Shippers' Leader Seeks Carrier Stability |
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Saturday, 13 March 2010 |
 The European Shippers Council elected Jean Louis Cambon, head of Michelin Tire’s Ocean Management Committee as the new chairman of its Maritime Transport Council this week.
In accepting his new position, Cambon, who is active in the French
Shippers Council, called on European shippers to seek a constructive
relationship with the carrier community but at the same time to
challenge some of their current practices.
He said liner shipping is one of the few sectors of industry “that
believes it can reduce service quality while simultaneously increasing
prices, and expect its customers to accept this and additionally take
the blame for the carriers’ misfortunes.”
“Uppermost in shippers’ minds, right now, is the shortage of capacity on
some of the major shipping routes in the world. Carriers must
understand that by restraining capacity below trade demand and creating
cargo roll-overs, they will encourage the increasing number of shippers
who want to shorten their supply-chains to shift sourcing of their
products to origins closer to consumption markets, which eventually will
reduce the ton/miles transported and the fleet necessary to carry
them.”
“Those carriers introducing slow-steaming to reduce their own costs must
understand the possible impacts this has on their customers’ supply
chains: lengthening lead-times, increasing inventory cost, disorganizing
transshipment patterns, and making changes to schedules and port
rotations with little or no warning. Carriers should pay more attention
to their customers needs and take the time to learn about their
customers’ businesses. That way they might focus less on chasing market
share, over-ordering new ships and selling rates, and focus more on
identifying and delivering the right services and improved service
quality.”
“It is time to move beyond the old cycle of boom and bust, rate
volatility and instability in the liner shipping market; we all have a
vested interest in the long term stability of the liner shipping sector;
equally the liner shipping sector has a vested interest in the
sustainable economic growth of their customers. There is still much to
be done, and I look forward in playing my part in the achievement of
these goals.”
Source: Journal of Commerce
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