PLUS+ Login


To log into your PLUS+ Account, complete and submit the information below.

Not a PLUS+ subscriber already? Become one now.


For assistance with your PLUS+ subscription, contact customer service.

Premium access to exclusive online content,
companion digital editions, magazine issues and
email newsletters. Subscribe Now.



Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $99/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

You have been logged out of PLUS+

For assistance with your PLUS+ subscription, contact customer service

Need to access our premium PLUS+ Content?
Upgrade your subscription now.

Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?
To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For assistance with your PLUS+ subscription, contact customer service.

Subscribe to our free, weekly email newsletter!


Ocean Cargo: Capacity Crunch Continues

By Patrick Burnson
January 16, 2014

As always, the freight rate outlook for container shipping will vary by route and by direction and will depend on the length of contracts, say analysts for the London-based consultancy, Drewry Supply Chain Advisors.

“Overall, we predict a moderate increase in freight rates in 2013 of 3-6% in average east-west freight rates in 2013,” says Drewry’s director, Philip Damas. “Contract tenders currently being finalized for calendar 2013 also indicate this type of rate changes.”

The fact that rates may rise in a weak market is partly because of the lag time of annual contract rates, he explains. In early 2013, annual contract rates which commenced in early 2012 (at a time of a price war between ocean carriers) will expire. These very low contract rates will then be replaced by slightly higher ones.

“Shippers who buy shipping capacity on a spot basis or under short-term contracts have been paying significant rate increases since the summer of 2012,” says Damas.
“In effect, these shippers have already seen price increases from which annual contract shippers have until now been insulated.”

The fuel surcharge component of container freight rates will remain high in 2013 in line with the underlying marine fuel price trends. However, the container shipping market remains unstable and unstable, Drewry analysts say.

“We note that carriers have been losing money in 2011 and 2012 and are close to the point where they will need to reduce capacity to protect their cash flow,” says Damas.  “If the situation worsens, we could see a repeat of 2010, when capacity was slashed, freight rates were ratcheted up and contracts were renegotiated.”

So how do shippers protect themselves? Drewry generally advises them to develop close relationships with core, preferred carriers, and to run detailed professional tenders, instead of trying to capitalize on attractive, short term price reductions from unfamiliar or “opportunistic” carriers.

“We say this because of the continuing disruption in the market, which could result in the interruption of service or in sudden freight rate increases or in unilateral contract terminations,” says Damas. “Just look at the speed at which some small transpacific carriers pulled out of the market, with little or no notice, when rates fell.”


About the Author

image
Patrick Burnson
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Supply Chain Management Review magazine

Subscribe today. Don't miss out!
Get in-depth coverage from industry experts with proven techniques for
cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Recent Entries

A guide to better understanding the market, the software and the benefits

While world leaders debate whether climate change is real, it's time for supply chain professionals to take the lead.

The election of Donald Trump as the next U.S. president has the potential to upset the established global order and change the economic outlook.

The best supply chains are more than a collection of technologies and processes. As supply chain evolves from tactical to strategic, they enable a company’s go-to-market strategy and competitive position.

The fast food leader stays atop the marketplace with a “System” where suppliers and McDonald’s “share the pie.”

Article Topics

News · Ocean Freight · Supply Chain · Shipping · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA