Here at Straightforward Consultancy, we're managing the freight models for many customers, and the key markets for most UK importers are the US and Asia, but Asia is the one where the freight rates are most volatile, so you really need to manage this area carefully.
Since early 2012, we have seen huge swings in ocean freight full container (FCL) rates from Asia, all related to the supply/demand cycle and the fact that Asia-Europe is a very seasonal market.
Caught up in the middle of this are the UK importers, most of whom would much prefer a more stable freight rate so they can build these figures into their selling prices and know their margins are covered.
In the last few weeks we have seen rates falling as low as USD 100 per 20 foot however that places shipping lines in a loss making position so we're seeing them withdraw vessels to reduce capacity and return rates to sensible levels.
Most customers don't have the time or expertise to check whether their own ocean freight rates are competitive and we often find they're paying around 35% more than they need to so even though the market rates may slip back, the customer's rates don't follow the market.
On April 1st, the shipping lines are planning some significant increases in freight rates of up to USD 900 per TEU (20 foot container) or USD 1800 per 40 foot container.
If you'd like the peace of mind of knowing that your rates are always kept competitive and carefully monitored, please do give me a call and I'd be happy to explain how we can help you.
Kind Regards
Andy Cliff
Director
Straightforward Consultancy Ltd
4, Beckett Drive
Winwick Park
Warrington
Cheshire
WA2 8XJ
Tel : 07934 443492
Email : andy@straightforwardconsultancy.co.uk
Web : www.straightforwardconsultancy.co.uk
Blog : http://straightforwardconsultancy.blogspot.co.uk/
Twitter: @AndyCliffSCL
Linkedin: http://uk.linkedin.com/pub/andy-cliff/1a/43/72
Skype: andy.cliff1@skype.com
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