[SURVEY RESULTS] SHOULD SHIPPERS BE WORRIED ABOUT

LOW CONTAINER RATES?

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@XENETA_AS

ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

CONTACT US.

THINK AGAIN.

ONE WOULD THINK THAT LOWER

CONTAINER RATES WOULD MEAN LOWER SHIPPING COSTS AND

THUS HAPPY SHIPPERS, RIGHT?

IN OUR LATEST TWITTER SURVEY, SHIPPERS TELL

US OTHERWISE.

WE ASKED IF SHIPPERS SHOULD BE WORRIED ABOUT LOW CONTAINER RATES AND OVER 55% OF RESPONDENTS INDICATED THAT YES, SHIPPERS SHOULD BE CONCERNED WITH 36% SAYING NO AND 9% OF RESPONDENTS DID NOT KNOW.

55% YES

9% I DO NOT KNOW

36% NO

ACCORDING TO THE JOURNAL OF COMMERCE, WHILE LOGISTICS DIRECTORS ARE PATTING THEMSELVES ON THE BACK FOR SECURING RATES ALMOST HALF OF WHAT WAS SECURED THE PREVIOUS YEAR, THEY ARE CONCERNED ABOUT NEXT YEAR WITH THE POSSIBILITY OF HIGHER RATES AND ROLLED CARGO.

WE HAVE LOCKED IN VERY LOW PRICES BUT ONCE THE CARRIERS CREATE AN

ARTIFICIAL SPACE SHORTAGE BY TAKING SHIPS OUT OF THE TRADE LANES, THEY

WILL BE ABLE TO DEMAND HIGHER PRICES FROM THE NVOCCS AND

SMALLER IMPORTERS...

- ONE RETAIL IMPORTER TOLD THE JOURNAL OF COMMERCE

LOW RATES MAY EQUAL SUBPAR SERVICE

WE ASKED IF SHIPPERS SHOULD BE WORRIED ABOUT LOW CONTAINER RATES AND OVER 55% OF RESPONDENTS INDICATED THAT YES, SHIPPERS SHOULD BE CONCERNED WITH 36% SAYING NO AND 9% OF RESPONDENTS DID NOT KNOW.

AT THE SAME TIME THOUGH, SHIPPERS SHOULD TAKE MORE THAN RATES INTO CONSIDERATION - SERVICE LEVELS, SPEED, VALUE-ADDED SERVICES ETC.

THE OVERALL OCEAN CONTAINER MARKET IS A CONCERN FOR SHIPPERS AND HAS RESULTED IN MANY CONTAINER VESSELS SCRAMBLING TOWARDS REVISED OR NEW ALLIANCES TO REMAIN ALIVE

IN OTHER WORDS, SHIPPERS SHOULD BE LOOKING FOR A PARTNER TO RIDE THE UNCERTAIN ECONOMIC WAVES. LOWER RATES ARE GREAT BUT WHAT GOOD ARE THEY IF THE SERVICE LEVEL IS SUBPAR?

SO, WHILE SHIPPERS SHOULD INDEED BE CONCERNED ABOUT LOWER CON-TAINER RATES, THEY SHOULD ALSO

BE CONCERNED ABOUT THE OVERALL HEALTH OF THEIR OCEAN CONTAINER

PARTNER.

BE SURE TO CHECK OUT ONE OF OUR EARLIER BLOG POSTS: ‘IT’S NOT ABOUT PRICE ALONE. HOW

DO YOU SELECT YOUR SUPPLIER?’ FOR MORE ON THIS TOPIC.

READ HERE

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

BUSINESS:

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