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THE DIVIDE BETWEEN OCEAN AND AIR FREIGHT If recent press reports are correct, shipping lines are in no hurry to replace the vessels they withdrew from service last year. They appear to fear that the current flow of traffic on the Asia/Europe trade route will not be maintained. So, in an effort to recover losses they made in 2009, their prime aim is to get the freight rates as high as possible by keeping the supply of container space lower than demand. Many have also introduced a 'slow steaming policy' aimed at reducing their fuel burn and reducing both costs and emissions. This has therefore increased many port-to-port transit times by 5 days or more. Many airlines also reduced the number of flights operating from the region as demand for space fell together with the rates they could acheive. Aircraft are unable to reduce speed to conserve fuel spend but airlines are similarly reluctant to increase capacity to match demand until they too can be sure that current increased demand can be maintained. What's alternatives are there for importers? With ocean freight you must contend with ever-rising rates for longer than expected transit times together with a fight to get space on your chosen vessel? For airfreight, there are delays in getting space which increase overall transit times at an ever-changing rate. Albatros could be the solution for many companies and many specific shipments. Container capacity is available from all origins due to our contractual arrangements with shipping lines. From our Dubai hub we have our own contracted B747Fs to supplement plentiful direct scheduled capacity. Rates are stable. Prior to May 2009 they had not changed for over 10 years. They were then reduced but increased in October to levels below those of 2008. So Albatros is not only used by companies who seek to deliver to schedule but is now considered the norm for companies seeking to more closely control stock levels and their cash-flow; so important, according to experts, when trading out of recession.. Colin Sullivan 9th Match 2009 Cromac Smith Ltd., 34-40 Warwick Road, Kenilworth, Warwickshire, CV8 1HE U.K. |
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