 
Actual Article
|

New Services Available
Do you ship less than container (LCL)?
If so, we have you covered! Outstanding consolidation services to:
Europe, UK, Scandinavia, Mediterrean, South Africa, Mid East, Red Sea, Arabian Gulf, Indian Sub-Continent, Central & South America, Caribbean, Far East, China, Australia / New Zealand and Puerto Rico.
Please call at 603-563-9200 for discount pricing and details.
"Full Service"

| Letters |
|
|
Peter,
Liked your editorial (First things first) of April 7-13 2003, you nailed it- couldn't agree with you more.
Yes, import lanes are strong- and have been for years. But, there is trouble ahead if ocean carriers are waiting for the export segment to boost them into Paradise. I can't remember when both imports and exports were strong at the same time for other than a brief transitional period? It doesn't work that way- you never have favorable trading conditions at the same time, in both directions. So if you want your ship to come in, better have a one way ticket!
"Strategic partnerships", "value added services", "indispensable business partners" all sound good and have their place at sales/management seminars- but do remain- as the song goes (and as you stated), "Just a Dream". I also see no evidence that any carrier has achieved that "indispensable partnership" status.
And I'll tell you why- ocean carriers just don't have the skills to perform those services required by shippers for international transactions. It appears the lines don't understand what is totally involved , and that someone has to "buy something" in order to generate freight.
The roll of an ocean carrier is just a "segment' of an entire transaction. Manufactures, sales people, foreign agents, forwarders , brokers, banks, and sometimes Embassies and consulates, can all be involved in the movement of a single shipment. Providing the transportation is not enough to get you in the loop.
|
Carrier executives are "seduced" by reduced operating costs per slot with the big ships and little regard for filling them.Containerization and economies of scale have significantly reduced "per piece" ocean costs as the lines had their eyes on lower slot costs with the bigger cellular vessels.
Unrealistic GRI notices do nothing but force shipper's to reach for the phone. To a carrier trying to build a "partnership" this is the kiss of death. If these people were commercially sensitive, they would never announce these outrageous GRI's. Instead, visit the shipper's office with hat in hand and confidentially ask for an increase the shipper can live with. Is that too simple? Even less than 50% increases can kill a move and produce no freight for some. Shippers could not raise their prices so dramatically and not lose business.
Well, asking is different from receiving, and this is my point. The freight market through competitive elements, demand, and capacity will dictate what gets paid. And, as long as line CEO's play the "mines bigger than yours" game when it comes to newbuilds, pricing will not stabilize.
|
Bigger is not always better- For example, the CanMar service has done quite nicely staying with "smaller" vessels due the St.Lawrence draft restrictions. By operating ships in the range of 2700 to 3500 teus, they added vessels and routes to keep up with demand. In doing so, more ports were called with shorter transits which translated into a premium service. (13 direct foreign ports of call) Don't know if anyone even knew the draft restrictions saved them from drowning in overcapacity?
Quick relevant story: Two years ago, while attending a carrier reception in Boston, the sponsor line's CEO gave a short customary speech. Many warm and fuzzy things were said and the reception was quite nice. In closing, the CEO proudly touted new orders for 6000teu Trans Atlantic vessels had been placed. Almost choking on my shrimp, I remarked to a fellow NVO this man does not have a clue and this is good news for shippers and a Merry Christmas. The bad news- this executive thought this was a good thing!
Maybe there is an optimum size ship for profitability in a particular trade lane? So far bigger has not found it.
Richard G. Rebolledo
Seascape Lines, Inc.
Peterborough, N.H.
|
Big ships aren't always better
JoC WEEK, Monday, May 05, 2003 [ TOP ]
|
| Letters |
|
|
|
Peter Tirschwell nailed it in his column in the April 7-13 issue. Yes, import lanes are strong - and have been for years. But there is trouble ahead if ocean carriers are waiting for the export segment to boost them into Paradise. I can't remember when both imports and exports were strong at the same time for other than a brief transitional period. It doesn't work that way - you never have favorable trading conditions at the same time, in both directions. So if you want your ship to come in, better have a one-way ticket!
"Strategic partnerships," "value-added services" and "indispensable business partners" all sound good and have their place at sales-management seminars, but they remain just a dream. I also see no evidence that any carrier has achieved that "indispensable partnership" status, and I'll tell you why: Ocean carriers don't have the skills to perform those services required by shippers for international transactions. It appears the lines don't understand what is totally involved, and that someone has to "buy something" in order to generate freight.
|
The role of an ocean carrier is just a segment of an entire transaction. Manufacturers, salespeople, foreign agents, forwarders, brokers, banks and sometimes embassies and consulates can all be involved in the movement of a single shipment. Providing the transportation is not enough to get you in the loop.
Carrier executives are "seduced" by reduced operating costs per slot with the big ships and little regard for filling them. Containerization and economies of scale have significantly reduced "per piece" ocean costs as the lines had their eyes on lower slot costs with the bigger cellular vessels.
Notices of unrealistic general rate increases do nothing but force shippers to reach for the phone. To a carrier trying to build a partnership, this is the kiss of death. If these people were commercially sensitive, they would never announce these outrageous GRIs.
|
Instead, they would visit the shipper's office and confidentially ask for an increase the shipper can live with. Is that too simple? Even less than a 50 percent increase can kill a cargo movement.
Asking is different from receiving, and this is my point. The freight market through competitive elements, demand and capacity will dictate what gets paid. And as long as carrier chief executives play the "mine's bigger than yours" game when it comes to new ships, pricing will not stabilize.
Richard G. Rebolledo
Seascape Lines, Inc.
Peterborough, N.H.
Letters to the editor may be e-mailed to prirschwell@joc.com or mailed to JoC Week, 33 Washington St., 13th Floor, Newark, N.J., 07102. Letters may be edited for length and clarity.
www.joc.com
|
|
Carriers need to put more emphasis on restoring customer service
JoC WEEK, December 11-17, 2000 [ TOP ]
|
| Letters |
|
|
|
Peter Tirshwell's Nov. 13-19 column, "Seeds of shippers' dissatisfaction," touched some nerves among those who purchase ocean services. Ocean carriers do one thing well - move ships pier to pier. Forget anything else. Steamship liner attitudes and customer service can be compared to that of a public utility, government agency, or phone company, but not a commercial endeavor requiring patronage from customers.
The article did not discover these problems, but only reminded us all of the stress, frustration and wasted time associated with the purchase of ocean services. Thank you for your attention to this matter; it is an issue that needs more.
All but three and a half years of my professional life was on the "carrier" side of the fence. Now I find myself purchasing ocean services daily, and constantly asking myself, "How could it be this bad?"
My observations:
Carriers must think their customers are stupid. Why else would they try to "spin" their centralization and 800 numbers as a "benefit" to shippers? Yes, cost-cutting might require such action - but conventional accountant mentality doesn't understand the commercial consequences. It is no secret that local representation for customer service and sales works.
Buyouts, mergers, and consolidations create redundant positions. Someone has to go. But at the expense of replacing seasoned industry professionals who process the knowledge and skills (not to mention the working history of their company) with young, well-intentioned neophytes? Carriers don't understand that one good knowledgeable company industry professional is better than three kinds, two weeks of training and a computer.
|
There was a time when international transportation was a career. Lower Manhattan was full of such professionals. They could assist shippers with any problem, and they started and retired from the business (many from freight forwarding).
Today, one can justifiably be suspect of those entering steamship sales/customer service. What would attract anyone to a field with poor pay, no clearly visible career path, and exposure to the downside of mergers, buyouts, and consolidations, plus starting salaries half to a third of those in other industries?
Good talent does enter the business but soon gets discouraged and disenchanted. Veterans have also been displaced to retirement, other industries, or self-employment. What a wasted resource! A final note about steamship liner sales: in most normal businesses, salespeople in a sense are in business for themselves. Sales is motivated by commissions, a piece of the action. Do you know of one carrier today that links compensation with productivity?
Who would want to enter an industry under these conditions? Again, we see executives with accountant mentalities that do not simply understand simple commercial motivations. These scenarios lean any reasonable person to believe that top management is clueless about understanding this people-to-people business.
When our company needs ocean services or a service contract, we support those lines where we know key people. It's safe to say that forwarders or non-vessel-operating common carriers will tell you there might be one or two people in an office who can answer an important question or take a problem to the next level.
|
Would anyone put a ship into a pier empty of cargo? All investment seems to be in bigger and bigger vessels with out regard for those in a position to fill them. Management classifies employees as a "payroll expense", not an investment. Better people would show a return on investment.
Shouldn't we revisit the independent agent- agents who work on commissions? The motivation for customer service/sales is built in, a degree of regional control and territorial responsibility is established, and personnel turnover is less.
With agencies, the competition component has shifte toward the steamship agents and away from the carrier itself. A regional market is more defined by competing agencies and the service quality each offers.
In the late '80's and '90's independent agents fell out of favor by the carriers after hundreds of years because of corporate egos and the contest between carriers to establish their own local presence.
Independent agents can always do it cheaper, and NVOCCs have now become de-facto sales departments.
Richard G. Rebolledo
Seascape Lines, Inc.
Peterborough, N.H.
Letters to the editor may be e-mailed to prirschwell@joc.com or mailed to JoC Week, 33 Washington St., 13th Floor, Newark, N.J., 07102. Letters may be edited for length and clarity.
www.joc.com
|
|
| Archives: [ TOP ]
|
PROMPT - COURTEOUS - EXPERIENCED - NEW ENGLAND BASED/OWNED - NEUTRAL NVOCC
|