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Lower ocean freight rates for 2006?
Speculation and rumors abound that this year could be a
benefit for the shippers. Last
year the huge peak season along with congestion on truck and rail
and vessel as well as big fuel costs, which all carriers pass on to
the shippers in the form of surcharges, made for a plus for the
carriers at the expense of the shippers.
This year we saw much less of peak season
problems and we saw fewer congestion situations in all modes of
transportation. Fuel
prices have backed off their outrageous highs.
Shippers appear to have become determined not to be squeezed
by all modes of transportation carriers, as they were a year or year
and a half ago. Couple
all this with the prospect of huge new ships being built to carry
much more cargo more efficiently and economically. Shippers should be in a position to negotiate better rates
and services.
Once again it’s time for international buyers
and sellers to consider the pros and cons of carrier contracts. Can you negotiate a contract which includes rates AND
services? Can you get a
decent rate and some guarantee that your cargo will not be bumped,
left behind? Can you
negotiate a rate that will not be increased for a year?
Can you negotiate a rate with no increase in surcharges for a
year?
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Recently a representative of an international
trading company spoke of an interesting shipper/carrier contract in
which they were guaranteed no cargo left behind and no increase in
freight rates or surcharges for a year.
The interesting aspect of this contract was the treatment of
the fuel surcharge. Usually
a carrier will increase its fuel surcharge to cover their cost of
bunker (fuel to run the ship) and sometimes a bit of increased
anticipation of higher costs and sometimes a bit of an increase in
general revenue. This
international trading company representative stated the rates and
services were contracted including the fuel surcharge on the date of
the contract pegged to the cost of a barrel of oil on that date.
On the first of each month during the annual contract the
price of a barrel of oil was checked and the percentage of the
increase or decrease from the month before became the percentage
that the fuel/bunker surcharge would be increased or decreased.
Are you a small business looking to increase
your export business? There
may be help available at low cost or no cost.
Wisconsin taxes are very high, so, if you fall within the
guidelines of a small business, you may qualify for a state grant to
promote your product(s) in a foreign country.
This is a grant, not a loan!
If you pay the taxes, you may qualify for the benefits.
Contact the Wisconsin Department of Commerce.
Another source of export promotion is the U.S.
Department of Commerce. They
will be happy to visit your office and tell you about low cost or no
cost programs. They can
put you in touch with members of the Wisconsin District Export
Council for specific information about exporting and/or
investigating a particular country.
A recent report indicated the balance of trade deficit was at
another record level. We
need to make a concerted effort to increase export trade.
To broaden your nautical knowledge:
JETSAM. Jetsam
is applied to a ship when she is in danger of capsizing or sinking.
Cargo and furniture are compelled to be thrown overboard to
lighten her. The ship ultimately sinks.
The floating objects thus remaining are called jetsam.
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