As of April 1, 2017 new ocean carrier alliances will begin operations, consequently impacting importers and exporters around the world. With a common implementation date and various processes to change, the international trade community is bracing for potential port and terminal disruptions.
Over the past couple of years ocean container lines have formed into four mega-alliances, largely to create economies of scale. By sharing space on mega-vessels, carriers benefit from lowered operating costs due to the sheer volume. Currently, the G6 and CKYHE alliances hold the majority of the capacity on the Trans-Pacific Eastbound trade lane. However, with the pending CMA CGM purchase of NOL, a portion of the G6's share could be shifted to the Ocean Three.
Cargo insurance is always the best way to safeguard cargo while it is in transit. Still, an often-overlooked way to "insure" cargo is to properly load the container to protect freight while it is en route to the final destination. Below is an outline of the best practices for loading cargo into a container set for an international journey.
Growth in international trade has prompted ocean carriers to build mega-ships, expanding vessel capacities to 20,000 TEUs or more. In comparison, the first container ship transported only 58 intermodal containers from the Port of Newark to the Port of Houston in 1956. How is the increase in vessel size forcing the industry to evolve?
Topics: Ocean Freight