stringy:
Rates on containers are worse than usual due to the downturn, it’s all down to supply and demand, the lack of business meant that the shipping lines cut their rates to attract what work they could to cover the cost of operating and in turn offered the work to hauliers at the lower rates, it’s a case of you 1)taking the cut and continue to cover your overheads until rates increase, 2)finding other work for your trucks (not much about) or 3)calling it a day.Some subbing to larger container hauliers think that they’re being ripped off by the bigger player, that’s not the case as most of the larger firms have sacrificed own trucks and drivers and retained subbies, admittedly at lower rates but that’s only because the pain is being shared, it’s either that or the big player takes the hit and subs the work at more than he gets and puts his business in jeopardy and sometimes the business of the subcontractor.
Times are crap all round unless your the person actually importing or exporting the goods.
Well put. I know that one of the large container hauliers is currently applying much thought into supporting its sub-contractor base more effectively, and to increase their numbers sustainably.
Of course, the lines themselves are losing money on an exponential scale, and something like 22% of the global container shipping capacity is laid up. They are trying to keep as much business as possible on the ships still operating, and are working for suicidal rates over the whole journey of the box in order to generate at least some revenue.
The general trend still seems to be for lines to lose the import haulage work to the freight forwarders, though, and which brings a whole raft of its own problems for the lines in their efforts to manage both the container inventory and the haulage for export bookings.