News Letter by 20Cube Logistics (Australia Team)
Rush for spot contracts cause shipping chaos
The economic fallout of the Covid19 pandemic continues to wreak havoc in the global economy and the latest casualty is the shipping trade with carriers rushing to cash in on spiraling demand. As a result, schedules are being disrupted with contracted cargo shipments being given second preference ahead of spot bookings that fetch freight price premium.
According to industry publication The Loadstar, Asia-US demand continues to surge, and Beneficial Cargo Owners (BCOs) are struggling to ship contracted cargo. They are increasingly turning to Non-Vessel Owning Common Carriers (NVOCCs) to support fractured supply chains.
It seems carriers have become an unlikely beneficiary of the global health crisis. The Loadstar reports that carriers are finding bogus reasons to refuse the release of equipment at depots in China, in addition to rolling contracted containers without notice.
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Evolve with the world
As the world breathes a collective sigh of relief approaching the last month of what has been a disastrous year for business, the light at the end of the tunnel is the announcement that a vaccine for Covid19 is now a reality and will help end the global pandemic sooner than later.
This is the news the world in general and business in particular has been yearning for over the past 12 months. It is now a matter of time before normalcy returns even though the new normal will be very different from the one we have been accustomed to.
As the world adapts to change, so has the way we do business. Never before has there been so much focus on streamlining and simplifying business processes, while at the same time strengthening security in cross border trade.
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