Container Index Revolution: Should it be embraced by carriers?

on 05/03/2017 - 05:06 pm

It is a fact that the wind of change does not smell the same to everyone. There are clear signs that the container industry is slowly creaking towards using price indexes in contracts, but some of the most important players still hesitate to give it a shot.
Liner carriers so far have been quite skeptical about shaking up the status quo in container pricing. The extra transparency that indexes may bring is often seen as a complication. But is that really so?
In reality, both carriers and end-users could benefit from more clarity and commitment when it comes down to negotiating contracts. The harsh truth is that container lines are caught between a rock and a hard place.On one side, they hav ...

Container Index Revolution: Is it the Time to Embrace Price Transparency?

on 03/22/2017 - 05:08 pm

Over 2000 container industry players descended upon TPM at Long Beach, end February, where one key theme I took away was the hesitancy to embrace price transparency. Existing benchmarking providers had mixed reviews depending on delegates’ interpretation of transparency.
There was no true winner but when entering negotiations with a data point, on the potential real market rate, compared to market sentiment can only be a good thing for negotiating parties. It builds trust and potential long term relationships, not just focusing on price but ensuring parties have “skin in the game”.
Pricing structures are similar to mariners navigating their ships through the peril ...

Shipping industry’s “Neither a borrower nor a lender be”

on 03/15/2017 - 06:51 pm

2016 for the most part has been a difficult year for every sector in the shipping industry: weak rates for dry bulk, containerships, offshore and even tanker vessels exacerbated the financial distress for many owners and their lenders.
Recently however the market has shown signs of hope, here and there, with freight rate and asset price improvements, but in general, the greatest hope of all has been that the worst days in shipping, likely, are behind us.
One driver in shipping that has not shown any signs of promise are shipping banks in terms of expanding their book in the industry....

Uber of the Oceans: The online Marketplace

on 12/15/2016 - 07:22 am

Article by Vasiliy Kotylevskiy of OpenSea

Shipping is a traditional and romantic industry. Ship chartering, in particular, has not experienced major revolutionary changes during the years. From the Virginia and Baltick coffee house in the City of London and the Baltic Exchange we have gone to chartering via mail, telephone, and then to telex, fax and finally to e-mail. Apparently, since the very early years, it has just changed the way of communication between the parties but the whole process has remained almost the same. When you want to fix your ship, you have to build your own network, read hundreds of emails, which might also be irrelevant with what you are looking for, discu ...