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| | | December 4, 2013
Dear Customer,
Change is becoming the new normal. The recent economic recession completely restructured logistics as well as the Ocean Freight industry. The market has become much more sensitive, volatile and now requires quick decisions from both shippers and logistics providers. It has become a supply-driven market, experiencing accelerating trends and fluctuating prices. The change impacted the route structure as well: the traditional markets like Asia – Europe/North America, North America-Europe, Europe – Middle East Africa/ Asia are stagnating while routes like Asia - Latin America, Asia - Middle East Africa and Intra Asia are rapidly growing.
"In terms of routes the question is not only the shift between trade lanes but it is important to notice the imbalance of export and import activity within each trade lane. Especially since pricing levels are based on round trip volumes; imbalances between the import and export activity has a negative impact on the price level ", said Ahmet Erener, Vice President of Ocean Freight at DHL Global Forwarding US. Erener continued, "The stability of the price level is already history, just like the peak season. Peak season typically starts around August and September due to school openings and the beginning of the holiday season, however, for the past three years there has been no peak season because there were not enough cargo or orders coming in compared to the capacity in the market."
Changing industry trends have affected shipment volumes as well. Since the invention of flat screen TV's, iPods, and other blue-chip technologies, shipment volumes have decreased significantly. Instead of shipping 50 containers, the same customers are now shipping 10 of the same product in a less volumetric form. The changes are not unique to the technology industry alone; the printing industry for example is experiencing similar changes as well. "For certain products the demand simply started to decrease, like demand for printers. We are already feeling the consequences of these changes, but I am sure that with the accelerating product cycles and the high level of innovation, the logistics industry will face more challenges within the next 5-10 years", he says.
To survive and keep the market position, both customers and logistics providers need to become more flexible and diversified. DHL is committed to breaking the mold and discovering new solutions to make our customers' lives easier in this challenging economy. Launching new products like Flexitank allows us to help our customers optimize their volumes and the related costs. We developed a new pricing structure that offers for annual fixed rate pricing, minimizing the instability of volatile price levels. We also offer index linked contracts to our customers who would like to take advantage of the short term low prices on main trade lanes. Alongside our basic services we offer consolidation options for single and multi-country levels. Our Expedited Solution for LCL cargo runs direct LCL boxes from main Asian ports to Los Angeles to anywhere in the US in two to three days. We have one of the largest product ranges on the market. Our global presence enables us to offer the most competitive services and rates on the market.
Erener predicts no significant changes in the price tendencies during the next five years, he expects further fluctuation and moderately growing volumes."Our customers need to plan with these changed conditions and if they are looking for advice, I suggest them to feel free to contact our sales and Ocean Freight Product representatives to find the optimal solutions." We are always here to give the most suitable solutions to our customers when they need it.
Please view the December 4, 2013 fuel surcharge update here.
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| | | MarketingCommunicationsDGFUSA@dhl.com | Miami, FL 33126 US This email was sent to angelo.evangelista2006.schedule@blogger.com. To ensure that you continue receiving our emails, please add us to your address book or safe list.
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