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    Forwarders need strong carrier relationships, warns leading forwarder

    LONDON's SBS Worldwide Ltd, an air and ocean forwarder, has urged shippers to use logistics providers with strong relationships with shipping lines or they could find their shipments left on the quayside.

    The warning comes as shipping lines have been withdrawing capacity because the industry has been suffering from over-supply of vessels on key trade lanes.

     

    If shipping lines remove services in order to balance supply and demand, it results in a short term reduction in capacity, said SBS Worldwide group chairman Steve Walker in a company statement.

     

    "When this occurs, shipping lines will leave containers behind - it tends to be those being transported on behalf of shippers with short-term supply and demand driven carrier relationships that suffer this fate," he said.

     

    "The best way to avoid being affected by a situation like this is to make sure that your logistics provider has strong, long-term relationships with more than one reliable shipping line on any trade lanes where you require transport services."

     

    There are already reports of some cargo being left behind as the result of a mini surge in cargo from China as companies attempt to export ahead of the closure of factories for the Chinese New Year celebrations, Mr Walker added.

     

    The service withdrawals come as carriers have had a tough year. Record profits in 2010 turned to losses in 2011 because of overcapacity in the market.

     

    To reverse the oversupply situation created in late 2009 to early 2010, carriers have laid up vessels, increasing month on month from November to December 2011 by 19.8 per cent caused by temporary withdrawals of services.