Paul Snell, CEO British – American Shipping, warned that the recent consolidation of ocean carriers into now 17 carriers into a smaller number of alliances has been accompanied by downsizing and automation in which carriers “mimic each other” in emphasizing imports over exports and with the unintended effect of “devaluing” U.S exporters.
This consolidation is causing international trade to favor imports over exports to the United States and is creating long-term obstacles for U.S. exporters.
However, Snell emphasized that challenges faced by exporters can be mitigated by investing more in marketing their products abroad including in their logistics staff. Exporters must accept that as import freight rates rise so must export freight rates.
Snell said logistics experts play an increasingly important role in ensuring exports arrive in a timely manner and that shippers who emphasize the lowest price are likely to experience the negative results of what they did not wish to invest in.
Snell said that exporters needed to invest in their relationship with trucker and rail partners and have a reserve of truckers who could help provide support in case of an emergency.