How to work with carriers and shippers tosecure capacity and stabilise rates?  Rolf Habben-Jansen November 24th, 2010
The oceanfreight market is fragmented with multiple     carrier options that are not all the sameSupply & demand will cont...
The forecasting horizon is limited……..In our view the market only has a firm 2 week forecasting horizon, based on thebooki...
Our approach to secure space……..In this dynamic & uncertain situation, supplier relationship management andyour own global...
Our approach to stability………We manage the carrier portfolioand the deals: Deals -   One and two year deals are being     m...
In closing………1. Supply & demand will continue to set the prices2. Forecasting both supply & demand is difficult – especial...
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How to work with carriers and shippers to secure capacity and stabilise rates? Rolf Habben Jansen, CEO, Damco

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Presentations from eyefortransport’s 8th 3PL Summit & Chief Supply Chain Officer Forum in Brussels, November 2010. Visit www.3PLsummit.com/eu for further resources.

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How to work with carriers and shippers to secure capacity and stabilise rates? Rolf Habben Jansen, CEO, Damco

  1. 1. How to work with carriers and shippers tosecure capacity and stabilise rates? Rolf Habben-Jansen November 24th, 2010
  2. 2. The oceanfreight market is fragmented with multiple carrier options that are not all the sameSupply & demand will continue to set the agenda in years to come No. of idle containerships 700 600 500 400 300 200 100 0 December/09 July/09 July/10 January/09 April/09 January/10 April/10 March/09 March/10 August/09 August/10 May/09 September/09 September/10 February/09 May/10 June/09 October/09 Source: Shanghai freight index Oct ’09-Oct ’10 Source: AlphalinerThe increase in capacity during 2010 has lead to decreasing rates the last few monthsPredicting both supply & demand is difficult – and the trick is to accept your ownignorance/shortcomings and focus on managing uncertainty 2
  3. 3. The forecasting horizon is limited……..In our view the market only has a firm 2 week forecasting horizon, based on thebookings placed (and a slightly longer 4-6 weeks on the supply side)It is possible to have an educated opinion on the situation 1-3 years into thefuture, however, short/medium term most people are driving blindfolded. New Containership Deliveries 08-11 250,000 200,000 150,000 TEU 100,000 50,000 0 Source: Alphaliner 3
  4. 4. Our approach to secure space……..In this dynamic & uncertain situation, supplier relationship management andyour own global organisation is key to be better than competition at gettingcargo movedOur view is very straightforward:1) Select your strategic partners2) Invest in the relationship3) Deliver on your commitments 4
  5. 5. Our approach to stability………We manage the carrier portfolioand the deals: Deals - One and two year deals are being made, usually at a premium. - The majority of the capacity is contracted for 3 or 6 months. - Spot rates and monthly rates have become more important Carriers - The portfolio is actively managed - Value pools are identified and managedOur approach is to work with you todevelop the right mix for your Two additional points:business between long and short termdeals and between carriers. Volume committment/dead-freight has rarely being used for ocean freight, but going forwardOnce we have agreed the mix we do this will change – the question is how much andour utmost to stick to the deals made whenwith all parties It is being attempted to create a ’futures’ freight market, but we are uncertain as to how significant this will become. 5
  6. 6. In closing………1. Supply & demand will continue to set the prices2. Forecasting both supply & demand is difficult – especially short to medium term3. Supplier relationship management and delivering on your commitments is what will get your cargo moved4. We will work with you to determine which mix between long and short term contracts and between carriers is the best for you! 6

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