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CVI Headquarters
PH 757.466.1170
FX 757.466.1823
info@cvinternational.com
Our mission is to set the industry standard by providing innovative, reliable and personalized international logistics and transportation services to our customers, and in the process, find mutual growth, profitability, and trust.
Our vision is to redefine global logistics by providing superior service, partnership, simplicity, and visibility.
2008 Ocean Shipping Outlook
The end of April usually marks the change of the Far East import contract season. The pending summer peak shipping season is also upon us. Unlike previous years, we are also facing the decline of the value of the US dollar against worldwide currencies as well as an increase in oil prices on the open market.
In the past, steamship lines have protected their fuel expense and varying exchange risk with the bunker surcharge (BAF) and this charge has been fairly stable until about one year ago. Since 2007 the price of oil has reached an unprecedented level. This, coupled with the decline of the US dollar, has resulted in ever-increasing fuel expenses for the industry as a whole.
The next contracts introduced for the Trans-Pacific trade lanes certainly will reflect this development, as carriers are asking for a minimum $900.00 increase to cover the fuel expense. The actual increase will most likely not be as high; however the trade community is also facing another obstacle for the coming season.
Due to a reduced number of imports and an increased number of exports, there will be a severe shortage of empty containers in the USA to mitigate the overall expense and trade imbalance.
While in the past it was easy to book space and obtain empty containers for exports to any destination, it is increasingly difficult to fulfill that task. This will eventually result in lost orders for exporters, as well as another shift in the export volume from the USA.
The best solution will be an open dialogue between the shipping industry and the manufacturing companies as well as the importing community to establish and implement a process allowing us to continue our trade activities on an uninterrupted level.
For more information, please contact Josef Fellhofer, Vice President, Transportation, or your CVI customer service representative.
CV International customers receive regular e-mail updates on industry news and events from CVI managers. For more information, please contact us.