News

APRIL 2016 NEWSLETTER - IT'S ALL ABOUT THE TONNAGE

In reading recent trade journals it continues to be difficult to find anything that points to a turnaround in the ocean transportation business during the next 12 to 18 months. Instead there is a litany of common indicators suggesting continued struggles:

• Charter rates have fallen steadily over the last five to six months.
• Indices in all the major trades reflect record lows.
• Most market growth is projected to be around two percent though added tonnage will increase by eight percent.

It’s the last point that is really the key. Until carriers begin to match their supply with demand they will continue to suffer the consequences of poor forecasting and lack of discipline. . . . Read the full newsletter by clicking the PDF link below.

MARCH 2016 NEWSLETTER - UNINTENDED CONSEQUENCES

There was a show hosted by Ira Glass entitled "This American Life" in which he discussed issues of the day. In an episode entitled "Pandora's Box," he talked to several people who had fallen victim to the issue of unintended consequences. He first speaks with two scientists who discovered that there is one chemical responsible for memory. In experiments where they remove this chemical, the memories of the animals being tested are erased. When they introduce their findings to the New England Journal of Medicine, they find themselves being bombarded with letters from individuals wanting their memories erased to escape the suffering caused by traumatic events that plague their lives . . . Read the full newsletter by clicking the PDF link below

FEBRUARY 2016 NEWSLETTER - ACE TO BE SYSTEM OF RECORD

By the end of this month ACE will become the “System of Record” for filings dealing with Customs and Border Protection (CBP). It is also intended to act as a portal for all trade related filings and is being phased in over the course of this year. It is evident that this portal is integral to the government’s focus and interaction with those industries and individuals involved in the ever-growing global trade and transportation sectors. It is no surprise, therefore, that the system requirements specify Windows operating system (OS) because it is still the predominant operating system throughout most sectors . . . Read the full newsletter by clicking the PDF link below.

JANUARY 2016 NEWSLETTER - A LOOK AHEAD

Though the decisions may have been made in the 3rd and 4th quarters of last year, the impact of the mergers and acquisitions of several carriers will only begin to impact the industry as we progress through 2016. While these initiatives may alter some of the rate trajectory, it is likely that without substantial reduction in overcapacity, rate depression will continue to affect most trade lanes. Projections, at least short term, within the oil industry remain pessimistic and therefore continued low cost fuel, while beneficial to consumers, will continue to affect a wide range of industries and continue to impact currencies and economies reliant on this sector for investment and stability . . . Read the full newsletter by clicking the PDF link below.