Marine Finance & Insurance
aged from a train derailment, or simply stolen. Latest Impact of Containers The role of containers in shipping continues to evolve. The key word today is shortage, and the headaches for shippers are growing. With a consumer-dominated economy and a voracious appetite for imported goods, the United States has long had a trade imbalance. For many years, ships brought containers to the United States that were parked near ports. There simply were not enough export shipments to make it worthwhile for ships to carry the containers back to the ports of origin. The weakening dollar and expanded consumer spending in emerging nations has stimulated growth in the U.S. export market, however. This has increased demand for containers -- but often in areas far from ports, where the expense of trucking empty containers in has risen as fuel costs have climbed. As a Wall Street Journal article on April 10 noted, those who would like to send their products overseas are having a difficult time finding enough containers and making timely shipping arrangements. Among the examples cited in the article were: � A Wisconsin producer of lawn mowers that says it can no longer count on sales to European customers because they do not want to wait the weeks it takes to arrange shipping. � A French-fry maker that cannot find enough refrigerated containers to carry its products overseas. � Scrap metal companies that used to find their cargo in demand to fill otherwise-empty ships returning to foreign destinations but that now are competing with much higher value cargoes - chemicals and machinery - for containers. At the same time that shortages are causing shipper anxiety, the condition of containers is also becoming an issue. Many containers are showing their age and reaching the end of their useful life span. While the United States has a fairly sophisticated and well-maintained infrastructure for handling and moving containers, the infrastructure in many foreign countries is often less well developed, and transportation there places more stress on containers. Containers that have bounced through long journeys on rough roads overseas, or that have been mishandled in poorly equipped ports often arrive in the United States damaged -- and in poor shape to protect cargo. Steps that Shippers Should Take Veteran shippers have well established relationships with freight forwarders and ship operators that they can rely on to help them through their container challenges. But many smaller companies are just entering the export market, drawn by favorable exchange rates, overseas interest in their products and the flattening local demand that is accompanying today's uncertain economic climate. There are several steps that they can take to ease their way into the shipping game: 1. Get expert advice. Exporting goods is a more complicated operation than trucking products from one state to another, then submitting an invoice and getting paid. There typically is extensive international trade documentation that must be complete and in perfect order for a producer to become a successful exporter. Those who are new to shipping overseas should find a well-regarded freight forwarder to help them through the process, which will enable them to avoid the pitfalls common to interna-
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Maritime Reporter & Engineering News
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