COSCO
SITC
PACIFIC LINES
Thursday, 22/10/2020, 09:02 (GMT +7)
505
Carriers use digital technology to limit the opportunities of freight forwarding companies
Container shipping lines are using their online platforms to move shippers away from freight forwarding companies and shift them to direct relationships with the carrier, according to freight forwarding sources in Europe and India.
Kuehne+Nagel welcome competition with carriers, as other forwarders criticise lines for shutting forwarders out. Photo: Kuehne + Nagel
Reports from forwarders claim that COSCO, CMA CGM, Maersk and Hapag-Lloyd are all seeking to reach shippers directly either through digital platforms or through a secondary bill of lading (house B/L).
One forwarder complains that carriers have moved empty containers from their home country resulting in a shortage of empty equipment, and carriers have also made it difficult for forwarders to serve their customers.
A European forwarding company told Container News that COSCO Logistics competes directly with its company and that if it ships its customers from China to the United Arab Emirates, it will normally be issuing two bills of lading, one carrier bill of lading and one house bill of lading. The bill of lading of the forwarding company shows the names of both the shipper and the consignee.
According to the forwarder, COSCO is currently issuing their own house bill of lading, "that is limiting our opportunities", the forwarder said, adding that Maersk is also doing. Similar moves, "We are trying to avoid using both Maersk and COSCO" the forwarder added.
Meanwhile, in the Asia Pacific region, logistics resource management firm GoComet says carriers are promoting their online digital platforms to outdo freight forwarders, for example both Maersk and Hapag-Lloyd.
According to Gautam Jain, CEO of GoComet, carriers have encouraged shippers to book directly through online portals, and some customers get lost in this way.
However, Jain also pointed out that, “Many shippers prefer to use freight forwarders because they get a better, more personalised service, so if there are problems they can talk to a person and the credit terms are significantly better with forwarders”, he said.
However, with Otto Schacht, global ocean freight manager for Keuhne + Nagel, the largest forwarder, did not find any problems, the forwarder had been competing with Maersk for 20-30. this year, "but we love each other," he said.
According to Schacht, Maersk has been making these moves for a while, “I know that other forwarders have had problems” admits Schacht, but he said Kuehne + Nagel has such volume that they Have to move freight around its main shipping lines, he said.
No carrier had responded at the time of going to press.
Phaata (Adapted from Container-News)
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