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Carrier Struggles Force Them to Consider Taking Away Popular Perks

Updated: Mar 24, 2021

Historic consumer demand, scarcity of carrier space and the lack of equipment to transport goods has caused shipping companies to take a hard look at what they promise and deliver.

Shippers are struggling to accommodate consumer demand, and carriers are having difficulty moving record-setting amounts of inventory, which is causing severe and consistent delays. The latest statistics show that global overseas shipment schedules are just 34.9% reliable.

These delays are forcing carriers to reconsider all the promises they have made to clients because they are having a difficult time delivering. As a result, most perks that importers have come to expect over the years are being taken away in order to streamline the services offered during the surge in volume. Some of the incentives carriers are eliminating in order to alleviate unnecessary burdens include free storage, guaranteed chassis, door delivery, and the handshake deals between longtime collaborators.

"The pandemic has changed the way business in the industry is done,” said Peter Hsieh, Vice President of Sales and Marketing for OEC Group’s Northeast Region. “Unfortunately, customers can no longer expect the reliable services they have grown so accustomed to in prior years without paying a significant premium.”

But there is some hope for importers. OEC Group has already started offering their own priority product service that helps expedite many of the bottlenecks currently being experienced by importers in the market. Some of the services include priority on-board, faster ocean freight release, dedicated customer service and cargo insurance.

“The way volumes have risen during the past year, carriers are no longer willing to provide extra services,” said Anthony Fullbrook, president of OEC Group's North American region. “While we cannot offer clients all the services carriers provided in the past, we can use our considerable buying power and influence to make the loss easier to handle.”
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