Feeder operators fear flood of laid-up vessels

FEEDER companies say the reintroduction of laid up tonnage could destroy the favourable operating environment created by volume and rate increases on mainline services.

Singapore's Bengal Tiger (BTL) chief executive, Bill Smart, whose ships run between India, Port Kelang, Colombo and Singapore, said the current rate structure is crucial to recovering from last year's heavy losses.

The biggest danger for companies like BTL, London's International Freighting Weekly reported, was the prospect of main lines succumbing to the lure of higher rates, and taking ships out of slow-steaming or lay-ups, which would bring lower rates and a cascade of tonnage into feeder trades.

Global operators like Sea Consortium have taken steps against this by purchasing larger vessels to quickly take the place of smaller ships in the event of sudden tonnage increases.

Singapore-listed Samudera Shipping Line meanwhile decided to allow some of main-line charters lapse, so as to allow them to expand their intra-Asian feeder network, leaving long-haul strings to larger operators.

(Source: www.schednet.com)