Plant food

In just a few short weeks, news reaches us of the beleaguered Asia-Europe trades having a renaissance with a number of lines announcing resumption and creation of routes; freight rates are being restored at a rate of knots; and talk of laid up ships coming back into service is rife.

But take heed, that lone green shoot needs nurturing, not overlooking. It needs tender care and a concentrated care plan. Being fed by too many people too often will kill it with love; allowing it to fend for itself will lead to the same end. And if all involved in the industry rush for the same goals without paying heed to the actions of others, that green shoot will be well and truly snuffed out for good.

Has all that talk of the alphabet recession been in vain? The warnings on the very real prospect of double dip recession should now be at the forefront of shipping lines’ minds. We are undoubtedly surfacing from the trough that has suppressed container trades for the past 18 months, but the elation of the ‘recovery’ could be short-lived if shipping lines do not act responsibly, and, just an importantly, inclusively.

And ports and terminals have a part to play here too. One eye need to stay firmly focused on the financial measures put in place to aid suffering container clients – lower tariffs, berthing discounts, delayed payments and the like. The line between assisting and supporting is very blurred and there will come a time, in the short term, when those financial aids may actually start to damage the tentative recovery by allowing lines the financial flexibility to boost business too fast and too soon.

Communication with customers will continue to be important, and it will take a brave terminal to reduce or remove financial aids when those around them are maintaining theirs. But sometimes a dose of tough love is exactly what’s needed.

Keeping the green shoot alive is one thing; helping it to blossom into something less fragile and more long term will take collective effort. Do we really want to return to last year’s slump so quickly?