News & Events

Continued success and growth

Due to continued growth at Westbound Shipping Services, it is with great pleasure we announce our newest addition to the team - Mr Daryl Graves.

Daryl joins us, as our new Operations Supervisor - after being a previous colleague. This means he is well experienced in our way of working, as well as being fully operational using the same Freight computer system as Westbound. Daryl's role is to offer support to Westbound staff and our growing customer base using all modes of transport worldwide. Over the next few weeks, Daryl shall be getting to know each of our customers and suppliers personally by an introduction.

If you have any questions please do not hesitate to contact us or Daryl directly at daryl@westboundshipping.com

Fuel increases hurt uk hauliers

Hauliers in the UK have had to find an extra £1.3 billion (US$2.1bn) over the past 12 months just to cover the rising cost of fuel. According to the Freight Transport Association (FTA) Cost Information Service, the 12p per litre increase in the cost of diesel since July 2010 has pushed up the annual cost of fuelling just one 44-tonne truck by £5,700.

And the FTA said the industry was feeling "anxious" about the impending fuel duty rise of over 3p per litre planned for January 2012. James Hookham, the FTA's MD of Policy and Communications, said: "Many companies in the logistics sector are approaching a tipping point and simply cannot afford to absorb the high fuel costs that they are facing.

"The government could help by deferring the duty increase planned for January and making cuts in duty rates now. "It wants to know what it can do to help growth in the economy? Here is our number one ask

"In March, the FTA and its partners in the Fair Fuel UK campaign influenced the government's decision to defer a planned 1p-above-inflation fuel duty hike and to actually reduce the duty by 1p per litre.

The lobbying effort effectively saved the logistics sector around £625 million in tax, alone, it said. With diesel representing 40% of the cost of running a truck, the FTA added: "Carriers are struggling to pass on higher costs resulting from rising crude oil prices, any future fuel duty rises will make commercial viability all the harder for the hard-bitten logistics sector and will further impede the UK's economic growth prospects."

Shipping line profits falling

Shipping line OOCL saw its first-half 2011 profits drop by almost 40%, thanks to depressed rates on the Asia-Europe trade, and expects only limited improvements during the peak season.

The Hong Kong-headquartered carrier's H1 operating profits dropped 39%, year on year, to US$188 million, while revenue fell 6.8% to $2.9 billion.

Despite the decline, the group said its profits were at an acceptable level. It said that the decline was primarily down to too much capacity being added to the market – particularity on Asia-Europe – rather than a softening of demand.

It added that capacity deployment issues in the industry were likely to continue in the near term, and the traditional peak-season lift in demand may provide only limited improvement, at best, in average freight rates over the remainder of the year.

And it said there were concerns about how the economies of Europe and the US would perform as the year continued.

Chairman of OOCL's parent firm, OOIL, CC Tung, said: "There is uncertainty as to how strong consumer demand in the US will be over the Thanksgiving [November] and Christmas retail selling seasons this year, following the recent termination of the US government's fiscal and monetary stimulus programmes.

"While the economies of northern European countries are performing well, the support needed for those members of the Eurozone with excessive levels of sovereign debt may constrain consumer demand.

"Overall, this will make for continued difficult trading conditions in the second half of the year, with no relief from high oil prices and increased energy-related costs expected."

The decline in profit should also be considered in the context of how other carriers have performed so far in 2011, with many seeing profits in 2010 turn into losses this year.

In late July, MOL, K Line and NYK all posted losses for the first quarter of their fiscal year, while CSCL warned shareholders to expect a loss during the first half.

Cargo ship sinks in thailand

A cargo ship sank in Udom Gulf harbour, off Thailand's Chon Buri province, yesterday morning local time, after colliding with another vessel.

There have been no reports of casualties.

According to local reports, Chon Buri marine police said a large cargo ship, registered in Panama, the Unison Vego, was manouevering to anchor at Siam Seaport Harbour in Udom Gulf when its engine shut down and it collided with the Ocean Tower, another cargo vessel anchored nearby.

The collision created a hole in the Ocean Tower and it sank as water flooded into the cargo hold.

Marine police told reporters that the 20-strong crew on the ship had been safely evacuated. Besides loss of the ship, cargo damages were expected to be very high.

Peak season surcharges to follow

Carriers believe they will finally be able to implement a peak-season surcharge (PSS) in the coming weeks as retailers start to stock up for Christmas.

Rumour has it that shipping line members will impose a PSS of $200/teu from 1st September PSS was intended to be applied for all sailings from 15 June, but it was delayed for several months because market conditions were not strong enough for carriers to push the price increases through.

However retailers are beginning to restock for the back-to-school and festive holiday seasons and businesses are resuming global sourcing of materials and components.

Carriers have recently experienced a steady increase in traffic that suggested steady, stronger demand in the next three months.