Press Release
ESC Sets Framework for Future Partnerships
21 April 1997
Speaking at the International Symposium on Liner Shipping in Hamburg today 21 April Mr Mansell, Chairman of the European Shippers' Council, commented, "There is nothing more natural in the world for customers and supplies to want to talk to each other about their markets and their commercial and business needs". He stressed however, that "It is both misguided and unrealistic to believe we can return to those halcyon days of self regulation and institutionalised consultation arrangements that existed in the 1960's, 70's and 80's."
Trade is becoming more globalized and as a result, more competitive. The answer for both the European shipper and shipowner lies in forming intimate business partnerships in a deregulated and competitive market. Shipowners must recognise competition and the market has now replaced the largely discredited policy of sectorial intervention and the old fashioned concept of industrial policy formerly adopted by government. Mr Mansell said dialogue should not and cannot be a substitute for special treatment under competition rules or some sort or resolution of disputes mechanism. Shippers want to forge ever closer commercial partnerships with those transport providers who share common business outlooks and objectives. These objectives must include building markets, reducing and compressing costs in supply chains and improving efficiency.
If shipowners are prepared to treat shippers as individual customers with unique needs to be met, they will become more successful and so gain market share and better profitability. Institutionalised consultations on rates and tariffs are out of date with modern business needs. The future must be about customised and confidential rates and conditions which are to the benefit of both sides.
The solutions to the problems of the liner shipping industry are fundamentally commercial and must be addressed by the shipowners themselves, not their customers. Success depends on serving the customer and not on self regulation as a means of propping up antiquated market structures which are contrary to the competitive pressures of globalization.
Mr Mansell added that, "Those shipping companies that tantalize shippers with their customer orientated approach, excite with their innovative service and amaze with the simplicity of their pricing packages, will see relationships dramatically improve. This can only happen when there is a more mature dialogue between shipowners and their customers".
Dialogue is the future must be based on providing added value to shippers and shipowners and should be based on commercial considerations.
Mr Mansell said there is much to be gained from establishing a ne framework for a joint industry forum where the commercial parties - shippers and shipowners - can develop best practice and other initiatives to promote industry improvements. ESC would be more than happy to be a catalyst for such a forum for similar minded shippers.
For further information contact: Nicolette van der Jagt, Secretary General of the ESC - Brussels 00 322 230 2113
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