CAST FOCUSES ON LOADS’ PROFIT MARGINS
Cast, the Montreal gateway operator, has introduced a policy to focus
more on the profit contribution of every individual shipment.
Peter Seminck, chief executive officer of Cast, said information
technology softwares were implemented at the end of last year to enable
Cast to calculate the contribution of shipments before the booking is taken.
Seminck said that it is vital for an ocean carrier to be able to monitor
not just freight rates, but also shipment contributions after intermodal,
equipment positioning and other costs.
For a shipping line, looking only at freight rates "is like driving in
the dark," he said.
Given the current bullish westbound transatlantic trade, where Cast and other
Atlantic carriers are fully booked, Cast "can pick" cargoes that
optimize its own equipment situation and returns, he said.
In the eastbound direction, Cast’s ship load factors are about 80
percent and freight rates in the marketplace are currently falling, the
carrier said.
Cast predicted that its westbound rates will exceed eastbound prices
next year, for the first time in several years.