Shipping lines set to decide if container e-module's a success

The Federation of Indian Export Organisations (FIEO) has launched a container demand e-module to address the problem of container availability to exporters. Its success depends on how shipping lines respond.

The FIEO says the e-module is a first-level marketplace where exporters can post their container demands online, which will help in ground-level assessment of containers required in the country.  The web link fieo.electronbridge.com:444 has gone live and Indian exporters have started posting their container requirements for various origin-destination pairs. The container requirements are also visible to shipping lines, freight forwarders and others so that they can express their interest in fulfilling them.

At present, severe container shortages have slightly eased but it is the exporters who are busy chasing shipping lines and freight forwarders for their container needs. In the short term, it is unlikely that shipping lines will be looking out for those needing the containers.  In due course, however, better information on demand from exporters may help shipping lines reposition empty containers better. To that extent, the initiative of the FIEO is a good start.

The e-module requires exporters to furnish details of the place (i.e. the port or the Inland Container Depot) from where the voyage will commence, the details of the destination port, type of container required, number of containers required and in how many days the containers are required. A link is given for interested parties to connect with exporters.

From the requirements posted so far, it appears that many small exporters, needing one or two containers within a week, are vying for the attention of shipping lines or freight forwarders. However, there are few exporters requiring large number of containers. Also, quite a few want containers after two weeks. In fact, exporters requiring containers after three or four weeks have also posted their requirements. Not much can be inferred from the posts so far, as the e-module has been started recently. Over time, if the e-module does become a marketplace for matching supply and demand for containers, useful information can emerge from analysis of the data posted.

The FIEO says the e-module will help exporters negotiate competitive quotes for their requirements. That is likely to happen when many shipping lines are trying to track down shippers and get their business. Hopefully, those days are not far away. For now, exporters, except the large ones having long-term relations with shipping lines, have no option but to take the freight rates that shipping lines or freight forwarders quote.

An electronic marketplace where buyers and sellers of ocean transportation service come together in a transparent manner is ideal.  The FIEO can take its new initiative further and build sophisticated features into its e-module. In due course, it can be extended to other transportation services such as air transportation, courier service etc. However, much depends on the interest that shipping lines or airlines or courier services show in supporting such an electronic marketplace.

Email: tncrajagopalan@gmail.com