The confluence of global economic weakening and widespread carrier problems offers shippers a rare rate opportunity. As 2008 came to a close, world markets were in slow-motion freefall, retail spending was off significantly, and overcapacity was the prevailing condition of virtually every transportation mode. But how long this opportunity will last depends on the duration of the present economic doldrums. Now may be the time to review all carrier contracts and strike while the iron is hot. In terms of the intermodal situation, the leverage is even more in favor of the shipper. However, with business downsizing and some going bust, the rate situation might most probably stay stalled – since the drop in capacity has been matched by the drop in shipper volume and fuel surcharges are no longer an issue. Nowhere is the capacity glut more apparent than in the air and ocean freight sectors; in fact, ocean rates slipped by as much as 30 percent last year due to a combination of factors.
