So Much For Shipping Contracts
We all thought it was unacceptable for Asian mills during Q4, 2008 cancelling orders and/or renegotiating prices when material was in transit, but this quarter, the shipping lines have decided that bookings mean nothing nor confirmed ocean freight rates.
Like many businesses, shipping availability is subject to demand, and as usual, low value recovered paper is no longer needed to top up empty export slots and is being cancelled without warning and either blamed on equipment shortage or the need for higher freight rates to carry.
Considerable time is spent to negotiate rates, place firm reservations and to finalise both suppliers and buyers contracts.  When the materials are ready to load then cancelled by shipping lines, the entire process starts again with the middle man shouldering the blame and often resulting consequential losses with reputation, additional storage, bank charges and further negotiations, which in these market conditions, is not welcomed.
On behalf of the small shippers we apologise in advance and trust that you can understand that this is completely out of the shippers control and all parties are both inconvenienced and out of pocket. Better times will return and even recovered paper shippers will be essential again.