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The weakening euro and US dollar are increasing demand for LCL (less-than-container-load) services from Asia, as shippers seek inventory cost savings. Although the decline of these western currencies was a R20;huge threatR21; to Asian exports, it favoured providers of LCL services. Exchange rates can change trade patterns completely. Shipper that might usually use a 40ft container once a month and hold stock, they might turn to a weekly LCL shipment for a greater flexibility and if demand changes they would not be left with stock. Higher freight rates on key mainline container trades are highlighting the impact of currency fluctuations. Higher full-container freight rates mean clients with 10-12cbm to ship might go LCL instead. |