[ APL Issues Report On Maritime Deregulation ]

APL, the global container transportation and logistics firm, has issue
d a comprehensive report on industry deregulation, which takes effect
on May 1.
“We believe informed customers are in the company’s and the industry
’s best interest,”says Torey Presti, APL’s vice president-regulator
y affairs.
“The report is designed to help manufacturers and retailers using oce
an services understand the changes that deregulation will bring in the
way they negotiate and purchase transportation and logistics services
,”says Presti. “It will be a useful tool to help customers better ta
ke advantage of important changes under the new U.S. Ocean Shipping Re
form Act of 1998(OSRA).”
OSRA ends the system of public filing with the government of tariffs
and contract terms such as rates, service terms and inland points. “P
arties can no longer rely on comparisons with competitors’ rates and
contract terms,”says the APL report. “They will need to do better re
search and internal analysis.’
Under OSRA, carriers and their customers will be encouraged to freely
negotiate confidential, customized contracts that reflect actual marke
t conditions and internet costs and strategic objectives, APL says. “
Confidentiality is a more natural way to do business,” says the repor
t, “and it will open the door to closer collaboration.”
Among the other changes APL expects: customized service packages will
begin to cover multiple trade lanes, bringing new efficiencies to cust
omers serving multiple markets. Also, packages will increasingly inclu
de specialized supply-chain-management services, including Internet-ba
sed information capabilities-a field APL has helped pioneer.
The report is part of an ongoing series of APL white papers designed t
o help customers better understand such issues as NAFTA trans-border t
rade opportunities, equipment supply and demand, and the environmental
benefits of intermodalism.