A need for better co-ordination between players in the container shipping market was the main message that emerged from the liner shipping forum held as part of the Asian Voice in World Shipping session at the Sea Asia event in Singapore in April. Kenneth Glenn, president of Singapore-based container ship operator APL, said while container ship operators have sought to cut vessel operating costs, port-related costs are a major challenge. "My biggest concern is port and container handling costs which are high, especially in Europe and the US. We have allowed inefficiencies to creep into the system. A lot of these issues could be resolved through better co-ordination," Mr Glenn commented. He said that while fuel prices have fallen, ports have raised charges and terminal handling charges so that intermodal costs are taking up more than SO per cent of a vessel's voyage operating costs. "Over 50 per cent of our cost base is from terminal handling and intermodal costs. While vessel and voyage costs are declining thanks to continuing investments in more efficient ships, land costs, especially in the US, are increasing." Trucking and other landside costs are increasing. Under the present environment, vessel ownership and operating costs, which include bunker costs, take up about one third of a vessel's operating costs.
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