APL Explores New Trade Route

Posted : 02/11/13 7:05 AM

With the establishment of a fresh European president, Singapore-based APL is seeking new trade opportunities in the European market. The subsidiary of Neptune Orient Lines has recently started researching original opportunities in the European market to add to its already vast portfolio of services offered to European consumers. Already noted for its reliability and fast transit time, APL seeks to bring this established name to additional European markets in the hopes of stimulating trade in the region and offsetting expenses that plague the Europe-Asia region regarding shipping costs. APL has hopes that these diverse markets will return viability to the company’s oldest operating region. Earlier this year, APL applied a General Rate Increase to the company’s Transatlantic Service in order to balance the rising costs associated with transatlantic shipping. Rising costs along with decrease in freight rates had forced the shipping company to raise the fee on standard dry equipment $500USD above its previous level. Using the same strategy in Europe may not be feasible due to the availability of lower-priced competitors. Such a move could only cripple the company and leave it vulnerable in the region. The alternative of exploring new markets for APL to offset its costs, and perhaps even make the region profitable, is a much sounder strategy. The long history associated with APL makes it a company which had the benefit of experience behind it. APL’s shipping costs have risen dramatically recently, and world economic downturn and recovery is taking its toll on the company. The development of contemporary European markets has the advantage of spreading out the risk associated with shipping ventures as well as allowing the company to reach further targets as far as economic growth is concerned. This reach would work well for APL and would allow them to employ more of their innovative fuel-efficient ultra large container ships when they come on-stream. Combining recent technology with the expected growth of the European Market is a bold and promising step for the company. Although APL is old, it is by no means a dated company. The problems facing APL are not recent nor are they unsolvable. It is likely in the near future that APL will be able to see returns from this program to develop the European market and combined with the expected savings from the fuel efficient ships, APL could soon see a change in their fortunes and a boom in their economic growth.