Hapag-Lloyd: a 'pretty good first quarter' – but trend for 2025 'pretty uncertain'
As it presented its first-quarter financial results today, Hapag-Lloyd cautioned that any cargo surge following ...
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By Mike Wackett
Hapag-Lloyd has become the latest container line to cut forwarding agents’ commission (FAC) as it tightens its belt for a challenging first quarter next year.
Many forwarders still rely on traditional FACs from carriers, but it is a practice that is fast dying out as the lines seek to squeeze every last drop of cost out of their operations.
One UK forwarder told The Loadstar FACs from carriers were being “continually eroded” and in some cases had been withdrawn. He said: “FACs ...
Comment on this article
John Roberts
December 03, 2015 at 2:26 pmIf you are a forwarder who relies on 2.5% FAC on rates which aren’t much more than $500 on the FE trade then you are in trouble
Mike Wackett
December 04, 2015 at 7:46 amEvery little counts for a small forwarder John.
My source here deals with Africa, where rates are higher and consequently a cut from 5% to 2.5% or zero has an impact.
And clearly Hapag recognise FAC as a cost that they can now ill afford.