IN the current high-cost environment, shippers and carriers will need to work together in order to avert volatility ahead.

When considering the onslaught of surcharges that lines impose on their customers to recover costs at present, particularly in relation to bunker surcharges, the higher cost scenario that shipping lines face will directly impact the bottom lines of their customers too.

On the other hand, overcapacity is expected to hit carriers in the years to come, and hit in a big way, which may cause shippers to hit back by pressuring lines to reduce rates to unsustainable levels, which could lead to all-round ill feeling.

The two sides will need to find some common ground to move forward and avoid a volatile market, which is not good for either side.