Maersk called Brazilian exporters to stop overbooking as this practice leads to delays when shipping goods transported in containers. In addition, Maersk said that overbooking damages exporters as well, as costs are raised, while many exporters do not find space in ships.
In a report on its operations in Brazil, Maersk reported that its exports reduced for the second quarter in a row, blaming the practice of some exporters to reserving more space in ships than they need, leaving no room for cargo for other companies.
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As Reuters reported, Brazilian exporters of coffee to Europe and the US are experiencing problems finding room on ships. This could get worse as Brazil is harvesting its largest crop ever this year. In addition, Maersk noted that a large cotton crop is also a factor that makes cargo room unavailable.
In fact, overall Brazilian exports via containers decreased 6% this quarter. A solution to this problem could to charge the space when it is reserved, but no decision has yet been made.
The overbooking started just after a number of container operators limited their trips to Brazil in 2016, due to a decrease in imports during Brazil’s largest recession.
However, this year overbooking increased following a truckers strike and a large cotton crop, as exporters rushed to reserve space.