Date:22/05/2006 URL: http://www.thehindubusinessline.com/2006/05/22/stories/2006052200930601.htm

Back Sinking agencies

Does the shipping agency business in India face an uncertain future? The question is haunting many in shipping circles. Not without reasons though. Several major shipping lines, instead of operating through agents in India, have opened their own offices, thus forcing the agency firms concerned to down their shutters.

The mergers and acquisitions of shipping companies at the international level too will have their fallout at the local level, not always very desirable either for the local shipping agency firms or the customers. There will be consolidation of operations causing, among other things, job redundancies. The acquisition of CP Ships by Hapag-Lloyd is the latest case in point.

The present trend therefore has set in motion a new thinking among the agency firms working for shipping lines which very big at the international level. The thinking is: It is better not to be overenthusiastic about boosting business lest the principal, encouraged by the business growth, decides to open its own outfit and terminate the agency arrangement.

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