Rates hit all-time lows in the first half, which is hardly surprising given the industry had never experienced such a widespread drop in demand - accompanied by an equally historic splurge on newbuildings.

But did these factors alone account for the precipitous fall in rates?

Over the past two days we have examined factors, which influence freight rate movement—carrier costs as well as supply and demand.

Yet carrier costs appeared to have only limited impact, and while the supply and demand factor was a more persuasive market mover, it still was not as powerful as so many assume it to be.

Today in The Container Shipping Manager we will look at another contributing factor—carriers’ marketing and sales practices and their impact on freight rate movement in container shipping.

Earlier this year, we reported on the first half results of both carriers and the terminal operators. The finding was that although both parties perform the same task—handling cargo—results were vastly different.

Terminal operators came off far better than the shipping lines, largely because terminals were able to achieve better revenue per TEU, or in other words, better rates.

To determine whether marketing and sales tactics, as well as other industry practices, have a significant impact on freight rates, we examine three criteria, all of which shed light on the differences between terminal and vessel operating businesses. What we look for are the factors that separate the two, and what provides the terminals with a more profitable environment than the one experienced by carriers.

In the first stage we will look at characteristics of both businesses and compare what the terminals face in comparison to the lines.

The second aspect is customer segmentation, and thirdly we look at the distribution and selling strategies of the carriers versus those of the terminal operators.