Subscribe to our free, weekly email newsletter!



Transpacific shippers may expect early “peak season”

By Patrick Burnson, Executive Editor
May 18, 2014

Transpacific container lines continue to experience a surge in eastbound bookings that began in January and is expected to continue into the second half of 2014, with vessel utilization in the mid-90% range via the West Coast and in the high-90% to full range to the East and Gulf Coasts.

To cover contingencies in the event of an earlier than usual peak season – diversifying port gateways, rerouting inland traffic, leasing extra equipment – member lines in the Transpacific Stabilization Agreement (TSA) have adopted a $400 per FEU peak season surcharge (PSS) for all shipments, effective June 15, 2014. Prior to the PSS, TSA carriers have recommended a guideline general rate increase (GRI) of US$300 per 40-foot container (FEU) to the West Coast and $400 per FEU to all other U.S. destinations, effective today, to further help offset rate erosion seen in recent months.

Both actions, TSA said, are separate from the group’s 2014-15 rate and cost recovery program for service contracts that are now being negotiated and come up for renewal on May 1.

“Carriers continue to play catch-up on rates, which have been effectively stagnant since 2011,” said TSA executive administrator Brian Conrad. “Modest revenue gains from recent GRIs will not be adequate to pay for upgraded services to meet likely demand surges in the coming months.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The dark side of the “Amazon effect” and larger impact made by the explosive growth in e-commerce may soon be seen when organized labor prepares of a massive air cargo strike.

During this webcast our panelist offer logistics and supply chain professionals a “reality check” when it comes to our current state of understanding, adoption, and utilization of the technological tools that are available to improve our operations.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 55.7 in April (a level of 50 or higher indicates growth), which was up 1.2 percent compared to March, with economic activity in the non-manufacturing sector growing for the 75th consecutive month.

Total gross first quarter revenue for XPO was up 404.4 percent annually to $3.5 billion, with net revenue up 510.5 percent to $1.6 billion. While gross and net revenue were up, the company reported a net loss of $23.2 million, or $0.21 per diluted share and an adjusted net loss attributable to common shareholders of $9.3 million or $0.08 per share.

Regardless of capacity, pricing, or the economy, trucking industry regulations are never far from the freight transportation limelight. That is especially evident when it comes to the federally mandated hours-of-service (HOS) regulations. As usual, the current state of HOS remains somewhat fluid. And the reason for that has to do with legislation coming from the Senate Transportation Appropriations legislation that is currently being considered by the Senate.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA