Transpacific shippers may expect early “peak season”

By Patrick Burnson, Executive Editor
May 18, 2014 - LM Editorial

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

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

In recently issued research and data, JLL pointed out that its market data indicates rents are on the rise, with companies on the hunt for warehouse and distribution space.

U.S. Carloads were up 0.3 percent annually at 290,963, and intermodal at 260,893 containers and trailers dropped 2.4 percent compared to the same week last year.

Researchers say the ships are operating in international waters with a "worrying lack" of regulation, adding that they could pose a threat to regional peace and stability.

Compared to November, spot market freight volume was up 3.0 percent, according to the DAT North American Freight Index.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA