Carriers React Swiftly to Import Growth, Peak Shipping Rates Increased

Jun 28, 2010, 13:50 ET from The Journal of Commerce

NEWARK, N.J., June 28 /PRNewswire/ -- For the first time in three years, market conditions favor ocean carriers and they are quickly using their advantage to recoup some of their $15 billion collective loss of 2009.  U.S. importers, although enthusiastic about rising market demand, are growing increasingly concerned over the ability to ship efficiently and cost-effectively.

(Photo: http://photos.prnewswire.com/prnh/20100628/NY27688 )

(Photo: http://www.newscom.com/cgi-bin/prnh/20100628/NY27688 )

The National Retail Federation projects retail import shipments in the June-October period will increase up to 15 percent compared to the same period last year, reports The Journal of Commerce this week. 2009's cutbacks and trend toward conservative planning have left vessel space and available containers limited and ocean carriers are leveraging this to raise freight rates and surcharges and take advantage of less-than-tightly-worded contracts.

"They're out to make up for all of last year's losses this year," said Hayden Swofford, independent administrator of the Pacific Northwest Asia Shippers Association.

During the week of June 21, Drewry Shipping Consultants' Container Rate Benchmark for non-vessel operating common carrier spot rates from Hong Kong to Los Angeles reached $2,607 per 40-foot containerload, the highest point in the benchmark's five-year history and nearly 300 percent higher than prices last June.

As of June 18 the comprehensive reading on the New Shanghai Container Freight Index – which tracks average spot rates for exports moving from Shanghai in 15 trade lanes – was $1,569.04, 56.9 percent higher than Oct. 16, 2009.

This week's Cover Story discusses the approaches carriers are taking to bring balance to their budgets and the impact on trans-Pacific shippers, a driving force for U.S. trade and transportation.  

To view daily news visit www.joc.com. For all media enquires, including article reprints, please contact Editorial Director Paul Page.

Since 1827, The Journal of Commerce has been the most trusted source of intelligence for international logistics executives to help them plan global supply chains and better manage day-to-day transportation of goods and commodities in the United States and internationally.

To become a member of The Journal of Commerce click here. JOC members have access to our weekly print and digital magazine and Web site, as well as a 10% discount on all JOC Events and trade shows, UBM Global Trade Directories and select PIERS products. Authoritative editorial content in the form of daily news, weekly analysis and regular features ensure our members have the information and data necessary to understand the issues facing trucking, rail and maritime transportation. Members enjoy access to "By the Numbers," an exclusive weekly compilation of key industry statistics that provides detailed views of current market trends across all modes. Regular market intelligence reports -- utilizing PIERS trade data -- include Top 100 Imports and Exporters, quarterly Top 40 Container lines, Transpacific and Transatlantic Maritime Forecasts and Top Container Ports and Terminals. Market-sector supplements, including Breakbulk, Cool Cargoes, 3PL, JOC Guide to Trucking and others, ensure all modes are comprehensively covered.  

About UBM Global Trade - UBM Global Trade, formerly Commonwealth Business Media, Inc., has been the leading provider of proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide since 1827. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, The Journal of Commerce Events, PIERS Global Intelligence Solutions and an array of international trade and transportation databases and directories. UBM Global Trade, a subsidiary of United Business Media Limited, is headquartered in Newark, NJ, with offices throughout the United States and in Canada and Hong Kong. For more information, explore www.ubmglobaltrade.com or call 877-675-4761 (+1-847-763-4932 outside the U.S. and Canada).

SOURCE The Journal of Commerce



RELATED LINKS

http://www.joc.com