Tight Capacity, Service Delays Make Space Guarantees Central to 2010 Shipping Contract Negotiations, Reports The Journal of Commerce

NEWARK, N.J., May 3 /PRNewswire/ -- Growing demand in a recovering economy is causing widespread problems for manufacturers and retailers in getting transportation equipment and service for international shipping, The Journal of Commerce reported in its May 3 edition. The concerns over shipping delays have more companies raising capacity and service issues to the forefront of contracting for space this season, increasing the prospects for higher pricing and shipping costs.

(Photo: http://www.newscom.com/cgi-bin/prnh/20100503/NY97855 )

The strength of the economic recovery took all parties by surprise and led to heated contention over recent lengthy delays at Asian ports. With speed to market crucial to U.S. importers eager to participate in growing consumer confidence, many companies are making space guarantees their priority in the annual negotiations for the eastbound Pacific service contract, which sets the foundation for business during shipping's busiest period.

"Right now, people are paying unbelievable prices to guarantee space. There's a bidding war going on," said Dave Akers, managing director of the Toy Shippers Association, which negotiates service contracts for its members.

This week The Journal of Commerce Cover Story discusses the impact of the winter Asian-trade-lane delays on pricing and loyalty, increases in capacity forecasted for 2010 and what this means for shippers and carriers alike, as all race to ride the current rising tide.

Cool Cargoes – the JOC quarterly supplement released this week – analyzes the refrigerated export side of the equipment and rate concerns. A rapid recovery in refrigerated exports led to tighter capacity and rising rates, and many wonder how long exporters' equipment shortages will continue. Cool Cargoes is the definitive source for insightful, meaningful discussion about the refrigerated supply chain.

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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.

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SOURCE The Journal of Commerce