Transpacific shippers and ocean carriers have concluded their annual contract negotiation season with moderate rate hikes. Specifically, major customers have signed contracts for rate hikes averaging $100 to $200 per 40-foot container, while smaller shippers are typically seeing general rate increases of $300 to $400 per box. Strong demand in the Asia to U.S. trade lane means that carriers may again see profitability this year, similar to last year's results. However, both sides worry that equipment shortage may be the real issue during this summer's peak shipping season.
According to the deputy executive director of the Transpacific Stabilization Agreement-the discussion group of 14 of the largest carriers in the eastbound Pacific-"I believe we will see an equipment shortage in the peak season." A global shortage of steel is making it difficult for container manufacturers to meet demand. Meanwhile, intermodal rail delays that resurfaced again this past spring, especially along the U.S. West Coast, continue to worry shippers.
