As advised in the maritime trade journals, a General Rate Increase (GRI) has taken effect on 01/01/12 for FCL and LCL shipments ex Asia to North America as follows;
|
Container Size
|
Increase
|
|
20"
|
$320.00
|
|
40"
|
$400.00
|
|
40" HC
|
$450.00
|
|
45" HC
|
$510.00
|
|
LCL
|
$ 8.00 w/m
|
Reduced capacity due to winter schedule and some carrier action as well as upcoming Chinese New Year have enabled carriers to enforce the GRI on both sides of the ocean. We have discussed these actions with the carriers here and with our partners overseas and have found reluctance from the carrier community to mitigate the GRI at this time, anticipating a favorable market situation caused by the upcoming Chinese holidays.
At this point in time we see a tightening of capacity caused by the carriers’ actions, with more impact on East Coast lanes. Due to good load factors meeting tight space the market is facing delays in container lift.
Although space cannot be guaranteed, booking in advance (at least 14 days or more) increases the chance of having bookings accepted and reduces the danger of rolling of containers.
We expect the market to find direction after the Chinese New Year. By then it will be more obvious how successful the carriers will be with the rate levels post-GRI and we will be able to see how strong the demand for the remainder of the contract season will be, which will then impact the upcoming rate discussions for the 2012/2013 contract season.
We will continue to monitor the market and keep you updated on how 2012 unfolds. V. Alexander/WorldBridge is committed to bringing you value and visibility to your supply chain.