Freight rates in many eastbound trans-Pacific service contracts have been renegotiated lower as carriers seek to prevent customers from bailing on them to take advantage of plunging spot rates.
Essential Reads
Sharply falling rates and demand signal an end to the extreme profitability enjoyed by carriers over the last two years, according to analysts.
The ability of ocean carriers to manage their growing supply of excess capacity is becoming weaker by the week as supply chain bottlenecks ease and global economic headwinds strengthen.
If there’s one lesson from the pandemic, it’s that working to ensure efficient container flow through US ports during sustained cargo surges must be the highest priority, whether it’s achievable or not, writes JOC’s Peter Tirschwell.
The cargo surge that began with the COVID-19 recovery in mid-2020 forced US ports to develop a new playbook to cope with the unprecedented port and inland supply chain congestion that resulted, according to APM Terminals.
Commentary
OSRA-22 not designed to control freight rates: NITL
Pausing to look back at supply chain prognostications
More Commentary