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            december 11, 2018

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Indiaexportnews.com

Shippers differ on how transpacific rate talks are going in 2018

  12.03.2018    

Major shippers differ on how transpacific contract freight rate talks are going this year, according to a survey by the Gemini Shippers Association and IHS Markit, reports American Shipper.
Their collaborative paper on the survey found that 41.2 per cent of respondents expect an increase, 29.3 per cent expect no change and 26.6 per cent see a decline coming.
The same survey found a majority of shippers are expecting total transport costs for their overall supply chain to be higher this year.
For their overall transport spending estimates, 62.7 per cent expected an increase in 2018, while 22.4 per cent expected no change and 11.9 per cent expected less spending.
"While price remains the main contract driver, consideration of service dependability, customer support, technology, and carrier stability rank high on the checklist," the report said.
The report also noted how 36.2 per cent of those surveyed believe carrier service had declined over the past 24 months, with the same percentage saying service is the same. Only 8.6 per cent said it improved.
Many shippers looking to have products transported from Asia to North America are now in the process of negotiating 12-month contracts that begin May 1.



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