Some of the problems facing maritime companies include a difficult economic environment leading to ocean carriers’ most crucial stage for tariff recovery processes. They are however applying the general rate increases or GRIs to tighten the management of capacity in the Asia-Europe trade lane. The anticipated shift in bargaining arrangements with shippers may also affect overall perceptions in the industry.
Shippers’ Advantage Current Dynamics and Negotiation Challenges
This has made it hard for the carriers to discuss new rates that will prevail next year and therefore shippers are very much favourably placed currently during negotiations. Some carriers are choosing to let their January contracts roll over instead of negotiating new ones.
Recent Rate Increases and Market Response Navigating Asia-Europe Trade Dynamics
Some key carriers such as CMA CGM, Hapag-Lloyd, and MSC are also imposing significant rate hikes on the Asia-Europe trade lane. It is still a bit premature to forecast its enduring significance, though initial hints of a growing freight tariff on the European and Mediterranean seaports prove the relevancy of the carrier’s statements.
Carrier’s price shift to control pricing dynamics and restore improved market positions. This issue will rely on ongoing negotiations, markets’ reaction to price increases and other external factors.
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Source: THE LOADSTAR
