Liner Heavyweights Sail In For Some Tough Transpacific Contract Talks

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Some 4,000 container shipping industry attendees are assembling at the Long Beach Convention Center in California for the biggest ever S&P Global TPM24 conference and networking event.

Buzz at Hyatt Regency

There is a buzz at the Hyatt Regency reception and TPM registration desks as industry partners from North America and the four quarters of the globe meet up and plan their conference sessions, meetings and networking events.

Indeed, the view ahead of this year’s four-day TPM is that BCOs, NVOCCs and forwarders will be extremely reluctant to agree carrier requests for significant rate increases supported by inflated spot rates.

Benchmarking data

According to Xeneta’s freight rate benchmarking data, spot rates between Asia and the US west coast have skyrocketed 170% since December, to an average of $4,433 per 40ft, while Asia-US east coast rates have jumped 133%, to an average of $5,778 per 40ft.

However, there has been a slight softening of rates in the past month, by 8% and 7% respectively, for the west and east coasts.

However, the big increase in west coast rates is obviously unconnected with the diversions, but is being attributed mainly to a contagion impact of tighter supply and, to some extent, a fear of the current disruption becoming another Ever Given-sized event.

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Source : Loadstar