February 26, 2015 – As expected, Eastbound Pacific carriers are announcing two rate hikes on the heels of the resolution to the West Coast labor issues.
Bill Mongelluzzo, Sr. Editor of the Journal of Commerce (JOC), confirmed carriers’ intent to raise rates $600 per 40-foot container starting March 9th, with an additional $600/container planned for April 9th.
According to the JOC article, 15 of the largest container lines involved in trades from Asia to the US are seeking additional revenue to begin repairing their networks. They are calling it the Transpacific Stabilization Agreement. This comes after the Feb. 20 tentative contract agreement reached by the International Longshore and Warehouse Union and the Pacific Maritime Association.
Expectations that imports from Asia are going to see strong growth following the Chinese New Year are also helping to fuel the proposals for general rate increases.
How It Affects Your Business
The rate increases are expected on March 9th and April 9th. Below are some things to keep in mind:
How You Should Handle It
Container Prices are going up. Here are some tips:
We will continue to provide updates and support on these developments as they come.
Have more questions about how your business can respond to these changes? Contact LEGACY today.
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