The timing for ocean carriers to negotiate annual transpacific contracts is “the worst possible”, according to the latest assessment by Drewry.
The consultant blames weak demand after Chinese new year and an increase in capacity.
Container lines sitting down with BCOs need to obtain rate increases to at least cover the circa-40% year-on-year hike in fuel costs and inflationary intermodal pressures in the US – but this could be a difficult, suggests the consultant.
“A top-heavy delivery schedule and sluggish demand …
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Source: The Loadstar