MIME-Version: 1.0 Content-Location: file:///C:/23995239/CarrierShortages081309.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" In reaction to global trade that has slowed over the past 12 months, carriers are consolidating trade lanes and docking vessels

TRADE ALERT

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Carriers Consolidate Trade Lanes, Tighten Capacity

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(August 13, 2009)

 

 

In response to global trade that has slowed over the p= ast 12 months, carriers have consolidated trade lanes and docked vessels.  Carriers are reporting losses of millions of dollars during the first half of 2009 and are using service consolidation and rate increases to help regain= profitability.  According to the Journal of Commer= ce, the top 22 carriers have idled 6.6 percent of their operated fleet, which is equivalent to 728,000 TEUs.  Some trade lanes, such as those involving Asian ports, have as much as 27 percent of their fleet out of operation.  This action has el= iminated available space on board vessels and removed capacity from many routes.  Most trade lanes are affected by t= his consolidation, and cancellation of services include European, Pacific Rim, = and South American routes that call on US, Canadian, and foreign ports. 

 

Additionally, carriers have recently begun to implement their traditional surcharges, such as general rate increases (GRI) and peak season surcharges (PSS).  To d= ate, GRIs have been implemented by a number of carriers for various trade lanes and are ranging from $100 to $300 per TEU.  Trade lanes from Asia to US or Canada = are generally requiring $500 per FEU.  Carriers are beginning to announce PSS as well, which range from $75 to $500 dependi= ng on the trade lane and equipment needed.&nb= sp; For example, as a result, rates will effectively double for US west coast cargo inbound from Asia compared t= o a week ago.  PSS rates are generally = going into effect starting at the beginning to middle of September.

 

To avoid delays from lack of space, importers and expo= rters should secure cargo bookings early.  It is important to stay in contact with your freight forwarder to en= sure that you have the most up-to-date information on the ever-changing rates. 

 

For more information, please contact your sales representative or email us at ratequotes@anderinger.com 

 

 

About Deringer

A.N. Deringer, Inc. is a leading provider of international logistics services including Freight Forwarding, Warehousing & Distribution, Cust= oms Brokerage, Logistics Consulting, Cargo Insurance, Duty Drawback, and Meat Inspection. Deringer combines over 30 US offices with a global agen= cy network to facilitate the movement of cargo throughout the world.