2016 Transpacific Container Rate Negotiation Primer
July 2, 2019
Ocean carriers would seem to hold all the cards in contract rate negotiations as controllers of much needed and often tight capacity in an industry with antitrust exemption. Now, after several years in a buyer’s market with no end in sight, the reality is somewhat different.

Shippers have the leverage to secure container capacity at reasonable rates, and often below market value. Although this may not play out in the same extremes in the still-profitable transpacific trade lane as in the Asia-Europe trade, carriers will still be at the mercy of the market when it comes to setting rates for 2016, and we predict the market will not be kind.

Cargo owners in the current market climate will benefit from a glut of capacity and fierce competition that should continue to drive rates further downward. In other words, if you don’t like the price one carrier gives, another will likely be willing to beat it, possibly even on the same exact service.

The American Shipper 2016 Transpacific Container Rate Negotiation Primer gives readers an in-depth look into the current container market, rate expectations for the rest of 2016, and some suggested steps for shippers as they wrap up the spring negotiation season.

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