Contract negotiations Archives - The Loadstar

‘Desperate’ GRIs by carriers prop up Asia-Europe spot rates, for now

Gavin van Marle — Fri, 01 Nov 2024 13:39:54 +0000

Container shipping lines on the main east-west trades this week managed to reverse 15 weeks of consecutive declines in spot freight rates by managing to push through a general rate increase on ex-Asia loadings.
This week’s Drewry World Container Index (WCI) saw the spot rate on the Shanghai-Rotterdam leg rise 8% week on week, to $3,396 per 40ft, while the Shanghai-Genoa leg grew 11%, to $3,648 per 40ft.
One European forwarder told ...

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Shipping alliance shake-up will make waves during new contract season

Charlotte Goldstone — Wed, 21 Aug 2024 10:32:46 +0000

With the ocean shipping alliances set to undergo major upheaval, the upcoming contract negotiation season will be different, because of “big unknowns”, according to the director of the Global Shipper’s Forum, James Hookham.
In February, ocean carriers Maersk and Hapag-Lloyd will leave their respective groupings, the 2M and THE Alliance, to form the Gemini Cooperation.
The 2M’s MSC will remain alone, THE Alliance will comprise just HMM, ONE and Yang Ming, while ...

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Carriers box clever on capacity and have ‘the upper hand’ as contract talks loom

Alexander Whiteman — Thu, 15 Aug 2024 11:52:50 +0000

Recent experience and ongoing chaos in the Red Sea have led to carriers’ customers asking, on the eve of new negotiations: “Do contracts amount to anything any more?”
NNR Global Logistics’ head of ocean development, Alexander Tennant, told The Loadstar geopolitical uncertainty and the current limited capacity had given carriers “the upper hand” as negotiations loom.
He added: “I expect rates sitting higher than last year, as most lines are advising their ...

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USMX and ILA to start talks on new contract covering Atlantic coast ports

Charlotte Goldstone — Tue, 14 May 2024 15:31:32 +0000

Negotiations on contracts covering some 45,000 dockworkers along the US east and Gulf coast ports are expected to begin soon, just four months before the current agreement expires.
The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) yesterday announced they expected master contract negotiations to follow “the likely completion” of talks on local contracts this week.
ILA president Harold Daggett had instructed union branches to resolve local east/Gulf coast ...

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Yang Ming unveils fleet renewal plan, but is cautious long-term

Alex Lennane — Mon, 25 Mar 2024 13:21:40 +0000

Yang Ming’s management today disclosed its fleet renewal plans and discussed contract negotiations.
The Taiwanese carrier released its 2023 results on 8 March, showing net profit plunged to $153m, from $6.06bn in 2022, as the Covid-powered boom ended.
Newbuilding plans were not detailed, although Yang Ming is understood to be considering orders for eight 8,000 teu boxships and six of 1,900 teu, with methanol propulsion favoured.
Geopolitical tensions mean Yang Ming is unlikely ...

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An ILA may be the best deal for liner clients mulling a spot rate gamble

Charlotte Goldstone — Fri, 26 Jan 2024 12:55:59 +0000

Shippers and forwarders currently tendering should consider index-linked contracts if they are caught between betting on a fixed deal or gambling with the spot market.
President of Jon Monroe Consulting, Jon Monroe, told The Loadstar Podcast that, when signing agreements, it was important to understand the relationship between the contract rates and spot rates – as spot rates would determine the contract rate level at the time of signing.
“If the spot rates ...

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Shippers eye longer-term airfreight contracts to avoid ocean delays

Alex Lennane — Thu, 04 Jan 2024 13:48:26 +0000

Shippers have increasingly been committing to longer-term fixed rate contracts in airfreight – but could struggle to retain those rates if the Red Sea disruption causes a spike in air capacity demand.
In the final quarter of 2023, contracts of more than six months’ length accounted for 45% of all agreements, up five percentage points from the third quarter, according to Xeneta data. Six-month contracts accounted for 28% of the market, ...

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MSC joins new Asia-Europe GRI bid as contract talks loom

Mike Wackett — Tue, 14 Nov 2023 13:26:23 +0000

MSC has joined rivals CMA CGM and Hapag-Lloyd in announcing a substantial FAK (freight all kinds) general rate increase (GRI) from Asia to North Europe for 1 December.
It remains to be seen whether MSC’s 2M Alliance partner, Maersk, will throw its weight behind the FAK hikes with its own increase.
The Geneva-headquartered carrier advised customers it would increase FAK rates on the transpacific route to $962 per 20ft and $1,750 per ...

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Air and sea shippers weigh pros and cons of index-linked agreements

Alex Lennane — Mon, 06 Nov 2023 11:29:06 +0000

Uncertainty on freight rates for the next year is concerning both shippers and carriers as they consider committing to 12-month contracts – both in air and sea.
One way of reducing risk is through index-linked agreements (ILAs) – but carriers have concerns that rates could fall to unsustainable levels.
Stanley Smulders, director of marketing & commercial at Ocean Network Express (ONE), told a Xeneta event last month that rates were still volatile.
“Individual ...

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US shipper accuses DSV of $900,000 ‘overbilling’ amid contracts row

Alexander Whiteman — Mon, 04 Sep 2023 11:56:45 +0000

The US Federal Maritime Commission (FMC) is investigating efforts by DSV to unilaterally block termination rights and impose charges totalling $900,000 on one of its shippers.
Electronics manufacturer Hubbell entered a negotiated service arrangement (NSA) with DSV in April last year for Asia-US services, but claimed that, “almost immediately”, the NVOCC sought to change the agreement’s terms, citing “unspecified FMC concerns” that required changes to the wording of the document.
“DSV’s multiple ...

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