News / Box lines forced to play a weak hand in transpacific contract talks

© Rasmus Ursem

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 difficult, suggests the consultant.

“A top-heavy delivery schedule and sluggish demand may force shipping lines to lower 2018 transpacific contract rates,” said ...