Ocean carriers hold contract rates 'at a decent level', as spots tumble
While spot rates across the major deepsea trades have been on the decline since the ...
© Ulrich Mueller
Container carriers and customers need to work together to develop annual contracts that ensure shippers are provided with adequate service levels and lines are protected from cost spikes.
Cosco vice president Howard Finkel told delegates at last week’s TOC Container Supply Chain event in Panama: “Service contracts are basically rate sheets, usually with a one-year time limit, whereas there ought to be a win-win element to contracts – lines get protection, volume and payment guarantees and shippers get excellent service at an agreed price.
“We ...
Comment on this article
Gary Ferrulli
November 22, 2018 at 4:34 pmExempting a large portion of the lift from any fuel surcharge, import or export, and charging $500-$700 from the Gulf back to Asia is not the formula for success. That shippers won’t pay for premium services, a little strange considering Matson and APL premium services, but accepting that. And then a close look at Coscos financial reports with several lines of subsidies from the government of China in addition to the $26.5 Billion invested between 2016 and 2020 with a promised repeat between 2021 and 2025 – that’s the formula for success.