9/1/2010 12:15:00 AM
NEWS BRIEFS
With lines failing to push through peak season surcharges (PSSs) on transpacific trades, new capacity could prompt freight rates to fall in the middle of the peak season, IFW.com reports.
Rates to all 15 key markets served by lines from Shanghai reportedly fell in August, even as the height of the peak season approached.
“Not many customers are willing to pay (surcharges), with so much additional capacity being added,” said Paul Tsui, Chairman of the Hong Kong Association of Freight Forwarding and Logistics.
This latest development follows efforts earlier in the year to add short-term capacity to transpacific trades “in response to criticism from shippers and the US Federal Maritime Commission over rising freight costs, which some attributed to liner collusion,” according to IFW.com.
It remains to be seen if carriers are able to move this temporary capacity to other trades in order to solidify rates.
But given that almost one million teu of container shipping capacity has entered the container fleet in 2010 — with more deliveries looming, it’s clear that lines face hard deployment choices.
“The lines might be betting that US demand will be stronger than recent employment figures suggest,” suggested one forwarder. ©2010 GlobalFastenerNews.com
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