Container shipping lines have delayed announcing targets for next year’s rates on Asia-US routes as they struggle to forecast volumes amid an expanding global fleet and shaky economic growth, IFW reported.
“No one is able to predict even the near-term outlook,” Brian Conrad, executive administrator at the Transpacific Stabilisation Agreement (TSA), a group of 15 container lines, said yesterday.
Publication of the TSA’s annual rates guidelines, which usually happens this month, may be delayed until early next year, he added.
The delay reflects US retailers’ unwillingness to commitment to orders for Asian-made toys, flat-screen TVs and sports footwear amid a 9% unemployment rate and stock market fluctuations.
Fears of overcapacity, sparked by an increase in the number of containerships in service this year, has also hindered the lines’ efforts to secure higher rates.
Rolf Habben-Jansen, CEO of Damco, the freight forwarding arm of the Maersk group, said: “It’s very, very difficult to look far ahead.
“The economic news is not consistent, and there is a lot of nervousness in the market.”
The pressure on container rates and concerns about the outlook has contributed to Maersk losing about 30% of its market value this year. China Shipping Container Lines has fallen 60% in Hong Kong and Evergreen has tumbled 43% in Taipei.
The TSA publishes voluntary guidelines for annual rates negotiations each year, including recommended targeted increases and peak-season surcharges.
“No one is able to predict even the near-term outlook,” Brian Conrad, executive administrator at the Transpacific Stabilisation Agreement (TSA), a group of 15 container lines, said yesterday.
Publication of the TSA’s annual rates guidelines, which usually happens this month, may be delayed until early next year, he added.
The delay reflects US retailers’ unwillingness to commitment to orders for Asian-made toys, flat-screen TVs and sports footwear amid a 9% unemployment rate and stock market fluctuations.
Fears of overcapacity, sparked by an increase in the number of containerships in service this year, has also hindered the lines’ efforts to secure higher rates.
Rolf Habben-Jansen, CEO of Damco, the freight forwarding arm of the Maersk group, said: “It’s very, very difficult to look far ahead.
“The economic news is not consistent, and there is a lot of nervousness in the market.”
The pressure on container rates and concerns about the outlook has contributed to Maersk losing about 30% of its market value this year. China Shipping Container Lines has fallen 60% in Hong Kong and Evergreen has tumbled 43% in Taipei.
The TSA publishes voluntary guidelines for annual rates negotiations each year, including recommended targeted increases and peak-season surcharges.