 Contract rates up sharply |
Source |
American Shipper |
Post Date |
04/28/2021 |
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A recent presentation by Xeneta, a company that collects contract data, showed Asia-West Coast contracts being negotiated this year at around 30%-50% higher levels than last year.
Numbers are around double Xeneta¡¯s. ¡°We are seeing fixed-price increases of slightly over 100% on Asia-West Coast and about 75% on Asia-East Coast,¡± he said. ¡°Also, almost every single contract rate is subject to peak season surges [PSSs], so the prices aren¡¯t exactly fixed. I think the PSSs will reduce the gap between the spot and fixed market.¡±
Asked about shippers who have yet to conclude their annual contracts, he said, ¡°If you want a fixed price in today¡¯s market, the answer you¡¯ll get from the carriers is that it¡¯s too late. We advised many importers to sign early because the trans-Pacific contract season would close [early] because there¡¯s more demand than supply. And that¡¯s exactly what happened.¡±
There are exceptions, such as larger shippers with June-to-June contracts who began discussions with carriers earlier this year. ¡°But if you are just a simple importer and you are yet to sign your fixed contract, you will be in the s
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