Dive Brief:
- US containerized goods importers must prepare themselves to pay more in 2016-2017, and say farewell to free detention and chassis, the Journal of Commerce reported Wednesday.
- Carriers will be reassessing their costs and considering what they can afford to offer as the shipping industry continues to struggle.
- Freight rates on all-water services between Asia and both the U.S. West and East coasts continue to slip, but the declines are lessening in severity, a sign shipping prices may be ready to rise again.
Dive Insight:
One industry's suffering has led to good times in transport prices, for which it's just about time to pay the piper.
By now the sinking condition of the transport shipping industry is well known. Too many ships were built in an effort to sustain all-important shipyards and undercut competitors' prices, leading to an excess of availability, artificially low rates and unsustainable perks.
Now that the veil has been lifted, however, those unrealistic prices are vanishing, along with the surfeit of extra ships, many of which have been corralled into alliances or sent to ship breakers in an effort to sustain the industry.
For those shippers who wish to budget intelligently, counting on a rise is not only wise but necessary as new contracts are signed.
