Annual contracts Archives - Page 2 of 2

Drop in box shipping contract rates points to ‘a recession of seismic proportions’

31 March 2020

Long-term container shipping contracts have registered their first pricing decline since last October, prompting fears that the industry is heading towards “a recession of seismic proportions”.
According to figures published today by Xeneta, its crowd-sourced freight rate benchmarking platform XSI Public Indices saw a 0.5% decline in long-term contracted rates this month, following “a sustained period of growth”.
Year on year, the XSI was up 5.8% on March 2019 and up 2.2% …

The post Drop in box...

https://theloadstar.com/drop-in-box-shipping-contract-rates-points-to-a-recession-of-seismic-proportions/

Shippers should open talks on container contracts now, says Drewry

15 October 2019

Shippers with sizeable volumes shipped under annual contracts should already be opening negotiations with their carriers for 2020, according to Drewry Supply Chain Advisers.
The reason is the continuing weakness of freight rates on the transpacific and Asia-North Europe container trades, said the analyst.
It noted that while container spot rates on the two largest deepsea trades had largely been in freefall this year – declining on average by 12% since the …

The post Shippers should open talks...

https://theloadstar.com/timing-now-right-for-shippers-to-open-talks-on-container-contracts-says-drewry/

Wincanton sees profits rise as ‘the Adrian Colman era’ comes to an end

16 May 2019

Wincanton raised its profit at around the same rate it lost revenue during its fiscal year 2018.
Despite a 2.6% decline in turnover, to £1.14bn (£1.17bn a year earlier), profits (recorded as ebitda) climbed 2.9% to £66.7m.
Outgoing chief executive Adrian Colman said “key areas” had grown, including retail general merchandise.
“In the second half of the year, we secured substantial new contract wins that should position the group well in the coming periods,” …

The post Wincanton sees profits...

https://theloadstar.com/wincanton-sees-profits-rise-as-the-adrian-colman-era-comes-to-an-end/

Shock for container lines as contract rates start to fall again

3 May 2019

In a significant setback for carriers hoping to improve profitability, ocean freight benchmarking platform Xeneta reported that long-term container contract rates had fallen by an average of 4.2% in April.
Oslo-based Xeneta, which tracks crowd-sourced data from over 110 million contracted container rates, recorded a 4.8% decrease in contract rates between Asia and North Europe and a 3.4% reduction in transpacific headhaul contracts.
The decline followed “steady increases” achieved by container...

https://theloadstar.com/shock-for-container-lines-as-contract-rates-start-to-fall-again/

Return to index-linked contracts an idea gaining traction with BCOs and forwarders

18 April 2019

It’s time for the liner industry to ditch the flawed fixed tender process where “someone always loses” and revisit index-linked contracts.
In a webinar yesterday to reveal results of a survey of 80 senior executives, consisting of forwarders, BCOs and carriers, Freightos founder and chief executive Zvi Schreiber said there was considerable “frustration” with the traditional time-consuming method of tendering – not only from shippers, but also from carriers.
As a commodity, …

The post Return to...

https://theloadstar.com/return-to-index-linked-contracts-an-idea-gaining-traction-with-bcos-and-forwarders/

A festive rate respite, but carriers may be in for ‘a bumpy ride’ in 2019

21 December 2018

The penultimate reading from the Shanghai Containerized Freight Index (SCFI) for 2018 saw continued erosion of spot rates on the transpacific, countered by gains on the Asia-Europe trades.
With US retailers now reported to be overstocked after the advance booking rush to beat the postponed 1 January tariff hike on Chinese imports, demand is proving weaker than the seasonal norm, forcing carriers into heavy discounting.
For the US west coast, spot rates …

The post A festive rate respite, but...

https://theloadstar.co.uk/a-festive-rate-respite-but-carriers-may-be-in-for-a-bumpy-ride-in-2019/

There must be a ‘win-win’ element in container line service contracts

22 November 2018

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 …

The post There must...

https://theloadstar.co.uk/must-win-win-element-container-line-service-contracts/

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