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Seajet |
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Mid
February |
Canada Rates Spiraling Up!
Dear Customers and Friends of Seajet: As of week 4 and 5 practically all ocean carriers stopped accepting bookings from Asia to Canada. This was to give them the mandatory 30 days to establish the Emergency Revenue Charge that had already been established for the USA effective 1/15/10. It also served to demonstrate their resolve and to create a backlog of containers to be shipped. To give you an idea of the increases that have already taken place and that will take place on February 23 and March 15, 2010 please read on. Effective 01/27/10 A combination of higher rates, Peak Season Surcharge, Port Security Surcharge and higher BAF translating into the following bottom line increases: $ 100/20 160/40 170/40HC 600/45. This initial increase is relatively small with the exception of 45 which makes it clear that carriers want a premium for moving 45 equipment as it reduces utilization configurations on vessels as much as trains (some carriers have stopped releasing 45 to the US East Coast as well). Another reason is that there is practically no need for 45 equipment for exports from Canada (45 equipment is used for light cargo of which Canada is not a big manufacturer). This means imports are paying in part for the repositioning of 45 equipment from Canada back to Asia. Effective 02/01/10 - Currency Adjustment Factor (CAF): 5% on base freight Effective 02/23/10 Emergency Revenue Charge (please see attachment): West Coast (British Columbia): $ 320/20 400/40 450/40HC 505/45 Rest of Canada: $ 400/20 500/40 565/40HC 635/45 Effective 03/01/10 Currency Adjustment Factor (CAF): 6% on base freight Effective 03/15/10 General Rate Increase (GRI/please see attachment) West Coast (British Columbia): $ 320/20 400/40 450/40HC 505/45 Rest of Canada: $ 400/20 500/40 565/40HC 635/45 I am not sure if the GRI filed to become effective March 15, 2010 will stick but there is no doubt in my mind that the ERC effective 2/23/10 will be implemented in full. Carriers had time to test this in the USA trade where all of them stood firm. Currently the attitude of the carriers is either pay or dont expect us to ship your containers. As mentioned in previous Seajet Newsletters carriers have very little alternatives but to drastically raise rates in order to ensure their survival. At the moment there is no carrier in the position to break rank in order to gain market share. Their creditors will not let them. There have also been numerous announcements from carriers to increase rates in the Atlantic trades though I believe it is too early to make any announcements. Once we have certainty of the actual amounts we shall advise you accordingly. As always, please do not shoot the messenger. The end of 2009 and the beginning of 2010 have been very trying for all involved to say the least. What I can assure of is that our partners are working tirelessly to maintain the best rates possible and to keep your freight moving. Best regards,
Andreas Bauermeister,
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Seajet Express Inc., 46 Arlington Street, Chelsea, MA 02150 - Telephone 617.884.0991 - www.seajet.com |
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