|
Seajet |
|
|||
|
|
||||
|
Mid
December |
Pacific Carriers Announce "Emergency Recovery Rate Hike"
to be effective 15 January 2010
Dear Customers and Friends of Seajet: On December 16th the Transpacific Stabilization Agreement (TSA) which counts as its members practically all major carriers in the trade between Asia and the USA announced rate increases in three parts: 1. Emergency Revenue Program This is scheduled to become effective on January 15 at the following levels: $ 320/20 400/40 450/40HC 505/45 2. New Floating Bunker Charge This is scheduled to become effective on January 1 with the following levels: West Coast: $ 280/20 348/40 - 385/40HC 440/45 Gulf and East Coast: $ 551/20 689/40 775/40HC 872/45 3.) GRI for the next contracting period from May 1st, 2010 through April 30th, 2011 West Coast: $ 640/20 800/40 900/40HC 1,010/45 Gulf and East Coast: $ 800/20 1,000/40 1,125/40HC 1,266/45 On our website we posted 3 articles (links here below) CMA Emergency Revenue Announcement MOL Emergency Revenue Announcment TSA Emregency Revenue Announcment from the Journal of Commerce of which we believe the first under Pacific Carriers call for Emergency Rate Hike (TSA Emergency Revenue Announcement) describes the background and circumstances best. Earlier this year it became clear that carriers would be in trouble as volumes on the Pacific dropped by approximately 20% while new vessels came into the trade. The carriers panicked and cut rates in an effort to secure market share. All importers were the beneficiary of that behavior as rates spiraled downwards with unprecedented speed. However as it became increasingly more difficult for carriers to raise capital and/or gain support from the respective governments they embarked on a fleet reduction program eliminating huge amounts of capacity by parking their vessels and empty containers in ports around the world. Back in August/September carriers increased rates and continued to take more capacity out of the market and in fact created an artificial shortage by October (just in time for the busiest shipping season during which demand for space grows). However freight rates are still very low in comparison to levels even just a year ago. It is impossible to know if carriers have the discipline to push all the above increases through. The Bunker Charge is already in place at levels not much below the levels announced. Carriers almost always announce significant GRIs for the upcoming contracting season (even when rates are already high) so I personally have some doubt about at least the amounts mentioned. However I do believe that they will push through the Emergency Revenue Program. I believe it because under current conditions they can and based on the fact that they will have combined losses of about $ 20 billion in 2009 they must. Having said this, some of the Seajet partners in Asia who are the people negotiating our contracts and who are in discussions with the carriers every day have told me that they believe the Emergency Revenue Program will hold until Chinese New Year (February 14) when there will be another rush to ship out freight. Thereafter they believe rates may actually go down again. It is obviously impossible to say how things will progress but we felt strongly about sharing the official version from the carriers with you (even though we realize that this is not the holiday message you wanted to hear). If you have questions or would like to receive additional information please feel free to contact us at any time. The above message not withstanding we wish you enjoyable holidays and a happy new year. Thank you for your support and best regards, Andreas Bauermeister,
|
|||
|
|
||||
|
Seajet Express Inc., 46 Arlington Street, Chelsea, MA 02150 - Telephone 617.884.0991 - www.seajet.com |
||||
