Freight News
Container Pricing Remains Upwards Amidst High Demand and Congestion
Buying ocean transportation has become unrealistic for numerous companies who ship low value goods, as the price of the container itself is worth more than the goods inside. To paint a picture, it was reported that a company would be charged $32,000 to ship a container from Shanghai to Los Angeles.
While this price tag isn’t always the case, it’s still worth noting to put the chaos in perspective. This leaves some companies with difficult decisions to make regarding the need for inventory. Other shippers who have high end commodities that are trendy, like fashion and electronics, are taking any space they can get, because they can afford it and know their goods will lose value over time.
A big factor in the increased shipping demand is a surge in consumer spending in 2021. This combined with the numerous extremities effecting ports leads some to believe pricing won’t reach stability until mid-next year.
Important Changes Aiding Shippers Who Encounter Damages
The Federal Maritime Commission are cracking down on rules regarding container return time allowances, availability, and detention/demurrage fees. A representative from the FMC brought proposed changes to congress on laws in these contexts. With approval all parties involved in shipping will have more flexibility in addressing concerns and getting returns from ocean carriers.
As the law stands carriers cannot seek damages from shippers. But truckers and agents are void of this protection. The proposal would bring safety from complaints to these parties. In the proposal it is requested that double is paid for damages and detention as well.
Amidst the high costs and demands of transportation, service levels by ocean carriers are going down. Through these new potential enforcements, more control will be obtained over the ocean carriers. This could lead to a more efficient supply chain.
UPCOMING: August 18th Webinar
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Looking to Get Containers Booked?
The transportation industry has recently seen rates reach all time highs along with space and capacity issues. However, our team at InterlogUSA has switched up our process to ensure our customers keep their shipments moving. We are constantly staying up to date on market trends, providing customers different options and last minute openings if they are able to take advantage. With the stress this market has brought many companies, our team has been able to relieve a lot of that with our service and dedication to keep shipments moving.