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Container Management

Shipping lines have only themselves to blame

July 13, 2009
in Uncategorized
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He was reacting to the announcement by the 14-member Transpacific Stabilisation Agreement (TSA) that the members plan to renegotiate contracts with customers to raise rates in order to avoid what they say are substantial losses on the Asia-North America route.

Dr Traill says he was not surprised, “TSA has been warning its members since April about setting rates too low. The only surprise is that lines have been so short-sighted and persisted in their quest to hold market share rather than focus on profitability.”

He added, “I would be amazed if many shippers agreed to renegotiate contracts, especially the key account customers. But some may buckle if they think that their freight may not be given a guarantee of loading in favour of higher paying cargo”.

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