With high shipping demand still far outweighing tight capacity across the freight sector, transport operators have leverage to raise prices when negotiating new contracts
both said rates would go up an average of 5.9% next year across most services, the first time in eight years that either company had annual increases above 4.9%.
Xeneta said the spot price to ship a 40-foot container from Shanghai to Los Angeles earlier this month was 75% higher than the same time last year. Carriers “go into contract negotiations right now holding the lion’s share of the aces,” Peter Sand, Xeneta’s chief analyst. “The carriers are fully in control and the rest of us are sitting on our hands waiting for the carriers to tell us what to do,” said Craig Grossgart, senior vice president of global ocean freight for Seko.
In trucking, the outlook for higher rates next year follows a sharp run-up in the contract prices that businesses negotiate with trucking companies and freight brokers. Last month the average contract rate reached a record $2.51 per mile excluding fuel surcharge, according to online freight marketplace DAT Solutions LLC.
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