Update on Ocean Transportation Climate
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As part of our duty as a global supply chain solutions provider, we feel a responsibility to keep our partners updated on the current pricing volatility we are all dealing with, especially regarding ocean capacity. To recap what we've seen so far this year:
   BAF (Bunker Adjustment Factor)- Jan 1, 2010
   ERC (Emergency Revenue Charge)- Jan 15, 2010
   GRI (General Rate Increase)- May 1, 2010
   PSS (Peak Season Surcharge)- June 15, 2010
In addition, we've seen consistently increasing base rates for most of 2010 due to capacity issues coming out of China.
Griffin
Expect Pricing to Continually Increase

It appears that we have not seen the last of carrier price increases. Word out of China is that most all ocean carriers are announcing additional PSS increases to take effect July 19, 2010 once the current PSS runs out. Containers loading after this date will be subject to the following PSS:  
Asia origin cargo: $480 (20')/$600 (40')/$675 (45')/$760 (45' HQ)
 
Additionally, we see carriers looking to raise rates further by implementing a second GRI or EES (Emergency Equipment Surcharge). One carrier has officially announced a second GRI, effective July 18, 2010:
Proposed GRI: $320 (20')/$400 (40')/$450 (45')/$506 (45' HQ) 
Griffin
Capacity Issues Update
 
We last reported that vessel capacity issues would continue, despite some carriers adding new services. In addition to the current imbalance between vessel capacity supply and demand, we are experiencing another problem to compound the issue- a shortage of empty ocean container availability.
 
To paraphrase commentary from a June 18th edition of the Journal of Commerce, the growing shortage of container supply is a direct result of several factors, including:
1. Slowly rebounding ocean container manufacturing is not meeting increasing demand requirements. This is partly attributed to economic factors, as well as a shortage of labor.
2. Vessels are returning to Asia and Europe with full containers instead of empties as was previously the case.
3. Increased consumption by China and other areas of the world. Areas that once had an abundance of empty inbound containers are now receiving loaded containers- extending the turnaround time.
 
A copy of this article from the Journal of Commerce can be read by clicking here. The end result is the capacity issues we've been working through are compounded further, and carriers are continuing to increase prices accordingly.
 
We pledge to continue to provide you with the best pricing possible while ensuring that your ocean freight moves to its destination in as timely a manner as possible. Please Contact Us with any questions you have on the current situation. You can speak with our International Team at 800.361.5028 ext 2, or our Sales Team at 800.361.5028 ext 5.
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Griffin Commitment
 
Our continued success lies in our commitment to a culture strong in customer care and Personal Service. We thrive in building customized, information-based  Tailored Solutions for your business needs. Our Global Reach ensures that wherever your goods need to go - Griffin can deliver.

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