RATES for cargo under long-term contracts on main east-west routes have increased for the first time in years, according to Drewry's Benchmarking Club, reports the American Journal of Transportation.
The club, a closed user group of major retailers and manufacturers, found that talks in the European trades, shippers have had to suffer to increases for the first time in years.
"However, increases are not uniform and bunker charges for some shippers are decreasing, so it is too early to say whether the trend line has truly changed direction," said Philip Damas, director of Drewry Supply Chain Advisors.
Another factor, he noted, was that spot freight rates from Asia to both the US west coast and Europe have declined sharply in recent months.
The Drewry Benchmarking Club contract rate index, based on transpacific and Asia-Europe contract freight rate data provided confidentially by shippers, increased by one per cent between November 2014 and February 2015.
Last year the Benchmarking Club had seen a continuous fall in contract rates.
Shippers in the US trades are currently negotiating their transpacific contracts. They are facing the prospect of rate increases for intermodal rates and possibly, to a lesser extent, for port-to-port rates.
"Logistics and procurement managers will need to justify and explain to CFOs and to senior management that the cost of moving goods around the world is no longer enjoying year-on-year automatic reductions," Mr Damas said.
"In our consultancy work, we also notice that shippers are reviewing the trade-off between cost and reliability," he said.
Due to non-disclosure agreements with all shipper members of the Benchmarking Club, Drewry cannot share detailed cost benchmarking intelligence with companies which are not members of the club.
MARKETS
02 April 2015 - 17:44
Shippers suffer first rate hike in years in annual contract talks: Drewry
RATES for cargo under long-term contracts on main east-west routes have increased for the first time in years, according to Drewry's Benchmarking Club, reports the American Journal of Transportation.
MARKETS
02 April 2015 - 17:44
Shippers suffer first rate hike in years in annual contract talks: Drewry
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