ASIA-EUROPE and transpacific general rate increases are not likely to stick because of a "steady decline in carrier discipline"
Carrier discipline ebbs as capacity is added and GRIs fail to stick
ASIA-EUROPE and transpacific general rate increases are not likely to stick because of a "steady decline in carrier discipline", according to a study conducted by Copenhagen-based SeaIntel Maritime Analysis.
SeaIntel CEO Lars Jensen said his 15-month study on all 19 rate increases on both the Asia to Europe and transpacific show the ebbing of freight rates despite an apparent 61 per cent success rate in mid-March Asia-Europe GRIs.
"Basically a GRI no longer serves to increase rates to a new level - it serves to resurrect rates from the depths they fall into following the announcement of the increase itself," he said.
"With additional capacity coming into the market in 2013, the carriers need to re-kindle the discipline they had in early 2012 if they are to emerge profitable from 2013." Mr Jensen said, reports London's Containerisation International.
