After a terrible 2009 we’re finally into 2010 and with freight volumes going up slightly in the first part of 2010, along with freight rates, things are starting to look a little better for freight carriers using container shipping services from the United States to Asia.
This is great news for an industry that has had to deal with one problem after another, but it’s only a small improvement and we need to control our responses to the upturn in business. The improvement in the numbers could just be a temporary thing and we need to keep our responses to the improvement in the numbers well measured.
Just as we’re starting to get a little excited about the improvement in the freight carrier business news comes in that the Westbound Transpacific Stabilisation Agreement (WTSA) has decided that freight rates still need to be increased in order to help freight carriers deal with the problems they’re experiencing. The Transpacific Stabilisation Agreement members include APL, Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, K Line, NYK, OOCL and Yangming.
According to the WTSA freight carriers continue to head into the red as we head further into 2010, despite the increase in freight volumes and the present freight rates, and a further rate increase is necessary to help companies try to stay afloat.
This decision by the WTSA isn’t surprising since companies are continuing to loose money with the present rates that are being charged and a firm won’t be in business long if it keeps losing money. Companies need to make a profit and the price of freight services will have to be set at a level that allows firms to make a profit.
http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017752615
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