Aug
22
2017
Why are container shipping rates going up?
As we head into the import peak season the shipping lines have put out notices that rates are set to go up with General Rate Restorations (GRR’s) on both August 1st and September 1st. This is now an annual occurrence, and it is always a bit of a game to see which lines hold the increases, and who are the first to lower the quantum or dismiss the increase all together. All eyes are usually on Maersk, they are the market makers in these scenarios.
But this year maybe different. There has been a large amount of consolidations with in the shipping lines, and there was also a massive amount of capacity taken out of the market when Hanjin was declared bankrupt.
The below graphic will give you some idea of the alliances and mergers, showing the slot (container) capacity.
The big thing to note as we head into Christmas is that the capacity heading into this Christmas is the same as last year, but demand is going up. So the likely scenario is that rates will go up, and there will be space issues. As always the earlier we can get your bookings in the more likely we can secure space on your preferred vessels.
If you have any questions please contact your account manager, or myself on the below details.