Welcome to GLA! Leading the global logistics alliance.

The shipper wanted to modify the long-term contract, but the shipping company refused

Time:2022-07-19 Publisher:Kevin Num:2386

Obviously, freight forwarders and shippers are most concerned about the direction of freight. Due to the impact of port congestion and strikes, freight rates on many routes around the world have fallen significantly recently..

Most importantly, the spot freight rate fell below the long-term freight rate. Many customers who had signed long-term contracts tried to negotiate with shipping companies to modify the high long-term transportation agreement.

They hope to reduce the long-term contract fee signed a few months ago by 15% to 20%. In this regard, the shipping company also said that it would not accept the request to amend the contract.

The head of an overseas shipping company in Taiwan, China, China, said that some of the recent actions of shippers were mainly to shake the confidence of shipping companies by talking, so as to obtain the opportunity to reduce prices.

But, when the difference between the spot freight rate and the contract freight rate of each 40 foot container does not exceed 1000 US dollars and lasts for a period of time, it is expected that the shipper will not ask for a price reduction.

Especially for some large direct customers, they attach great importance to credit, and when the sea freight was at a high level last year, the low long-term contract price has also made these direct customers very cheap.

It is worth noting that the contract signing between freight forwarders and direct customers is different. The freight rate of direct customers is relatively high, while the proportion of floating freight rate of freight forwarders is high.

So, for freight forwarders, whether to modify the contract price does not have a great impact. On the contrary, most of the recent efforts to modify the contract are direct customers.

Despite the recent significant decline in shipping prices, the market has entered the traditional peak season, especially in the context of severe congestion on the east coast of the United States, with the possibility of delays and rising freight rates.

At present, truck drivers strike in the three major ports in the west of the United States, including LA/LB port and Oakland port.

At the same time, the U.S. national freight rail labor negotiations are also facing a deadline. These have exacerbated the backlog of containers in western American ports.

As a large number of shippers turn to the East American port, the congestion of the East American port is further aggravated.

According to industry sources, except for the normal lifting of containers at Mason Zhengban dock, the lifting of containers at other docks has slowed down. Although the official website of Mason overtime ship now shows "available", the cabinet can not be lifted in fact.

Similarly, although the containers stranded in the port of Los Angeles began to decline after peaking in October last year, the decline has been significantly reduced.

The number of containers stranded in the port for more than 9 days reached 33999, an increase of 20% over the past 12 days. In addition to containers stranded for more than 9 days, there are also a large number of containers stranded for 0-4 days and 5-8 days.

This is also confirmed by the data of project44. The average detention time of imported containers in these two ports in the last week was 7 days.

Prev：Welcome! New Golden Member from Turkey ———— ESTELOG LOJISTIK A.S.Next：Welcome! Membership Renewal from Vietnam ———— ACCORD INTERNATIONAL COMPANY LIMITED