Monday, March 27, 2023
  • Login
Anonymous Wire
  • Home
  • Top News
  • Entertainment
  • Technology
  • World Sport
  • Uncategorized
  • Privacy Policy
  • Website Terms of Use
  • Contact Us
No Result
View All Result
  • Home
  • Top News
  • Entertainment
  • Technology
  • World Sport
  • Uncategorized
  • Privacy Policy
  • Website Terms of Use
  • Contact Us
No Result
View All Result
Anonymous Wire
No Result
View All Result
Home Adventure

US Retailers’ Ocean Shipping Price Woes Ending as New Delays Threaten

February 28, 2023
in Adventure
0
US Retailers’ Ocean Shipping Price Woes Ending as New Delays Threaten
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

US Retailers’ Ocean Shipping Price Woes Ending as New Delays Threaten

gaKvrR

Collapsing ocean shipping rates are not all good news for U.S. retailers, who paid as much as $20,000 to move a container of goods during the worst pandemic disruptions, as they now are bracing for delays due to plummeting demand.

Carriers like MSC and Maersk are trying to prop up prices by cancelling voyages and that could spark a new round of cargo delays as containers get bumped from one ship to the next, experts said ahead of a major U.S. ocean shipping conference in Long Beach, California, this week.

The event, called TPM23, marks the unofficial kickoff of the container shipping contract negotiating season when carriers and their U.S. customers ranging from Walmart Inc to mom and pop merchants and exporters of all stripes hammer out annual price and volume agreements.

Those closely watched, and often contentious, negotiations matter because the Asia-U.S. trade lane is the most lucrative for carriers, and those contracts set the tone for talks in other regions.

Any shipper savings gleaned from those deals could come with a new headache though – late deliveries.

The Port of Los Angeles reported 17 canceled voyages in January and warned of more to come.

“If (carriers) keep bumping containers, we could end up missing Christmas,” said Isaac Larian, chief executive of Southern California toy maker MGA Entertainment.

MGA’s team has already switched around 75% of shipments of products like Rainbow High and L.O.L. Surprise! dolls to the short-term spot market from the long-term contract market. The company is paying around $1,150 per container – a cost savings of more than $18,000 from peak, Larian said.

Volatile spot rates were the first to plummet when pandemic-weary consumers shifted spending from goods to travel and entertainment. Now the gap between spot and contract rates is closing, pressured by the threat of recession and competition to fill ships, said Peter Sand, chief analyst at air and ocean freight rate benchmarking platform Xeneta.

Shippers’ revenge
When demand was booming, carriers raked in record profits by focusing on the most lucrative cargo. Critical customers had to jostle for space and the likes of Walmart, Costco Wholesale Corp and Dollar Tree Inc chartered ships to keep shelves stocked.

But the tables have turned, and shippers want payback for ocean cargo costs that quadrupled in some cases.

It is “shippers’ revenge,” said Jon Monroe, an industry consultant and North American representative of Singapore-based Transfar Shipping, whose investors include China e-commerce giant Alibaba.

“There was a time when everybody looked for a win-win. COVID threw that right off the tracks,” he said.

Previously loyal customers are aggressively comparison- shopping, spreading their business around and gambling on the spot market, experts said.

The nonbinding nature of ocean contracts drives customers or carriers to push for everything they can get when leverage swings their way, said Lawrence Burns, a consultant who formerly handled negotiations for Hyundai Merchant Marine.

This time around, importer and exporter shipping managers, whose costs exploded when they were unexpectedly forced into the sky-high spot market, have the upper hand.

“They’ve been called into the CEO’s office too many times in the last two years. They’re coming back for blood,” Burns said.

Customers and carriers do not often discuss contract talks, but in recent earnings calls officials for Walmart – the No. 1 U.S. container shipper – furniture retailer La-Z-Boy, toy maker Mattel Inc and musical instrument seller Yamaha said they expected to benefit from lower rates.

(Reuters – Reporting by Lisa Baertlein. Editing by Ben Klayman and Matthew Lewis)

Published at Mon, 27 Feb 2023 16:45:19 +0000

ShareTweetPinSendShareShareShareShareSend
Previous Post

You can now fly the largest aircraft ever built in ‘Microsoft Flight Simulator’

Next Post

FIFA The Best 2023 award winners, voting results: Lionel Messi, Alexia Putellas voted best players

Next Post
FIFA The Best 2023 award winners, voting results: Lionel Messi, Alexia Putellas voted best players

FIFA The Best 2023 award winners, voting results: Lionel Messi, Alexia Putellas voted best players

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

  • Trending
  • Comments
  • Latest
WEF Advisor: ‘Common People’ Should Live In Fear, ‘We Don’t Need The Vast Majority of You’

WEF Advisor: ‘Common People’ Should Live In Fear, ‘We Don’t Need The Vast Majority of You’

August 12, 2022
ANOTHER Clinton Associate, Who Vowed to Expose Elite Pedophile Ring, Found Dead

ANOTHER Clinton Associate, Who Vowed to Expose Elite Pedophile Ring, Found Dead

May 29, 2022
3,200 Megapixels: The World’s Largest Camera will be Complete in 2023

3,200 Megapixels: The World’s Largest Camera will be Complete in 2023

October 11, 2022
Father Launches Billboard Campaign to Tell the World His Son Was Killed by the Pfizer Vaccine

Father Launches Billboard Campaign to Tell the World His Son Was Killed by the Pfizer Vaccine

April 16, 2022
Vaccine Epidemic: Young European politicians drop dead ‘suddenly and unexpectedly’

Vaccine Epidemic: Young European politicians drop dead ‘suddenly and unexpectedly’

0
Multiple Vaccinated “#vaxxedtothemax” Lawyer Suddenly Collapses During Hearing

Multiple Vaccinated “#vaxxedtothemax” Lawyer Suddenly Collapses During Hearing

0
Alpha V2ray MOD APK 3.2 (Ads Free)

Alpha V2ray MOD APK 3.2 (Ads Free)

0
Tesla is getting a new batch of Giga Press deliveries in Gigafactory Texas

Tesla is getting a new batch of Giga Press deliveries in Gigafactory Texas

0
Netflix strikes last-minute deal to retain ‘Arrested Development’ streaming rights

Netflix strikes last-minute deal to retain ‘Arrested Development’ streaming rights

March 26, 2023
Aluminiumfoliehoedje – Draag het met trots

Aluminiumfoliehoedje – Draag het met trots

March 26, 2023
Lakers NBA Playoff picture: Updated standings, schedule, bracket, key dates for 2022-23 season

Lakers NBA Playoff picture: Updated standings, schedule, bracket, key dates for 2022-23 season

March 26, 2023
Situatierapport 25/3: Offensieven paranoia!

Situatierapport 25/3: Offensieven paranoia!

March 25, 2023

Recent News

Netflix strikes last-minute deal to retain ‘Arrested Development’ streaming rights

Netflix strikes last-minute deal to retain ‘Arrested Development’ streaming rights

March 26, 2023
Aluminiumfoliehoedje – Draag het met trots

Aluminiumfoliehoedje – Draag het met trots

March 26, 2023
Lakers NBA Playoff picture: Updated standings, schedule, bracket, key dates for 2022-23 season

Lakers NBA Playoff picture: Updated standings, schedule, bracket, key dates for 2022-23 season

March 26, 2023
Situatierapport 25/3: Offensieven paranoia!

Situatierapport 25/3: Offensieven paranoia!

March 25, 2023

ABOUT US

Anonymous Wire is the best news website to get every updates you need.

Follow Us

Browse by Category

  • Adventure (46)
  • An Adventure (1)
  • Business (3)
  • Entertainment (161)
  • Games (5)
  • Health (57)
  • News (207)
  • Science & Space (2)
  • Technology (164)
  • Top News (167)
  • Uncategorized (17)
  • Web Stories (1)
  • World Sport (75)

Recent News

Netflix strikes last-minute deal to retain ‘Arrested Development’ streaming rights

Netflix strikes last-minute deal to retain ‘Arrested Development’ streaming rights

March 26, 2023
Aluminiumfoliehoedje – Draag het met trots

Aluminiumfoliehoedje – Draag het met trots

March 26, 2023
  • Home
  • Top News
  • Entertainment
  • Technology
  • World Sport
  • Uncategorized
  • Privacy Policy
  • Website Terms of Use
  • Contact Us

© 2022 Anonymous Wire - Design & Developed by IndeedFeed Media.

No Result
View All Result
  • Home
  • Top News
  • Entertainment
  • Technology
  • World Sport
  • Uncategorized
  • Privacy Policy
  • Website Terms of Use
  • Contact Us

© 2022 Anonymous Wire - Design & Developed by IndeedFeed Media.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In