International Housewares Association

Industry Education, Tradeshow, Resources + More - IHA

  • All Posts
  • Show
  • Executive Networking
    • CHESS Conference
    • CORE Networking Groups
  • Global Opportunities
    • Connect GLOBAL
    • IBC Global Forum
    • Trade Missions
    • Key Buyer / Market Reports
    • Export 101
    • Global Retail Intelligence
  • Education
    • Smart Home
    • Gourmet Home
    • Webinars
    • Trends
    • Housewares History
  • Industry Resources
    • U.S. Retail Intelligence
    • IHSA Shippers Association
    • Government Affairs & Legal
  • Inspiration Magazine
    • Design
    • Innovation
    • Inspiration
    • Trends

Service Contracts Underway for Asia to US Cargo

March 4, 2021

Shippers moving containers from Asia to the US are in the midst of very tough service contract negotiations. As anticipated, the carriers are demanding very strict container commitment guidelines, reductions in free time and significant rate increases.

Finding sufficient carriers to meet your forecasted container demand has been the biggest challenge for shippers since 2021 negotiations started. This represents a major shift from past negotiations when carriers pressed shippers for increased container commitments. Some carriers are going so far as refusing to entertain signing contracts with shippers unless they already have an existing contract. Even shippers that do have existing contracts are being told that increased container commitments will not be accepted in the new contracts.

Another reality that shippers must face is the reduction in free days that containers can be held at your warehouse before additional fees are charged. It is not unusual for shippers to secure 10 to 14 days of free time to unload a container. With import rates from Asia at all-time high levels, carriers want empty containers shipped back to Asia as soon as possible. Shippers could be forced to pay penalties as high as $250 per day for each container exceeding the reduced free day guidelines. 

Asia to US contract rates are expected to increase between $1000-$2000 a container over 2020 rates depending on the origins and destinations involved. The projected demand for 2021 is so strong that carriers are able to be very selective on the contracts they sign. Shippers have very little recourse this year but to accept the exorbitant rate increases. Shippers unwilling to pay the increases will need to rely on shipping in the open market which is a very risky strategy. Unless there is a global event causing demand to suddenly plummet, rates in the open market will remain well above contracted rate levels throughout the 2021 shipping season.

Filed Under: All Posts, Featured, IHSA Shippers Association, Industry Resources Tagged With: IHSA

IHA Submits Comments to USTR Tariff Review

U.S. Retail Intelligence – February

Asia to U.S. Contract Negotiations Begin

Take Control of Your Supply Chain Challenges

Significant Trade and Shipping Regulatory Actions

The Inspired Home Show 2022

IHA
6400 Shafer Court, Suite 650
Rosemont, IL 60018
United States of America

T: +1-847-292-4200
F: +1-847-292-4211

Staff Directory
Privacy and Legal

Connect With IHA

International Housewares Association
  • Facebook
  • Linkedin
  • Twitter
  • YouTube

Connect With The Inspired Home

The Inspired Home
  • Bloglovin
  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

© 2023 International Housewares Association · Design by Brian Lis · Log in

By clicking Accept, I agree with IHA’s privacy and cookie policies. Click here to review the policies