IHSA Shippers Association

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New Carrier Environment and Uncertainty Emerges for 2018

IHSA will begin ocean contract negotiations in February. Industry analysts have differing opinions on which side, shippers or carriers, will have the upper hand during the 2018 negotiations. There are some analysts that believe excess capacity will again be a major deterrent preventing carriers from securing any sustained rate increases during 2018. On the contrary, other…

Carriers Struggle to Maintain Rate Stability

After collectively losing $5 billion in 2016, the carriers are collectively poised to return to profitability for 2017. The anxiety that shippers experienced in 2016 regarding bankruptcies and acquisitions is no longer dominating the headlines. While stability is welcome news for the industry, there are concerns about whether the carriers will be able to sustain stability.…

IHSA Declares Rebate Dividend

IHSA has declared a rebate dividend of $173,572 for the period June 1, 2016 through May 31, 2017, which coincides with IHSA’s fiscal year. IHSA is pleased to report that the declared rebate amount is 20.5% larger than last year. The rebate will be distributed among eligible association members during the month of November 2017. IHSA is proud of the fact that they continue to…

Ocean Carriers Return to Profitability

The average operating margins for the top 13 ocean carriers finally returned to the black for the first half of 2017. This is first time since the second quarter of 2015 where the average operating margin is positive. These results have eased some, but not all, of the concern shippers have regarding the financial stability of the containership industry. Out of the 13…

ILWU Extends Labor Contract

Shippers remember all too well the chaos and congestion that engulfed US West Coast during the 2014-2015 labor contract negotiations between the ILWU (International Longshore Warehouse Union) and the representatives for the steamship lines. It took the threat of getting Washington DC involved before the parties agreed to a contract. By the time the contract was finally signed,…

Another Carrier Merger

The steamship industry was riddled with carrier consolidation during 2015 and 2016. A total of eight carriers were either acquired or merged with other carriers. Shippers were hoping that 2017 would bring some stability to their supply chains. The stability lasted only six months. On July 9, 2017, COSCO Shipping Holdings announced that they were making a bid to acquire Orient…

Ocean Freight Carriers Seeking Rate Increases Ahead of Peak Season

On June 7, a headline in a trade publication indicated freight carriers were poised to profit from higher rates. On June 8th, that same trade publication had a new headline indicating that new capacity entering the market would keep pressure on West Coast rates. Those contrasting remarks highlight the uncertainty when it comes to predicting freight rate stability in the Asia to…

Ocean Freight: Cancellation Fees Related to Overbooking

Steamship lines have complained for years that shippers book more containers than what are required to meet their shipping needs. It is common practice for some shippers to place excess container bookings to protect space only to cancel these bookings prior to the sailing date. Steamship lines claim that for every four containers booked, only three show up for the sailing.…

Ocean Carrier Financial Results Seeing Red

The 2016 operating margins for the top 13 ocean carriers have been announced. While the fourth quarter showed some improvement, the overall numbers were abysmal for the containership industry. Of the 13 carriers, only three posted operating margins in the black. Despite an uptick in rates triggered by the collapse of Hanjin Shipping, the remaining 10 carriers posted margins in…