IHSA Shippers Association

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Container Spot Rates Spike in June

Shippers are fed up with the carriers so-called capacity management strategy. The strategy of canceled sailings has resulted in thousands of US-bound containers being delayed in Asia. The lack of space available on ships has quickly driven spot rates to a 52-week high. The spot rates from Asia to US West Coast ports increased over $1000 in the last three weeks topping out…

Container Space Tightens from Asia to US

Due to lack of demand, carriers cancelled 20% of Asia to US sailings for the month of May. They have already announced plans to cancel 20% of their Asia to US sailings for the month of June. The containers already booked for June sailings reinforces that demand is starting to rebound. The uptick in container volume is a positive sign for all stakeholders but also presents…

Sourcing Shift from China Continues

The prolonged trade war between the US and China plus the emergence of COVID-19 have changed how importers should evaluate risk when finalizing their sourcing options. Importers that rely 100% on China for sourcing are more at risk than importers that have multiple sourcing options. Many US importers have already learned a lesson from relying too heavily on China for their…

IHSA Ocean Contract Negotiations

IHSA and our carrier partners are fully engaged in contract negotiations that determine annual shipping rates for cargo shipped from Asia to the US. The new shipping rates will go into effect on May 1, 2020 and expire on April 30, 2021. When negotiations began, both parties were prepared to discuss the usual topics of rates, fuel, detention free time and space allocation.…

Carriers Monitoring the Coronavirus

The carriers are monitoring the impact the coronavirus could have on containers moving from China to the US. They have refrained from cancelling sailings so far, but the situation is very fluid. To help contain the coronavirus, the Chinese government extended the Chinese New Year holiday for most of the country by 3 days. Factories located in areas hardest hit by the…

Scrubbers Could Provide Significant Cost Savings

Carriers that took the risk to install scrubber installations on their ships will likely have a competitive advantage in the containership industry. Effective January 1, 2020, vessels will be required to produce sulfur emission levels less than 0.5%. Scrubber installations allow carriers to buy the less expensive higher sulfur fuel. In principle, a scrubber cleans the…

IMO 2020 Mandate – Delays and Uncertainty

Carriers are still struggling to provide firm information on how they intend to handle the International Maritime Organization (IMO) mandate to reduce marine pollution effective January 1, 2020. In two months, vessels will be required to have sulfur emission levels less than 0.5%. The carriers have publicly stated that this new mandate will cost the container shipping industry…

Demurrage and Detention

Shippers have been complaining for years that the rules governing demurrage and detention are unfair. Shippers are required to pick up and return ocean containers to the terminal within a specified number of days. Failure to do so will result in fees to the shipper known in the industry as demurrage and detention. Marine terminals and carriers say the potential to be…

Spot Rates Remain Volatile

Ocean container spot rates from Asia to US West Coast ports increased 25.6% for the week ending August 30th. This is welcome news for the carriers who have been battling declining spot rates for much of the peak shipping season. The good news may not last long for the carriers. Industry experts believe this sharp increase in spot rates will quickly fade away unless…