Ocean Freight Shipping Rates Increase for Asia to U.S./Canada Imports
Posted by Annette Leahy on Fri, Jun 07, 2013 @ 02:00 PM
As of Monday, July 31, 2013, United States & Canada manufacturers, retailers and wholesalers importing cargo from the Far East will incur an across-the-board general rate increase (GRI), as announced by freight shipping carriers.
The confirmed freight shipping rate levels for ocean containers consisting of standard and refrigerated cargo, embarking from the Far East and imported into the United States and Canada are as follows:
United States and Canadian West Coast:
- US$320 per 20-foot shipping container
- US$400 per 40-foot shipping container
- US$450 per 40-foot HC shipping container
- US$505 per 45-foot shipping container
IPI via the West Coast:
- US$480 per 20-foot shipping container
- US$600 per 40-foot shipping container
- US$675 per 40-foot HC shipping container
- US$760 per 45-foot shipping container
United States and Canadian East Coast via All Water or Intermodal:
- US$480 per 20-foot shipping container
- US$600 per 40-foot HC shipping container
- US$760 per 45-foot shipping container
To some freight shipping customers this may seem like just another in a long series of continuously rising ocean shipping rates. And while there have been steady increases over the years, the fluctuating nature of freight shipping rates is ongoing, with prices rising and falling depending upon factors such as supply and demand, freight shipper competition, and cargo capacity management.
Bill Mongelluzzo, Associate Editor of the Journal of Commerce1 (JOC) wrote an article last year titled Ocean Carriers Flex Their Pricing Power2, which was prefaced with “Trade growth is dragging and capacity is increasing. So why are shippers paying so much more?” This is in apparent reference to the fact that only the shipping industry seems to defy the basic business principles of supply and demand.
Through our freight shipping3 network, we will continue to negotiate with our cargo carrier partners to mitigate these freight rate levels, and keep you up to date on all the latest developments and progress as it happens. If you have any questions, please contact us toll-free at (800) 383-3157.
At ETC International, our overseas freight shipping network has been serving companies in need of commercial and industrial cargo imports since 1984, and we are committed to keeping our customers abreast of the latest shipping industry changes so that they may make the most informed decisions when it comes to import and export freight shipping considerations.
With nearly 30 years experience in overseas import and export freight shipping, we have an expert understanding of all the ins-and-outs of commercial ocean vessel transport. As a result, we are able to provide invaluable information to our commercial clients to help them make the most of their shipping dollars. We provide all the details a company needs to effectively import and export consumer goods and industrial distributions.
We are happy to provide a no-cost, hassle-free rate quote on overseas freight import and export shipping for manufacturers, retailers and wholesalers, and to discuss additional considerations of the overseas shipping process, so your business can reliably ship goods to paying customers or receive goods from overseas freight importers.
You can get your convenient online rate quote right here with just a few clicks:
The Winter Trucking Report released from TAB Bank shows signs of a slow and steady economic recovery according to monthly truck tonnage, fuel costs, perceived business conditions and invoice size. Historically, trends in trucking and transportation serve as good indicators of the greater economy.
TAB Bank Winter Trucking Report Highlights:
Diesel prices are at their lowest point since August with a nationwide average of $3.911
Sales volume for TAB s core group of clients reached its highest point of 2012 in October but has since decreased significantly in the months of November and December as the post-holiday shipping season settles in
For fourth quarter of 2012, total industrial production moved up at an annual rate of 1.0%
Average invoice size for TAB s core group of clients retreated below $1,000 for the first time since September as carriers adjust the fuel surcharge portion of the invoice to account for decreasing diesel prices
Collections of unpaid invoices for TAB s core group of clients reached their lowest point of 2012 in October at 27.47 days but have steadily grown once more to end the year at 30.69 days
We continue to see a mixed bag of industry indicators as the economic recovery continues to unfold within the trucking industry and the economy at large. For example, diesel prices ended the year at their lowest point in months and the Industrial Production Index continues to show steady increases with a 1.0 percent annual increase during the last three months of the year. Our core group of clients posted their strongest sales in October in the past 12 months but that was followed with significant decreases in activity for the months of November and December. The trucking industry is and will continue to be a great barometer for overall economic growth. As the trucking industry experiences growth, the overall economy can expect to follow suit. The economy has rebounded since the statistical low points of 2008 and 2009 but the recovery continues to develop at a slow, but still steady rate, said Eric Myers, TAB Bank vice president of marketing.
Other Recent Headlines…
PULASKI COUNTY, VA –
It is business as usual at the Volvo Trucks plant in Dublin, but come January that won’t be the case for 300 workers losing their jobs
“With the layoffs it’s hurting a lot of people. They’re getting called back for three or four months and then Volvo lay them back off. That hurts them and their families. I think they ought to come up with a different solution to it because I believe it’s hurting everyone in Dublin, said Roy Bowden.
Company leaders blame the decline in industry orders on sluggish job growth, federal budget discussions, and yes, the upcoming presidential election. This is the second major layoff since 2009 when 650 people lost their jobs, but the company brought back more than 700 workers in 2011. Currently, 2,400 people work at the Dublin plant.
“It’s normal for Volvo, you know they always do this, so it’s negative, but they’ll always bounce back, said Loetha Orren.
A company spokesman responded to the concerns, by saying employment at the Dublin facility is based on production and production has declined. The decision was made in the interest of the company’s long-term success.
What you can take away from this is we showed you some very positive job numbers here in the NRV for 2012 yesterday, that the number of jobs added or announced this year has more than doubled the amount of losses. This announcement brings that number closer to even.
Company leaders say they hope production increases in the first half of 2013, which could put some people facing a layoff back to work, much like in the past.
Brandon Borgna with Volvo Trucks media relations, confirms to WSLS plans to layoff about 300 employees at the Dublin plant starting in January of 2013.
“We very much regret having to take this action, which is driven by the well-publicized decline in industry orders. Continued economic concerns, sluggish job growth, the upcoming election and federal budget discussions have impacted orders as customers delay purchasing decisions,” Borgna wrote.
He added that Volvo is focused on keeping the company “competitive,” and making sure that Volvo is a “strong employer for the long term.”
Volvo Trucks in Dublin is expected to layoff around 300 workers next year.
A source tells us the reduction will take place in January.
The company, which employs around 2,400, held an open house in August for local leaders in an effort to become more transparent.
Back early last year as unrest in North Africa was at a peak, you may recall that I posted this brief interview with South African transportation broker and former driver Robert Olivier1 about trucking in South Africa and a then ongoing strike, which had turned violent with no small number of striking drivers taking out fury on their non-striking brethren with sticks, stones and whatever other weapons happened to be handy. Olivier was disgusted, commenting on the debacle this way:
There has been a level of camaraderie amongst truckers, considering the racial divide and language barriers. Remember, we have 11 official languages here. Bloody ridiculous, if you ask me. If I ever returned to the road, I would keep to myself and only mix with people I already knew. I will never have any respect for the average trucker ever again after what has gone down in the past week.
I imagine Olivier is even more disgusted after the past weeks worth of attacks on working drivers by haulers on strike yet again. A tentative deal has reportedly been reached2 for a round of pay increases in the regulated industry there, but this round of bloodshed seems to have dwarfed the previous one. Here s South African News24 columnist Chris Moerdyk, who in a column whose tone is well suggested by its title Striking back at the mothertrucking strikers 3 goes as far as to call the violence indisputable evidence of the virtual nonexistence of civil society in the country:
I cannot get my mind off Gary Stewart, sitting in a truck, minding his own business when some moron throws a brick through the window. He died.
I cannot get my mind off another, as yet unidentified truck driver who was pulled from his vehicle in Manenberg on the Cape Flats and set alight by another moron. He died.
I keep asking myself what I would do if my son or brother were killed by a moron.
Our political discourse in this country is a mite partisan and occasionally nasty, for sure, but how s that for rude? It wasn t so long ago that the passion of economic wars spilled over on U.S. highways, an historical fact memorialized of a fashion in Fred Afflerbach s Roll On novel4. Though the comparison is far from direct, reading heated commentary occasionally on our site and quite often elsewhere, when commenters resort to insults and name-calling in lieu of making a salient point, I m reminded how very slippery the cliff s edge into reality can be.
In any case, let s hope things get better for the truckers in South Africa and, of course, here in the good old U S of A. Any encouraging economic signs out there?
- ^ this brief interview with South African transportation broker and former driver Robert Olivier (www.overdriveonline.com)
- ^ A tentative deal has reportedly been reached (www.iol.co.za)
- ^ Striking back at the mothertrucking strikers (www.news24.com)
- ^ Fred Afflerbach s Roll On novel (www.overdriveonline.com)
Trucking has recovered from the recession much better than the economy at large, but the rebound slowed in recent months, economist Jim Meil said. Various domestic and global trends cast doubt on what s next.
Meil, vice president and chief economist for Eaton Corp., addressed the Commercial Vehicle Outlook Conference in Dallas today.
A former professor, Meil rated the state of trucking a B+. That s largely due to a rebound in U.S. manufacturing (B) and non-defense capital spending (A-). He said other recovering domestic sectors are mining and residential and commercial construction.
Truck freight should grow 3 percent this year and in 2013, though the gross domestic product will see only 2 percent growth in those years. That s the fourth year of lackluster growth after the worst post-war recession, Meil said.
During the recession, there was an estimated surplus of 175,000 Class 8 trucks, Meil said. Now there is a slight shortage. That s good for carriers in terms of keeping their utilization rates and pricing high. Trucking has lost some business to rail intermodal due to the capacity crunch.
Class 8 orders were strong in the first quarter, then the bottom dropped out, he said. Now we re in the fourth month of a slowdown in orders.
The cause isn t obvious, but might be related to high levels of uncertainty among buyers. They are likely concerned about the economic impact of the election and how the fiscal cliff crisis mandated spending cuts for January 2013 is handled.
Nobody really believes all these tax increases or spend cuts will take place, Meil said. But even if only some do, it will present a pretty significant fiscal challenge for the economy to overcome.
Other uncertainty involves problems with the global economy, he said. Europe is definitely in a recession, and China, India and Brazil are not living up to expectations of being dominant economic powers.
CVOC was sponsored by Bridgestone, Castrol Heavy Duty lubricants, Chevron, Espar Heater Systems, Freightliner Trucks, Kenworth, Paccar Engine, Peterbilt, TRP and Valvoline.
The freight forwarding industry has come through the recession with its profitability relatively intact, but it has been a volatile and difficult year, say consultants Transport Intelligence (Ti). Global Freight Forwarding 20122 published on 12 July and one of the few surveys dedicated to the industry found that overall freight forwarding volume bounced back in 2010 from the low point reached following the bank collapses and global credit crisis in 2009, although it had stagnated since. Overall, the top freight forwarders profit margins were also maintained, although there was widespread variation in profitability between different forwarders.
Freight forwarders are affected by the wider shipping and airfreight markets, but the market is counter-cyclical , says Ti, in that profits can be higher during downturns. Rates can be driven down by excess capacity in the market but forwarders may not pass the whole of these reductions on to their customers, thus increasing their profit margins.
On the other hand, as the economic picks up and capacity starts to tighten, forwarders may find it hard to pass on rate increases to their clients although they may still benefit due to increased volumes. However, the market for freight capacity is often complex and can be affected by outside events.
The 12 largest freight forwarders profits have also been remarkably resilient remaining at around 4-5% over the past six years, says Ti. This however is an average there is a considerable range in the profitability of the leading forwarders, ranging from Expeditors margin of over 10% down to around 2-4% at the other end of the scale.
Global Freight Forwarding 2012 by Transport Intelligence examines the state of the air and sea forwarding market, key trends and developments in 2011 and the first half of 2012 and the structure and drivers of the market and their implications for the future.
It also provides an exclusive and wholly independent source of market shares for the leading players and ranking of the largest air and sea freight forwarders in terms of revenues, air tonnage and teus shipped.
The report includes market sizing and five year forecasts by sector (air and sea) for the six main world. It also contains air and sea freight forwarding market sizing and forecasts for 40 individual countries including all major and developing economies.
Priced 1095/$1850, can be purchased online at: http://www.transportintelligence.com/market-reports/report-global-freight-forwarding-2012/293/3
- ^ Posts by Chris (www.fbj-online.com)
- ^ Global Freight Forwarding 2012 (www.transportintelligence.com)
- ^ http://www.transportintelligence.com/market-reports/report-global-freight-forwarding-2012/293/ (www.transportintelligence.com)
- ^ freight forwarding (www.fbj-online.com)
- ^ Transport Intelligence (www.fbj-online.com)
While the increased focus on growing our export base is to be welcomed, operators in the road haulage industry may not survive without a much-needed injection of liquidity in the market warned Adrian Madden, Close Brothers Commercial Finance Ireland.
The road haulage industry contributes over €1 billion to the general exchequer and receives no financial assistance from the Government.
Madden, who heads up the Irish asset finance arm of UK FTSE 250, specialist financial services group Close Brothers Plc, was speaking at the launch of the company’s first White Paper designed to assist the road haulage industry as it seeks to drive forward the economic recovery.
‘Keeping the wheels turning’ was produced in association with the Irish Road Haulage Association, the national representative body of the licensed road haulage industry in the Republic of Ireland.
Madden, Close Brothers Commercial Finance commented: “Driving forward growth and economic recovery will not take place without increasing our export base. 95% of Irish freight and 90% of our manufacturing output is moved by the road haulage industry. The sector has worked hard to become more competitive, absorbing the increasing costs from road taxes and fuel increases – but this cannot be sustained.”
“The crippling effect on their cash flow is threatening to put many companies out of business and that is exactly why we have partnered with the IRHA to raise awareness of what government needs to be doing, but also to enable companies to access the vital funds they need.”
Eoin Gavin, Irish Road Haulage Association (IRHA) President said: “The IRHA is calling on the government to support the road haulage industry through the implementation of an essential user fuel rebate which could be of critical importance to the survival of the industry and the countless direct and indirect jobs associated with the industry.
“The IRHA estimates that the sector contributes over €1 billion to the general exchequer each year via fuel duty, road tax, PAYE and PRSI all without any financial assistance from the Government. The sector is in fact a net contributor to the State.”
The RHA notes the Chancellor’s decision to go ahead Alistair Darling’s inflationary package of three fuel duty increases in the next eleven months.
RHA – RSS