Transpacific Shipping Rates set to Increase

file3951258242188Maritime shipping from Asia to the US or from the US to Asia is about to get more expensive for shippers.

The Transpacific Stabilization Agreement, also known as the TSA, is a research and discussion organization consisting of a membership that includes 15 of the largest carriers in that region. From time to time, through their extensive research on cargo shipping in their region, the TSA will suggest alterations for their members. Currently, they are requesting a General Rate Increase (GRI) for all of the shipments, between Asia and the US, in anticipation for the Chinese New Year (also known as the Lunar New Year). Although the Chinese New Year is not set to begin until February 19th, preparations in Far East nations among the workers will result in an early holiday. That is why the TSA would like to see a GRI begin by February 9th.

The reason for the suggested GRI is because the expenses for the carriers can add up during a time of low demand, especially if there is a backlog from the Lunar New Year. However, the revenue increase might not help the carriers with profitability. If the GRI occurs, then shippers will have to prepare for ocean freight shipping rates that are $600 higher for every 40-foot container. This could really impact the budgets of the shippers. Freight rates to the US from Asia increased in recent weeks following a recommended GRI of $1000 in December.

Shippers should prepare to face a GRI. The best way to prepare for the increase is to speak with a loyal freight forwarder who can provide a great shipping deal and top-notch expertise. A freight forwarder will always provide the best possible shipping rates on the market.

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