The upcoming TPM24 conference in California will serve as the negotiation kick-off for US importers to establish new long-term contracts. In these discussions, carriers are likely to leverage the recent uptick in the global XSI and a 180 per cent rise in the spot market on the Transpacific trade since mid-December to advocate for higher rates in the forthcoming agreements.
Conversely, US shippers are expected to highlight the XSI sub-index for US imports, which saw a modest decrease of 3.3 per cent in February, alongside a softening spot market, to argue for more favourable contract terms closer to their current agreements' level.
“We have seen the impact of the Red Sea surcharges on long term rates at a global level but are we now going to see it on a regional level, particularly on the Transpacific? Importers into the US West Coast will say this is a problem between Asia and Europe and we’re not willing to pay more. Carriers will say this is a global problem because we have to redeploy capacity from the Transpacific onto other trades which are directly affected by the Red Sea diversions,” said Michael Braun, Xeneta VP of customer success and solutions.
ALCHEMPro News Desk (DP)
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