Orient Overseas Container Line has advised its customers that its previously announced peak season surcharges in the eastbound Pacific will be delayed until Aug. 1.
The surcharges will be $320 per 20-foot container, $400 per 40-foot container, $450 per 40-foot high cube and $505 per 45-foot high cube.
OOCL’s action is in line with peak season surcharge delays announced by other carriers as the U.S. import trade from Asia adjusts to a capacity overhang.
The Transpacific Stabilization Agreement, which represents most of the carriers in the eastbound Pacific, had originally announced a peak season surcharge of $400 per 40-foot container to run from June 15 until Nov. 30. As that date approached, many of the TSA lines announced a delay in the surcharge until July 15.
Industry analysts earlier this year projected growth of 6 to 9 percent in the eastbound Pacific.
However, capacity is growing at a faster clip than demand as existing carriers have added strings and several niche carriers entered the eastbound trade this year. Therefore, although the trade is close to meeting the projected cargo volume, excess capacity is causing rates to erode. In this environment, carriers are finding it difficult to impose a peak season surcharge.
Analysts are now projecting a short but intense peak season that will run from late August into October.
The Journal of Commerce Online
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