Update: Trans-Pacific Eastbound Sea Cargo Pricing Negotiations

At AIT Worldwide Logistics, we are constantly seeking opportunities to provide competitive prices backed by our best-in-class customer service. With rate negotiation season for trans-Pacific eastbound lanes in full swing, we are hard at work to secure favorable pricing on behalf of our customers who ship their sea cargo with us. Please take a moment to review the following information as we approach the date when new rates are expected to be finalized.

Rate Negotiation Update

Although member carriers of the Trans-Pacific Stabilization Agreement (TSA) have announced a General Rate Increase (GRI) for 2013-14, AIT is confident these will not be the final numbers. Despite the announcement, contracts are far from settled and we expect negotiations to continue well into May.
The latest news is that carriers are trying to extend current rates for another three weeks (until May 20) while hoping that volume will pick up between now and then.

Market Information – Overcapacity

Excess capacity on the trans-Pacific eastbound trade lanes continues to be a persistent phenomenon. We expect this capacity imbalance will widen in 2013 as more new megaships are delivered to carriers this year. Moreover, the Asia to Europe and Asia to South America trade lanes are all slow – meaning the carriers can’t try to create an artificial trans-Pacific supply shortage by shifting their capacity to those other lanes.
Although carriers are trying to force rate increases, AIT’s experts believe the evidence suggests that the reality of supply and demand will soon set in. When it does, we expect the TSA will back off these proposed increases.

What Our Customers Can Expect

We reiterate the following to our valued customers:

Continued Competitive Rates

If your company ships sea cargo with AIT, you can rest assured that in the event of a rate increase, the pricing we ultimately secure for your business will remain at or below market level.

Consultative Communication

AIT will maintain open, consultative communication as the negotiations unfold, providing the information you need to make prudent decisions based on your business requirements.


Please contact your AIT account executive or AIT’s sea operations experts for more information.
We thank you for your continued business with AIT, your global transportation management partner.

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