Capacity crunch coming: JOC

NEWARK, N.J. — For the first time in a while, manufacturers and retailers are starting to experience problems securing transport for international shipping.

The Journal of Commerce reports that growing consumer confidence and a recovering global economy is leading to more companies raising capacity and service issues to the forefront of contracting for space this season.

Lengthy delays — mainly at Asian ports — is increasing the prospects for higher pricing and shipping costs, says the JOC.

Many companies are making space guarantees their priority in the annual negotiations for the eastbound Pacific service contract.

"Right now, people are paying unbelievable prices to guarantee space. There’s a bidding war going on," said Dave Akers, managing director of the Toy Shippers Association, which negotiates service contracts for its members.

The complete article discusses the impact of Asian-trade-lane delays on pricing and loyalty, increases in capacity forecasted for 2010 and what this means for shippers and carriers alike. 


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