FEU rates above record
JOC's Bill Mongelluzzo, Senior Editor reports carries are imposing another general rate increase ( GRI) that could ripple through the US West Coast to record levels. Eastbound trans-Pacific shipping lines are warning Fowarders to prepare for a Sept. 1 GRI of $4000 per FEU. Which is unbelievable high compared to just a few months ago when imports signed services that ranged from $1,300-$1,600 per FEU.
The Scramble
Canceled Sailings have stopped and carriers have been adding unscheduled vessel departures from Asia, known as extra-loaders. In July, Port of Long Beach has gotten 11 extra loaders and 8 more coming in August. Retailers scramble to import PPE , office supplies, exercise equipment along with other e-commerce fulfillment. All this comes with a sense of urgency in the event the 20-25% tariff is reactivated.
This is an abstract of JOC's article "New GRI set to push Asia-US West Coast FEU rates above record high" posted Aug. 21, 2020.
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