Tools that Create Value vs. Prevent Value Leakage
Tools that Create Value vs. Prevent Value Leakage
Tools that Create Value vs. Prevent Value Leakage
Tools that Create Value vs. Prevent Value Leakage
Jun 17, 2024
5-8 min read
Tools that Create Value vs. Prevent Value Leakage
It’s not demand, but worries about finding peak season capacity later in the summer that have driven the trans-Pacific container shipping market into a frenzy.
Container spot rates are soaring. Some shippers, drawn from two years of disruption, which led to some logistics managers losing their jobs, are willing to pay thousands of dollars more to ensure they get slots and container equipment. As of Tuesday, container spot rates, as measured by Drewry, were about $7,800 per FEU from North Asia to the US West Coast, compared with a record high of $15,214 per FEU in September 2021.
All stakeholders have for the past seven months been hoping that the Red Sea crisis would soon be resolved, thus allowing the markets to revert to normality.We should still maintain this hope. However, we have also reached a point where stakeholders need to seriously consider their plan B in case the current situation persists for several more years to come.
Rate rise continues
There is certainly no sign of rate levels coming down yet, with port congestion in Asia and the Mediterranean delaying ships, disrupting schedules and creating growing shortages in equipment for Asian exporters.
Average spot market prices are now well over $6,000 per FEU on some rate indices, with the Shanghai Containerized Freight Index showing a 12.6% increase in spot ocean rates ex-Shanghai last week, the 10th consecutive week of rising rate levels.
How does having control of procurement more than the first level has helped procurement teams?
“We like the fact that we can use this one platform to hold all of our carrier rates - import / export / FCLl and LCL. It enables us to communicate faster with our customers and ensure that we are able to select the best option based on both price and service offering. Customer support is fantastic - they want you to get the most out of the platform. Once set up, it's also quite easy to maintain.”, Vanissa Richards, leading Australia based Complete Global Solutions, after utilizing Freightify's rate management suite.
Tools that Create Value vs. Prevent Value Leakage
It’s not demand, but worries about finding peak season capacity later in the summer that have driven the trans-Pacific container shipping market into a frenzy.
Container spot rates are soaring. Some shippers, drawn from two years of disruption, which led to some logistics managers losing their jobs, are willing to pay thousands of dollars more to ensure they get slots and container equipment. As of Tuesday, container spot rates, as measured by Drewry, were about $7,800 per FEU from North Asia to the US West Coast, compared with a record high of $15,214 per FEU in September 2021.
All stakeholders have for the past seven months been hoping that the Red Sea crisis would soon be resolved, thus allowing the markets to revert to normality.We should still maintain this hope. However, we have also reached a point where stakeholders need to seriously consider their plan B in case the current situation persists for several more years to come.
Rate rise continues
There is certainly no sign of rate levels coming down yet, with port congestion in Asia and the Mediterranean delaying ships, disrupting schedules and creating growing shortages in equipment for Asian exporters.
Average spot market prices are now well over $6,000 per FEU on some rate indices, with the Shanghai Containerized Freight Index showing a 12.6% increase in spot ocean rates ex-Shanghai last week, the 10th consecutive week of rising rate levels.
How does having control of procurement more than the first level has helped procurement teams?
“We like the fact that we can use this one platform to hold all of our carrier rates - import / export / FCLl and LCL. It enables us to communicate faster with our customers and ensure that we are able to select the best option based on both price and service offering. Customer support is fantastic - they want you to get the most out of the platform. Once set up, it's also quite easy to maintain.”, Vanissa Richards, leading Australia based Complete Global Solutions, after utilizing Freightify's rate management suite.
Tools that Create Value vs. Prevent Value Leakage
It’s not demand, but worries about finding peak season capacity later in the summer that have driven the trans-Pacific container shipping market into a frenzy.
Container spot rates are soaring. Some shippers, drawn from two years of disruption, which led to some logistics managers losing their jobs, are willing to pay thousands of dollars more to ensure they get slots and container equipment. As of Tuesday, container spot rates, as measured by Drewry, were about $7,800 per FEU from North Asia to the US West Coast, compared with a record high of $15,214 per FEU in September 2021.
All stakeholders have for the past seven months been hoping that the Red Sea crisis would soon be resolved, thus allowing the markets to revert to normality.We should still maintain this hope. However, we have also reached a point where stakeholders need to seriously consider their plan B in case the current situation persists for several more years to come.
Rate rise continues
There is certainly no sign of rate levels coming down yet, with port congestion in Asia and the Mediterranean delaying ships, disrupting schedules and creating growing shortages in equipment for Asian exporters.
Average spot market prices are now well over $6,000 per FEU on some rate indices, with the Shanghai Containerized Freight Index showing a 12.6% increase in spot ocean rates ex-Shanghai last week, the 10th consecutive week of rising rate levels.
How does having control of procurement more than the first level has helped procurement teams?
“We like the fact that we can use this one platform to hold all of our carrier rates - import / export / FCLl and LCL. It enables us to communicate faster with our customers and ensure that we are able to select the best option based on both price and service offering. Customer support is fantastic - they want you to get the most out of the platform. Once set up, it's also quite easy to maintain.”, Vanissa Richards, leading Australia based Complete Global Solutions, after utilizing Freightify's rate management suite.