Shippers reported no major swings in rates and capacity on the eastbound transpacific lane, according to the results of the latest American Shipper Transpacific Pulse survey.
Nearly 60 shippers were polled in the survey, conducted May 31-June 7. More than 70 percent of respondents said their rates had either remained the same or increased or decreased moderately in the last month. Only 8.5 percent said their rates had increased or decreased significantly. Another 13 percent said their rates are locked in for the year and are not affected.
As for capacity, more than 36 percent referred to capacity levels as minute, with another nearly 30 percent calling it soft and nearly 13 percent calling it very soft. Only 6.4 percent called it tight and no shippers called it very tight.
And the majority of respondents – nearly 60 percent – believe capacity will increase over the next quarter, though 57 percent of that 60 percent said it will only increase moderately. More than 19 percent said capacity will remain the same, while 10.6 percent said it will decrease moderately.
Despite even or soft capacity at present, and despite the fact that shippers believe capacity will increase, more than a third of respondents believe rates will rise in the coming weeks. Three quarters of those believe the increases will be moderate. Around 30 percent believe rates will remain the same, and 6.4 percent said they will decline moderately.
Meanwhile, more than 36 percent of respondents said they were happy with the rates and service they achieved in spring contract negotiations. Twenty-one percent said they were happy with the service but not the rates they got, and 8.5 percent said they were happy with their rates but not the service, and nearly 15 percent said they were happy with neither.
Respondents were broken up evenly between retailers (30 percent), manufacturers (30 percent), and 3PLs (32 percent). – Eric Johnson
TP Pulse: Shippers expect no big rate, capacity swings
