OD Global: TSA Rate Action

December 2009: It appears the TSA Member carriers operating in the Trans-Pacific Trade lane are poised to begin implementing additional rate actions after the start of the New Year. As it is has been widely publicized in several recent trade articles, there will be no carrier on the Trans-Pacific posting a profit for 2009. Hence, the member carriers of the TSA are all indicating the possibility of rate increases at the start of 2010. The amounts being floated through out the industry are in the area of:

As we clearly understand these are significant increases, it is important to note these are not increases from OD Global and we are working with the carriers to minimize the impact to our customers. It is also important to note these increases will likely fluctuate over the next thirty days as the market reacts to the recent carrier announcements.

Now is also the appropriate time to mention that all the carriers are beginning to implement their winter sailing schedules which will further reduce the capacity on most of the trade lanes through out the first quarter of 2010. Not only will this prevent rates from falling through the traditional “slack season”, it will also require importers to work closely with the suppliers and service providers to insure shipments are booked as far in advance as possible to minimize the potential for origin delays.