Importers face huge contract rate increases (From American Shipper)
Spot rates remain stratospheric. California port congestion keeps breaking records (there were 40 container ships at anchor in San Pedro Bay on Monday — a fresh all-time high). Liners are canceling voyages this month due to the port crunch, pushing even more volume to the months after Chinese New Year. It now appears spot rates will remain strong all the way through the second quarter. They may ebb from current highs, but they almost certainly won’t crash. This is exactly the scenario U.S. importers feared. They will have to negotiate their annual contracts — which generally expire by May 1 — in the midst of a spot-rate boom. For more info, please go to