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There’s a lot at stake for container lines’ 2024 bottom lines in the last few weeks of 2023. If lines can’t push up spot rates very soon, next year’s annual contract rates will reset much lower versus this year’s.
That scenario – which would have a very negative financial effect on liners – looks increasingly likely. Time is running out for a fourth-quarter rebound, and indexes show spot rates falling, not rising.
Shipping lines’ attempts to use general rate increases (GRI) this month to improve their negotiating hand for annual contract resets have failed. They have one last chance in December, but their track record of getting GRIs to stick has been poor.
Read more in an article from American Shipper.