Are Trans-Pacific Freight Costs About to Rise?

According to Logistics Management:

As the peak transpacific season approaches, ocean carriers comprising the industry's last rate-fixing cartel will try to charge shippers more. The CEOs of container shipping lines of the Transpacific Stabilization Agreement (TSA) have collectively voiced their intentions to raise rates as 2009-10 service contracts are being negotiated.

Now is not exactly the right time to be absorbing increased costs, and it's definitely the wrong time to be passing added costs on to your customers. However, this economic slowdown is the perfect time to have an experienced third party review your international distribution model and identify opportunities to eliminate unnecessary fees and outdated rate structures.

Like we've said before, the companies that exploit the market slowdown will have the competitive advantage when the economy turns around. Those 'leaner' companies will have leveraged independent expertise to enable more profitable partnerships with existing vendors and customers.