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Contract rates for container-shipping on transpacific routes are “simply not sustainable”, Lloyd's List said, quoting Bob Sappio, vice-president of Neptune Orient Lines’s APL unit.
Rates for annual contracts, due to begin on July 1, may not cover shipping lines’ costs because of plunging prices in the spot market, the report said.
About 45% of APL’s 1,100 annual transpacific contracts expire on June 30, according to the report. The shipping line moves 95% of its transpacific cargos under long-term deals, the maritime newspaper added.
Negotiations for annual contracts have run past their traditional April 30 deadline across the industry, according to the report.
