PRESS ROOM

The U-Freight Group  has a comprehensive portfolio of LCL and FCL container shipping services around the world and notes a prediction by Dreary Maritime Research that shippers in the transpacific and Asia-Europe trades can look forward to 55 to 85 percent reductions in shipping costs in 2023 compared to last year.

Dreary says that beneficial cargo owners (BCO) in this latest contract negotiation season have set aggressive target rates - some as low as USD1,200 per feu from Asia to the US west coast.

In addition to securing much lower rates, shippers are receiving improved service this year. Transit times are twice as fast as a year ago and port congestion at major ports has reduced by 50 percent in North America and 60 percent in Europe, Drewry added.

Looking ahead, Drewry believes that it will become more important for shippers to understand the breakeven cost of ocean carriers, for the purpose of setting realistic target rates.

This is the largest year-on-year reduction in shipping costs for at least seven years, said Drewry.

When Drewry presented at Logistics Management Magazine's popular, annual "Rate Outlook" webinar back in January, it said that contract rates this year would fall by at least 50 percent year on year, and shippers would also be able to secure better terms and conditions, on things like payment terms and liquidated damages.

With hindsight, it now believes it should have said at least 60 percent.

You can find more information about the U-Freight Group’s ocean freight services by visiting our website or speaking to your usual contact in our company.