Tuesday, July 7, 2009

Container Lines once again try to increase rates

From my blog posting of March 20, 2009

Ocean Rates Will Not Go Up

(In reference to the TSA)...What these guys don't understand is, you can't restore market discipline by saying "don't do that". You restore market discipline by getting the supply more closely matched with demand.



I am repeating this, because once again, the idiots at the TSA are getting together to once again attempt to fix prices. But, they aren't very good at it.

The lines decided on a $500 increase for carrying a 40-foot box from Aug. 10 as a “voluntary guideline,” the Transpacific Stabilization Agreement said in an e-mailed statement yesterday. The companies will also raise fuel levies and may add peak season surcharges as well, the group added.

click here for complete article from Bloomberg

Carriers will start going bankrupt, or be taken over, in the next year (my best guess).

Some of these carriers are so badly managed they deserve to go out of business.

Survival of the fittest.

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