Mid-Sized US Retailers Flex Newfound Muscle in Trans-Pacific Contract Negotiations with Carriers
During 2023-24 service contract negotiations with carriers, US retailers are taking advantage of low trans-Pacific spot rates, resisting rates above $2,000 per FEU and, in some cases, pushing for levels significantly lower than that for West Coast delivery. Contracts go into effect on May 1. However, some importers who were about to finalize their negotiations have backed down because spot rates have continued to fall. While large retailers typically set the market floor for service contract rates and sign agreements by early March, large retailers are reportedly pushing hard this year to secure low rates, which is delaying their negotiations.
Source of information – Journal of commerce
Mid-sized retailers are banding together to form buying groups which increases their leverage and negotiating power with carriers