Container shipping lines to cut free time, increase surcharges in 2021 contracts
Companies negotiating annual container shipping contracts with shipping lines before the end of the first quarter can expect increases in peak season surcharges and decreases in allowable free time with the container, as shipowners gain leverage from increased demand, industry participants say.
The widespread shortage of empty containers in Asia will compel shipowners to use their greater bargaining power to finally slash free time, the number of days a beneficial cargo owner is given to return a container to the owner, Stephanie Loomis, Vanguard Logistics Services vice president, said during a panel discussion at the virtual TPM conference.