MAJOR logistics providers say the gap in asking prices between shippers and container lines has effected a slow-down in this year's transpacific contract talks, reports the UK's Seatrade Maritime News.

May brings the annual contracting between carriers and shippers to an end in Asia and the US, making a sellers＊ market because of the war risk posed by the Red Sea crisis.

"Contract rate negotiations on the transpacific for May 2024 are still unsettled due to a significant discrepancy between asking prices and what shippers are prepared to pay," DHL said in its April Ocean Freight Market Update.

Said Alvin Fuh of the Dimerco Express Group, "The disparity between ideal rates sought by Beneficial Cargo Owners (BCOs) and carriers this year is causing a significant gap, potentially slowing down service contract renewals compared to previous years.

"This scenario may limit carriers' ability to accommodate lower-fixed-rate bookings if rates fall below their viability threshold, urging BCOs to seek solutions from reputable Non-Vessel Operating Common Carriers (NVOCCs) for assured space and rate stability."