By: Gary Ferrulli

Gary Ferrulli — Wed, 25 Oct 2017 16:06:23 +0000

A few comments. First, pricing and rates should be a science with a touch of art, instead it is emotional
reaction to “them” most of the time; or “we need 50 more boxes this week so —-“.. The real objective should
be to maximize revenue, a combination of volume and rate (the art part). The noted $700. rate today from Asia
to the West Coast is just foolish in today’s market, it impacts a high percentage of the carriers lift, even if for a
week or two.
On the other hand, announcing a GRI of between $700. to $1100. per container is a waste of time, energy,
and ink. The only people who gain from it are the data input people into automated rating systems; they insert the increase
and then the next few weeks they make thousands of changes – nnoe of them neutral or higher, all reductions.
Common sense has to start to prevail, we are down to 5 carriers having 63% of the global capacity going up to 68%
in 2020.. Get serious and real and start to make money, not once every 7 years.

Comments on: What’s Happening with Ocean Freight Rates?

By: Gary Ferrulli