The world s largest container trade lane, the trans-Pacific, remains severely imbalanced, leaving ocean carriers squeezed by cost and competitive pressures for the foreseeable future. Only in the past year have shipping lines restored a measure of profitability, which has clearly been hard-earned. Competition has increased, with improved rates attracting new services into the Pacific. Many new entrants have joined alliances and ordered larger vessels, signaling a long-term commitment to the market. Alliances provide greater routing and transit time flexibility.
Equipment is more readily available during peak periods.
On-time performance has improved. Trans-Pacific lines are focused on putting their economic houses in order, as they add more contract logistics services to their transportation portfolios. Carriers have taken a fresh look at their operations and found that revenue gains are not keeping pace with costs. Carriers collect just over half of their true per container fuel costs through special charges. Trucking, intermodal rail and longshore labor costs are all expected to increase.