Steamship lines have complained for years that shippers book more containers than what are required to meet their shipping needs. It is common practice for some shippers to place excess container bookings to protect space only to cancel these bookings prior to the sailing date.  Steamship lines claim that for every four containers booked, only three show up for the sailing. They say that unless some type of deterrent is introduced in the industry, booking cancellations will continue to be the norm.

CMA is the latest carrier to try to impose a deterrent in the form of a booking cancellation fee. CMA is testing the booking cancellation fee on cargo moving in the North Europe – Middle East trade. Effective June 1, 2017, CMA will impose a booking cancellation fee of $150 per TEU for container bookings cancelled seven days or less prior to the cut-off date. CMA believes this action is necessary to protect their customers that have legitimate bookings.  CMA is not the first steamship line to try imposing penalties for booking cancellations. Past attempts by steamship lines to charge monetary penalties to deter false bookings have failed.

Shippers acknowledge that booking cancellations are a major problem plaguing the industry. They understand that a fix is necessary but any solutions cannot be one-sided. Shippers often question why there are no penalties imposed on the steamship lines when cargo is arbitrarily moved or bumped to a later sailing date. If a booking is accepted by a steamship line, shippers have every right to expect the container to ship on the original shipping date.

The biggest complaint from shippers is when steamship lines accept a booking for a ship that is already overbooked. This practice is prevalent in the Asia to US trade. Steamship lines will say this practice has become necessary because 25% of the bookings they receive ultimately end up being cancelled by shippers.  They are not willing to run the risk of having a ship sail that is 25% under capacity. This cycle will continue until shippers and steamship lines can agree upon enforceable solutions that benefit both sides.

IHSA recently concluded ocean contract negotiations with 11 steamship lines providing service to and from the United States. The confidential contract rates are valid through April 30, 2018 and are not subject to base rate increases during the life of the contracts.

 

The International Housewares Shippers Association (IHSA) is a not-for-profit association formed to benefit companies belonging to the International Housewares Association (IHA). Through the combined leverage of members, IHSA negotiates freight contracts and partners with other logistics providers to lower supply chain costs.

IHSA’s main function is to negotiate the lowest possible transportation rates and provide the highest quality service for all participating members. Additionally, IHSA members receive valuable market intelligence and advice through regular newsletters and briefings.

IHA member companies looking to reduce their ocean freight costs or have questions about an ocean freight issue are encouraged to contact IHSA to learn about the program.  Contact IHSA at +1-513-489-4743 and learn more on our website.

Share:

Facebook
Twitter
Pinterest
LinkedIn
Email
Reddit

Connect on Social Media

Similar Content

Housewares Charity Foundation To Honor Three Industry Philanthropists During Annual Housewares Cares Gala

Mark Eichhorn, CEO, Anchor Hocking Co., Marcus Lemonis, executive chairman, Beyond and Esther Suen, vice chairman & managing director, Simatelex Manufactory Co. Ltd., will be honored for their philanthropic endeavors by the Housewares Charity Foundation (HCF) during its annual Housewares Cares Gala on Monday, March 3 during The Inspired Home Show® 2025 in Chicago.

Read More »

Housewares Industry Unites To Assist Residents Affected By Southern California Wildfires

Members of the home and housewares community are uniting to help residents affected by the recent wildfires in Southern California. Since January 7, 2025, 57,529 acres have burned, 28 fatalities have been recorded and 16,255 structures have been destroyed, according to the California Department of Forestry and Fire Protection. Thousands have lost their homes, creating a unique opportunity for the home and housewares industry to take action.

Read More »

The Inspired Home Show® 2025 To Welcome Wide Range Of Top Brands And New Exhibitors To Premier Event

When The Inspired Home Show opens in just six weeks, attendees will be greeted by over 1,600 exhibitors including more than 250 new and returning exhibitors and a diverse array of long-time market leaders, up-and-coming companies and entrepreneurs. The Show brings the home and housewares industry together in a dynamic environment to explore new products, new insights and countless opportunities to strengthen partnerships and build connections.

Read More »
Get The Latest Updates

Subscribe To Our Newsletter

No spam, notifications only about new member updates & products.

On Key

Related Posts

Housewares Industry Unites To Assist Residents Affected By Southern California Wildfires

Members of the home and housewares community are uniting to help residents affected by the recent wildfires in Southern California. Since January 7, 2025, 57,529 acres have burned, 28 fatalities have been recorded and 16,255 structures have been destroyed, according to the California Department of Forestry and Fire Protection. Thousands have lost their homes, creating a unique opportunity for the home and housewares industry to take action.

The Inspired Home Show® 2025 To Welcome Wide Range Of Top Brands And New Exhibitors To Premier Event

When The Inspired Home Show opens in just six weeks, attendees will be greeted by over 1,600 exhibitors including more than 250 new and returning exhibitors and a diverse array of long-time market leaders, up-and-coming companies and entrepreneurs. The Show brings the home and housewares industry together in a dynamic environment to explore new products, new insights and countless opportunities to strengthen partnerships and build connections.

Picture of IHA

IHA

Lorem ipsum dolor sit amet consectetur adipiscing elit dolor

Log in to gain access to your permitted IHA resources.

Don’t have an account? Register here now!

Skip to content