Supply Chain Research

The U.S. Congressional maritime subcommittee has proposed changes to the law that may preclude shippers from being part of both an alliance and a rate setting agreement. One such conflict may involve the Transpacific Stabilization Agreement, which sets guidelines for rates across the Pacific rim. The largest members of all three shipping alliances are signatories to the TSA. Shippers would need to choose between alliance-driven route optimization and TSA-driven rate stability (at least on U.S.-bound routes). Panjiva analysis shows that rates on the TSA routes have smaller average weekly ...