Space: Space continues to squeeze. In some cases, carriers have not allotted the entirety of space granted within their contracts with shippers and NVOs.

Question or concerns on how this market change will affect your upcoming shipments? Get in touch with us today!

Capacity: Stronger demand and longer voyages around southern Africa (due to geopolitical uncertainty in the Red Sea) have filled available capacity.

Congestion: A few Asian origins are reporting congestion and extended wait times. While Singapore has become the most publicized example, certain Chinese ports, like Ningbo, are also working through backlogs.

TIPS:

• Do not “wait it out”. Market conditions are not likely to soften anytime soon as peak shipping season is underway.
• Hold your logistics partners accountable for frequent updates regarding current market conditions, mainly continued instances of rate increases.
• Strongly consider booking shipments farther in advance as demand strengthens and space tightens.

IMPORT: Europe to North America (Transatlantic Westbound)

Labor: In June, the International Longshoremen’s Association (ILA), representing unionized dockworkers at U.S. East and Gulf coast ports, indefinitely suspended negotiations for a coastwide contract with maritime employers, citing a dispute with automation.

If a new labor deal is not squared away by the end of September, ILA leadership has vowed that a coastwide dockworker strike will occur.

Rates: Rates have shown little change since decreasing in April, indicating a relatively, and cautiously, healthy market.

Space: Space is open.

Capacity: Reassuring demand from U.S. importers has prompted better utilization of available capacity.

TIPS:

• Book at least three weeks prior to the ready date.
• Keep an eye on East Coast labor uncertainty as a coastwide strike could occur as early as October if no contract is settled between dockworkers and maritime employers.

EXPORT: North America to Asia

Rates: Outbound rates from the West Coast have plummeted to levels last seen in April. Rates out of the East Coast have levelled off, showing far less volatility.

Capacity: As seen during the pandemic, export service is vulnerable to playing second fiddle whenever carriers set their focus on a more favorable import market, as prioritizing inbound business is more profitable. As imports strengthen, exporters should heed this tendency in the market.   

TIPS:

• Insufficient communication with sailing schedules can lead to higher detention and demurrage fees as well as higher trucking and storage costs. Ensure your logistics partners are not keeping you and your cargo in the dark.