For the last couple of months, our industry has seen shipping costs reach record highs. Experts who have been in the industry for 35+ years say they have never seen anything like this before. A common questions many companies are asking, “When will this end?”. 

That is a good question. When will this end? Cost are so high that it has finally brought attention to the White House. Last week, President Biden signed an executive order to promote competitive markets and limiting corporate dominance. This order aims at railroads and ocean shipping. 

The order also asks that the FMC (Federal Maritime Commission) to work with the Justice Department on enforcing its actions and to protect against high rates. 

So what does this mean for importers? 

Decreased ocean rates could cause more port congestion and longer delays between the date the booking is made and when the cargo sails. Importers would likely simultaneously plan bookings for backlogged cargo and increase purchase orders to meet the continued record consumer demand. Alleviation would come in the form of additional vessels and containers.  The need to meet demand for transpacific transport could also result in increasingly fewer bookings to inland destinations, which prevent the rapid return and reuse of the container at an Asian port.