IMPORT: Asia to North America (TPEB)
Rates: Another round of rate increases (GRIs) is widely expected to hit the trade on July 1. While the amount of these surcharges is still to be determined, there is a chance that container rates to the East Coast could surpass $10,000.
Space: Space continues to squeeze. In some cases, carriers have not allotted the entirety of space granted within their contracts with shippers and NVOs.
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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 (TAWB)
Labor: Earlier this month, 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.
Rates: Rates have levelled off, considerably higher than they were in March, but significantly lower than they were following an upward jolt in April.
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: Rates are level after taking an upward climb in May.
Capacity: Generally speaking, capacity is available, but U.S. export movement can be influenced, even hindered, when more attention is placed on the import 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.