IMPORT: Asia to North America (TPEB)

Recent Developments:

• Ocean carriers are not expected to implement general rate increases (GRIs) for the second half of March.
• Uncertainty in the Red Sea continues to influence routing diversions of the Suez Canal.
• Questioned by stakeholders at the TPM24 industry conference, the upcoming Gemini Cooperation (shipping alliance) has faced skepticism over its service model that relies heavily on transshipment.

Rates: The downward trend on rates continues to hold.
Space: Space is mostly open but has tightened in pockets.
Capacity: Carriers remain well-supplied with available vessels to manage transit adjustments spurred by external supply chain events, namely the Red Sea crisis.
Equipment: TRAC Intermodal is investing in buffing its chassis capacity and tracking technologies. While equipment availability is not a concern at this time, the equipment provider says it is preparing for the next surge of U.S. imports.

TIPS:

• Hold your logistics partners accountable for frequent updates regarding current market conditions and routing impacts.
• Be flexible and adaptive to alternative service options, especially as it relates to potential savings on cost or transit.

IMPORT: Europe to North America (TAWB)

Recent Developments:

Rates: Rates are holding steady in March. Low demand remains wielding influence over the market.
Space: Space is open.
Capacity: Carriers are partially curbing overcapacity by reducing the size of vessels operating on transatlantic lanes. Though, significant blank sailing programs have not been implemented.

TIPS:

• Book at least three weeks prior to the ready date.
• Communicate with your logistics partners to ensure that you’re up to speed on the EU ETS program and its evolving impacts on transatlantic trade.
• Keep an eye on carrier discretion when it comes to their managing of the market. While this trade favors shippers at the moment, carriers could become more aggressive with tactics, like rate increases or blank sailings, to prevent further lossmaking.

EXPORT: North America to Asia

Rates: Rates have creeped upward into March.
Capacity: Space remains open, particularly from West Coast ports, however carriers remain curbing capacity via blank sailings and slow steaming as U.S. import demand remains challenged.
Equipment: There are no significant deficits or bottlenecks, however coordinate closely with logistics partners as conditions may vary case by case.

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.