IMPORT: Asia to North America (TPEB)

Recent Developments:

• Trade association National Retail Federation has upgraded its U.S. import forecast, expecting the surge in import activity to sustain through September.

Rates: Another wave of general rate increases (GRIs) will be implemented at the start of June. This surcharge will affect origin ports across Eastern Asia countries, such as China, Taiwan, Thailand, and Vietnam.

Continuing occurrences of GRIs have accelerated rates to high levels. In addition, strong demand has allowed these increases to sustain over the last several weeks.
Space: Space has tightened due to both rising demand and, while not as frequent as the past several months, carrier-enforced blank sailings.
Capacity: Generally speaking, vessel capacity has been better served across the market as demand prompts more utilization.
Equipment: Rising demand and longer vessel transits for outbound shipments from China have led to a crunch in equipment capacity at Chinese ports, notably Ningbo, Dalian, and Guangzhou.

TIPS:

• Hold your logistics partners accountable for frequent updates regarding current market conditions and routing impacts.
• As the market shows indicators of heating up, familiar yourself with the potential hurdles that can occur amid cases of tightened capacity and handling delays.

IMPORT: Europe to North America (TAWB)

Rates: Rates have ebbed and flowed as the trade rediscovers its balance. There has been no confirmation from carriers of GRIs in June.
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 continue to climb into June.
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.