Market Update |

Hello From Chain Logic,

As we approach Peak Season, the world of ocean freight is showing signs of instability. Blank Sailings, vessel reduction, capacity manipulation, General Rate Increases and port strikes all give way to an unsteady market.

Steamship lines have taken aggressive action to withdraw capacity in July. Overall, capacity reductions in July exceed monthly totals from May and June. The results are weakened space availability on key trade routes from Asia to North America. Cargo destined for US East and West coasts, particularly from China are now full weeks in advance. We recommend adjusting booking timelines to meet the current forecasted booking fulfillment. Asia shipments should be booked no less than four weeks in advance, and for optimal space and rate choices, six to seven weeks in advance.

Pacific Southwest trade is deteriorating further, and there are signs this trend will continue. As a result of reduced capacity as well as service mergers, where carriers consolidate service loops from higher numbers to less we see sharp declines in availability. Looking ahead to August, the current published blank sailings are less in total compared to July, with a high concentration in the first week of August. If carriers do not take action to implement further blank sailings in August on short notice, there is the potential for space improvement. The matter of PSW trade is further exacerbated by the ongoing strike issues impacting the ports of Vancouver and Prince Rupert.

All signs in the market indicate the potential for current import costs to remain flat or elevated. As we move closer to Peak Season, cargo demand will increase. This increased demand, coupled with reduced capacity and the potential for backlogs caused by port strikes all culminate to healthy markets for providers to hold costs steady.

Please adjust planning timelines and budgetary concerns to reflect these current market conditions.