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The market from Asia to North America remains very strong due to a combination of factors. High import volumes, equipment shortages at key ports (especially North China), weather delays and congestion at major Asian ports, and tight capacity are all impacting the trade, creating a perfect storm resembling the shipping challenges experienced during the pandemic. An early peak shipping season was expected, but the strength and timing of this surge has taken most industry analysts by surprise.

Spot rates from Asia to the US are scheduled to increase another $1000 per FEU as of June 1. Carriers are still working through rollover pools at Asia-origin ports, and vessels are still booked up several weeks in advance. Carriers are loading higher-paying cargo with priority and severely limiting the release and loading of fixed contract rate bookings.

At this point, it appears likely that these market conditions will last at least through the summer months. Beyond that, there are many uncertainties: pending US East and Gulf Coast labor contract negotiations, potential Canada rail and border crossing labor strikes, and impacts of the latest upcoming tariff increases on volumes, among others.

Early booking is required in this tight market; please be sure to place bookings at least 3-4 weeks in advance, and even earlier if possible.

 

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Your CVI team is here to assist you through these current market challenges. Ocean freight, air freight, domestic road/rail, and Customs Compliance – count on our dedicated professionals to care for you and your supply chain. Call us and let us show you what we can do!

 

Rachel Shames

VP, Pricing & Procurement

CV International, Inc.

 

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Rachel serves as Vice President, Pricing and Procurement for CVI. Her responsibilities include vendor selection, contract management and negotiation, transportation pricing, FMC compliance, and international agent network management.

Rachel began her career in international shipping with CMA-CGM America. She joined CVI in 2011, gaining experience in various departments with a focus on inside sales and marketing for the company. In 2014, Rachel assumed the role of Manager, Transportation, working on service procurement and development of client proposals. She has served in her current position since 2018.

A native of Norfolk, Virginia, Rachel earned her bachelor’s degree from the University of Michigan in 2005. She holds a Master of Business Administration with a concentration in Maritime and Supply Chain Management from Old Dominion University.

– Rachel Shames, VP, Pricing & Procurement, CVI
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