The rate decline continues on most Transpacific Eastbound trade lanes. Rates to USWC ports are at pre-pandemic levels, under carriers’ breakeven levels, with little room for additional reduction. Volumes have declined significantly to USWC ports due to uncertainty surrounding labor contract negotiations. Rates to USEC and USGC ports are still falling, quickly approaching pre-pandemic and carrier breakeven levels. Lines are still blanking sailings and now suspending entire services in a continued effort to rebalance freight supply and demand on all Asia/US lanes. We expect these capacity reduction efforts to continue for the foreseeable future, as long as import demand remains relatively slow. The Lunar New Year holiday begins January 22, and so far there are few signs of the typical shipping rush ahead of Asia holiday closings.
Volumes and rates on Transatlantic trades as well as US export lanes remain relatively stable for now.
In addition to USWC labor contract talks, US rail labor contract negotiations are ongoing. The current cooling-off period ends December 8, and there is concern a strike may materialize if a deal is not struck by then. Any work slowdown or strike on the rail would have wide-reaching impacts across the supply chain. More details can be found here: Top unions split on tentative agreement with US rails
We will keep you posted with developments as they occur.
Wishing you all a very Happy Thanksgiving!
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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, Director, Pricing & Procurement, CVI
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