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Carriers are planning to implement rate increases on Transpacific Eastbound lanes as of December 15. Current indications show attempts to gain around $400-600 per FEU on most routings from Asia to the US.

We are seeing more schedule changes and service irregularities due to blank sailings and Panama Canal restrictions. Sailings that are typically direct calls are often transshipping en route, and rollovers at origin or transshipment point are occurring more frequently. Sailings that are avoiding the Panama Canal in favor of transits via the Suez Canal and Cape of Good Hope are effectively reducing the overall capacity in the market, since transit times are longer on the alternate routes. Services still utilizing the Panama Canal will be impacted further in the coming months, as low-water conditions worsen and large ships face more restrictions at the canal.

Unfortunately, ocean service quality is expected to deteriorate as long as carriers continue to rebalance supply and push rates to more compensatory levels. The Panama Canal restrictions are exacerbating the impacts of the capacity control efforts, and reliability is suffering as a result.

Shippers moving cargo from Asia to the US should expect continued delays while these challenges persist. Shipments to the East Coast and Gulf Coast will be impacted most, although routings to the West Coast are also incurring delays when cargo transships. Building in additional lead time of at least 1-2 weeks is highly recommended. For urgent bookings, consider utilizing gateways on the US West Coast for the fastest ocean transits, or air freight for the most critical shipments. With Lunar New Year beginning February 10, be sure to plan ahead for any time-sensitive needs in the coming months.

 

 

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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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