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Transpacific

As advised last week, services from Asia to the US are extremely overbooked. Carriers have successfully maintained rates over the last few months by cutting capacity, and the result is a severe imbalance in supply and demand; rollovers are occurring frequently on services to USWC and USEC. Carriers are reinstating sailings but the tight space situation will likely continue through at least June/July. Spot rates are expected to increase June 1. Some carriers are asking for premium surcharges to guarantee space – essentially early peak season charges in exchange for priority loading on vessels.

It is imperative that all transpacific eastbound shippers place bookings at least 3-4 weeks prior to cargo ready date. Services are booking up that early. Even for contract business, advance booking is required.

Air freight space remains tight, though capacity is increasing across the industry as passenger services come back online. Rates out of China are still high and dependent on the type of service.

India’s lockdown has been extended once again, now through May 31st. Some sectors may be allowed to partially reopen sooner.

Transatlantic

Capacity remains tight in and out of Europe. Blank sailings are causing major space issues in both directions. Scarce equipment in Europe is also still a challenge. Air freight space remains tight as well, though the gradual increase of global capacity will improve the situation. Early booking and forecasting is critical on transatlantic lanes as well as TP.

Domestic

Tight equipment supply and blank sailings on transpacific and transatlantic trades are causing US export rates to creep upward. We’re seeing overbooked vessels on nearly every lane. Early booking is crucial.

Air freight rates out of the US are fluid and on spot basis only. Schedules and capacity are changing frequently.

Global

With many countries loosening pandemic-fueled restrictions, ease of shipping is improving slowly. We are monitoring the situation in regions where the virus is still on the rise (Latin America, for example). We expect to see impacts from the recent global disruption for the remainder of the year, and possibly into next year.

 

Rachel Shames

Director, Pricing and Procurement

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