Transpacific

Rates are still climbing as demand for space remains strong and capacity is limited by blank sailings. We
are seeing rollovers and booking delays from most Asia origins. Vessels are booked 3-4 weeks in advance
and in some cases, services are already completely booked through July. Carriers are keeping the blank
sailings scheduled for Q3 for now, though we may see extra loaders enter the market to accommodate
some of the surplus demand. Some carriers are securing premium surcharges for priority loading. Others
have announced peak season surcharges beginning in July.

There is no clear indication as to whether or not strong demand will continue into the next quarter.
Analysts are unsure if this is a temporary increase to replenish inventory, or if it’s a sign of gradual
improvement as world economies start to reopen from pandemic shutdowns. Regardless, we expect
carriers to continue to manipulate capacity as they anticipate demand and move to maintain higher rate
levels.

Early booking and forecasting are critical – forecasts at 6-8 weeks out and bookings at 3-4 weeks prior
to cargo ready date are highly recommended. We urge you to proactively communicate any specific
space needs to your dedicated CVI customer service or sales representative.

We have gotten some positive feedback on the recently launched “speed” ocean services with 12-day
transit from Yantian/Da Chan Bay to LA. With quick rail connections to major IPI points, you may find
this service attractive. Just know that it is priced at a steep premium! Again, please reach out to your
dedicated CVI customer service or sales representative for more information.

Air freight space out of Asia is stabilizing as demand for PPE slows and capacity increases. Rates out of
China are starting to stabilize as well, varying by service/lane.

Transatlantic
Capacity remains tight in and out of Europe. Blank sailings are causing significant space issues in both
directions. Scarce equipment in Europe continues to present a challenge. Air freight space remains tight
as well, though the gradual increase of global capacity will improve the situation. Early booking and
forecasting are critical so we can plan appropriately for allocation and scheduling requirements.
Again, we urge you to proactively communicate any specific space needs to your dedicated CVI
customer service or sales representative.

Domestic
Tight equipment supply and blank sailings on transpacific and transatlantic trades are causing US export
rates to creep upward. We are 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. We expect to see impacts from the recent global disruption for the
remainder of the year, and possibly into next year.

 

 

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

Director, Pricing and Procurement

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