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Transpacific

We see Transpacific ocean rates as holding steading. Some carriers have extended rates through July
19, while others have extended through July 31. Vessels are still overbooked, and many shippers are
rushing to get more freight out by the end of July to bypass the next GRI. Carriers have reinstated more
sailings to USWC and USEC, but space is still very difficult to secure. Premium surcharges and peak
season surcharges are still required by most carriers to get space on short notice.
With surging COVID-19 cases in the US and some key high-population states taking extra safety
precautions, we may be headed toward another volume decline. If consumers are less active in the
coming weeks, we may see importers cut orders and demand less ocean space. This scenario is far from
guaranteed and we will continue to monitor as usual.

Carriers are watching bookings closely to gauge whether additional blank sailing are necessary for
August and September. The failure of the mid-July GRI is a sign that rates are somewhat maxing out
relative to current demand. This may indicate a slowdown is imminent.

It is imperative that all transpacific eastbound shippers place bookings at least one month prior to cargo
ready date. For all business, contract/long term and floating/short term, advance booking is required.
We urge you to proactively communicate any specific space needs to your dedicated CVI customer
service or sales representative.

Air freight space and rates out of China are closer to normal levels at this time, varying by service/lane.
Hong Kong has seen a recent surge in COVID-19 cases, and air freight rates out of Hong Kong spiked this
week as a result of countermeasures.

Transatlantic
The EU is reopening to visitors but not yet permitting travelers from the US. The result will be continued
tight air capacity as services remain severely limited. Ocean capacity remains tight in and out of Europe
as well. Blank sailings are causing significant space issues in both directions, and scarce equipment in
Europe continues to present a challenge. 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.
This week we celebrate the first departure of our SOUTHBOUND SELECT LCL service from Bremen to
Charlotte! Please see the below for more details on this market-changing product!

**INTRODUCING CVI’S NEW GERMANY→USA OCEAN LCL PRODUCT: SOUTHBOUND SELECT LCL**
A cost-effective alternative to airfreight with 10-day PORT TO PORT transit
(Bremerhaven-Charleston) and 17-day CFS TO CFS transit (Bremen-Charlotte, NC).
For more details please visit us at: https://cvinternational.com/southbound-select-lcl/

Domestic
Truck capacity has tightened over the last several weeks, corresponding with the late spring volume
increase. There is a still a good deal of PPE moving into and around the country as well, taking up truck
capacity and putting upward pressure on rates.

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.

US Customs/Compliance
Between today and August 7, 2020 there are 15 more exclusion sets scheduled to expire! Let our team
of compliance experts guide you through the maze and help you secure the refunds to which you are
entitled.

To keep current on the latest market and industry news, please subscribe to our client alerts page at
https://cvinternational.com/resources/industry-news/ or follow us on LinkedIn

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!

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