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Transpacific

Rates are stable this week, and vessel space is still very tight. Carriers are planning to implement
another rate increase August 1 in the amount of $300-500 per container. We may see some adjustment
to those amounts the first week of the month, as usual. If demand remains high, however, carriers
should be able to maintain an increase.

Carriers are still announcing reinstated sailings, especially on US West Coast services. As they continue
to add capacity back into the market, there is likely to be at least some negative pressure on rates.
Carriers’ discipline in this area will dictate how much rate levels fluctuate in the coming weeks.
Forecasting is still difficult given the economic uncertainties in the US. If demand remains steady, the
annual peak season holiday volumes will keep rates on the higher side.

On the air cargo front, the market out of Asia has been slowly increasing over the last 1-2 weeks. A
recent uptick in COVID-19 cases in Hong Kong caused disruption to typical cargo flow and pushed HKG
air rates to higher levels. Steady volumes of PPE and limited air capacity due to low passenger travel are
having the same effect on freight moving out of China. Looking ahead to the fall, we expect the usual
rush of electronics and other time-sensitive holiday products to push demand beyond the current supply
limits. Major tech brands such as Apple and Samsung will be booking available space at a premium.
Capacity open to the rest of the market will be sold at much higher levels than in previous years.
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.

Transatlantic

The EU has reopened for business and visitors, and space is a challenge across the board. Blank sailings
are causing major space issues in both directions; THE Alliance announced a new round of blank sailings
today. Scarce equipment across Europe is an issue, and limited passenger air services are still keeping
the air cargo market very tight. Potential new US tariffs on some goods from Europe have importers
rushing to get cargo out before the August increase, putting further pressure on space and rates across
all modes.

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.

We remind you of our new SOUTHBOUND SELECT LCL service from Bremen to Charlotte!

 

**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, CLICK HERE to visit our Southbound Select LCL webpage.

 

Domestic

In the US, 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 around the country as well, utilizing road
capacity and putting upward pressure on rates.

Blank sailings on transpacific and transatlantic ocean trades are keeping export space very tight. We’re
seeing overbooked vessels on nearly every lane. Similarly, reduced services in the global air freight
market are helping maintain higher air rates. Early booking is crucial on exports as well as import lanes.

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

 

Global
Many countries across the globe have loosened pandemic-fueled restrictions, while others are
implementing a second round of countermeasures. We expect to be dealing with disruptions linked to
the pandemic for some time. Broader economic impacts have not been fully realized in most of the US
and our major trading partners. Carriers are watching bookings and load factors closely, and they will
align their capacity with the market on short notice. We will continue to monitor the situation across all
fronts.

Please keep CVI advised of your shipping needs as early as possible.

 

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 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!

 

Rachel Shames,

Director, Pricing & Procurement

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