Transpacific eastbound ocean carriers continue to implement rate increases on the first and fifteenth of each month, attempting to achieve higher overall rates. This month, many carriers initially issued spot rates valid for only seven days in hopes of pushing through another increase a week into the cycle. That attempt was not particularly successful, though it’s possible carriers will try again for weekly increases in the future.
There is another increase planned for December 15; carriers appear more optimistic about this round, hoping it holds better than recent attempts. Traditionally, the market sees an uptick in demand and load factors ahead of origin factory closures for the Lunar New Year holiday, which begins on the later side this year (mid-February). However, there is a great deal of skepticism in the freight market, with many industry analysts predicting lackluster volumes through the holiday. Most importers are reporting inventory at low, conservative levels, with no plans to increase stock in the short term.
CMA CGM has announced plans to resume Red Sea routings on its Indamex service, US-India. This would be the first major US service string to return a full loop to the Suez Canal.
The freight market outlook remains relatively uncertain. As always, we encourage a routine of advance bookings. Market conditions can change very quickly.
Industry News
To keep current on the latest market and industry news, please subscribe to our client alerts, 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
VP, Pricing & Procurement
CV International, Inc.