Transpacific eastbound ocean freight rates held at higher levels after a December 15 GRI, and the January 1 increase has held on for the first week of the month. However, we’re seeing signs that rates are set to fall at least slightly this week. Carriers are injecting a good deal of capacity ahead of the Lunar New Year holiday, which begins mid-February. They will continue to push for rate increases on the first and fifteenth of each month. With capacity prevalent, it’s unlikely that a mid-January rate increase will stick. If rates taper off too much, carriers will ramp up blank sailings once again.
Most importers are still reporting low inventory levels and planning to keep stock low. Ocean freight capacity is expected to outpace demand this year as more new vessels enter the market and as more vessels return to Suez Canal routings. Carriers will continue to manage capacity closely as they try to maintain compensatory rate levels.
As always, we encourage a routine of advance bookings. Market conditions can change very quickly.
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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.