Rates continue to rise across trade lanes. The market is looking at an early peak season on Transpacific Eastbound trades. Carriers are announcing and implementing peak season surcharges, some effective as early as May 15th, and some for June. Amounts vary and will ultimately settle based on market strength. Space is currently very tight, allowing spot rate increases to hold. Vessels are booked up well in advance, and carriers are prioritizing higher-rate spot cargoes over fixed/long-term rate bookings.
Space is tight on other major trades as well, including Transatlantic Westbound. European ports are seeing more congestion, especially Rotterdam and Antwerp. Low water levels on the Rhine are a contributing factor.
Fuel prices remain high, with continuous impacts on all modes. Ocean carriers are taking different approaches to bunker rates. Some have eliminated separate emergency bunker charges in favor of monthly adjustments on standard bunker. We are seeing increases for June, and more are expected for Q3.
Forecasting and early booking are critical. We recommend a minimum of 4-6 weeks’ advance booking for fixed/long-term contract space, as vessels are booking up as soon as the sailings open. Rates may continue to rise if the current space crunch persists.
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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.