Freight rates and fuel surcharges across all transport modes and trade lanes remain elevated. Capacity on import trade lanes, including Transpacific Eastbound and Transatlantic Westbound, has been tight leading up to the May Labor Day holidays; rollover pools have built up at some China ports.
Ocean contracting season moved slowly this year while geopolitical uncertainties continued. Most deals have been finalized, while some remain pending. Bunker surcharge structure has been a major issue this year as all sides tried to account for an unstable fuel environment. Overall, contract rates from Asia to US were finalized at levels higher than anticipated at the start of contracting season, but lower than current spot rates.
Beyond freight rates and high fuel charges, the Strait of Hormuz crisis continues to force logistics adjustments. Hapag-Lloyd and MSC announced the reinstatement of service to the Upper Persian Gulf region using a combination of feeder services and over-the-road transport to avoid passage through the Strait.
Early booking on all modes is highly recommended.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.