On Transpacific services, a rate increase went into effect on most sailings as of April 1. Spot rates are currently in the mid/high $2000s per FEU to West Coast ports and mid/high $3000s per FEU to East Coast ports. There are a few specific sailings with rates at lower levels, and some carriers are open to negotiating special, slightly lower rates for certain vessels. In general, ocean carriers so far appear to have found success raising the market by blanking a large number of sailings for April and creating a tighter capacity environment. The question now is how long this will last; if carriers can sustain the higher spot rate levels, they will be able to achieve the higher contract rate levels that shippers have been reluctant to sign. If spot rates fall and space becomes more widely available, some shippers may continue to hold off on signing new contracts.
Many companies have been awaiting the April 2 tariff announcement to make contracting decisions.
With May 1 drawing near, most importers need to finalize deals soon to have contracts and allocations in place for May bookings. The coming days and weeks will be telling as we watch the supply/demand dynamics unfold during this critical contracting period.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.