Freight markets remain relatively weak, despite the latest China tariff deadline extension. Spot rates from Asia to the US have plateaued for now at low levels. Some carriers, however, are slightly optimistic about demand heading into September and have announced rate increases for September 1 totaling around $800 per FEU. Some reports indicate a potential uptick in demand ahead of China’s Golden Week holiday (early October). Whether an increase will stick remains to be seen.
USTR 301 Chinese-built vessel fees are scheduled to go into effect mid-October, and carriers are rejiggering assets to move as many Chinese-built vessels out of US trades as possible. This is causing vessel changes on some voyages; in certain cases, it means shifting larger vessels out of a service and replacing them with smaller, non-Chinese-built vessels. Since the market is weak, the impacts of these adjustments have not been widely felt.
In the coming weeks, some carriers may announce new surcharges related to the USTR 301 vessel fees; some carriers have already indicated that they do not plan to levy additional surcharges. It’s likely that market strength will determine whether the carriers can ultimately assess new fees.
As always, we remind shippers to continue to plan ahead and book in advance, even in softer markets. Demand can shift quickly, especially in these volatile times.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.