Rates from Asia to US West Coast ports have continued to adjust downward as space opens up from the extra capacity inserted into the market over the last month. There is a wide range of rates on this lane, with carriers promoting special levels for select sailings. Rates are still relatively high, ranging from the $6000s into the high $7000s+ per FEU.
Space from Asia to the US East and Gulf Coasts remains tight; rates have adjusted slightly but remain above $10,000 per FEU.
On India trades, carriers have been moving capacity to stronger lanes and reducing sailings to and from the US. Space is very tight, and rates out of India have climbed in recent weeks.
Concerns persist over stalled negotiations on the labor contract covering the US East and Gulf Coast ports. The current contract expires September 30, and the International Longshoreman’s Association (ILA) has pledged not to work without a finalized contract in place. Last week, ILA President Daggett stated that a labor strike is “becoming more likely.”
Overall, US import volumes remain high; they recently hit the highest levels in nearly two years. The National Retail Federation upgraded its forecast yet again in July and indicates they are still seeing strong demand. Buying habits and goods purchased have changed somewhat, but demand is showing resilience. However, with rates softening, it’s possible we are past the peak of the current surge, especially if increased demand has been driven by frontloading to get ahead of new tariffs and potential port labor issues.
It is still necessary to book early, at least 4 weeks prior to sailing, especially if you are booking under a fixed rate framework. The rate spread in the market between fixed and FAK remains large, and fixed space is still severely limited.
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