Freight markets remain soft, with capacity outpacing demand on most key lanes. On Asia-US trades, ocean freight rates are roughly back to springtime, pre-tariff reprieve levels. Any market rebound at this point depends on tariff policy changes and US importer inventory/replenishing needs.
European port congestion continues. Freight rates are relatively stable, though delays persist. There is concern that congestion may worsen with Asia-Europe peak season arrivals ramping up.
Carriers continue to blank sailings and position assets to keep capacity as well-balanced with demand as possible. Importantly, this means that if demand increases suddenly, sufficient capacity will not be in place to accommodate it; there will be a lag before capacity increases to match demand. This is one reason why early booking is critical – at least 3-4 weeks in advance (4 weeks minimum for tighter markets). We highly recommend that importers use this standard booking window as a general rule, whether the market is weak or strong, to best prepare for market swings. Volatility remains a major challenge, a trend we expect to continue.
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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.