The ocean freight market from Asia to the US has softened slightly since the June 1 rate increase. Freight rates remain on the high side, but there are some carriers offering slightly more competitive levels on select sailings. However, most carriers still report high utilization of vessel capacity at this time.
The outlook is very unclear; the initial surge of orders after the mid-May tariff reprieve seems to have passed. Importers are likely hesitant to ramp up production again while the tariff landscape remains so uncertain. Extended uncertainty also means the ocean carriers do not have reliable forecasts to utilize for efficient capacity deployment. Industry-wide, we are all awaiting news from the latest round of US-China trade negotiations as well as the many deals in the works with other major trading partners.
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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.