The ocean freight market from Asia to the US has continued to soften, especially on routes to USWC ports. Spot rates to WC have decreased significantly from the June 1 high, and carriers have mitigated WC peak season surcharges as well. The market to USEC/GC ports is stronger by comparison. Carriers did not inject the same levels of additional capacity to USEC/GC as they did to USWC after the mid-May tariff reprieve. Spot rates to EC/GC have softened since June 1, but the levels remain relatively high.
We are now seeing another rebalancing of supply – extra loaders have mostly ceased, and blank sailing announcements have returned as carriers attempt to better match supply to demand.
With July and August tariff deadlines looming, awaiting finalized trade deals, the market is very uncertain. Importers appear reluctant to commit to significant volumes and firm up forecasts for the second half of the year.
The industry is closely watching developments in the Middle East. Threats of closure of the Strait of Hormuz have been reported; if a closure materializes, cargo that ships via the major gateways in the region, including Jebel Ali and Abu Dhabi, would be impacted. At this time, any impacts to container shipping are expected to be limited.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.