To Our Valued Customers:

 

Blank Sailings Trigger Peak Season Surcharges - The market anticipated improving capacity conditions as we move through June as extra loader vessels and fewer blank sailings were going to ease the market shortage. Unexpectedly THE Alliance announced another substantial round of blank sailings for the months of July and August (service details provided below). OCEAN & 2M have also announced new July blank sailings. The additional blank sailings will likely prolong capacity shortages through at least early August.

 

Market Rate Levels Continue to Increase: With the significant number of blank sailings in April and May, space continues to be tight, especially to LA/LGB. Many carriers are rolling containers as backlogs in places like Pusan and Shanghai increase. We are even experiencing rolls of two weeks especially when the week containers are rolled to has a blanked sailing. Due to the tightness in space, carriers have been successful in implementing General Rate Increases to market-rate levels since May 1st, 2020.

 

Ocean Carriers Peak Season Announcements - Several carriers this week announced peak season surcharges on the Transpacific with effective dates as early as June 15th. The average proposed peak season surcharge is $600/40’. Make no mistake, the peak season surcharge is a by-product of the blank sailings and not because of seasonal freight volume increases that occur in late summer due to year-end holiday season sales. The recent announcement of July blank sailings is a clear indicator that overall market volumes are not expected to rebound in the short-term, so capacity cuts are being used to ensure capacity remains tight.

 

East Coast Capacity Expected to Tighten in July - Blank sailings in late June on the East Coast will also impact service reliability and some carriers have announced weight restrictions for cargo via the Panama Canal effective July 1st. All three ocean carrier alliances have a blank sailing during the last week of June (service details provided below) with four blank sailings announced in the market.

 

July Blank Sailings - Below are the announced blank sailings for the month of July and we will continue to provide the latest updates as we are expecting to hear additional reductions in sailings from OCEAN & 2M in the coming weeks.

 

Transpacific – West Coast

Week of June 28th

THE Alliance - Colombo, Port Kelang, Singapore, Cai Mep, Haiphong // Los Angeles, Oakland THE Alliance - Shanghai, Ningbo // Los Angeles
THE Alliance - Hong Kong, Yantian, Shanghai, Busan // Vancouver, Seattle
THE Alliance - Qingdao, Ningbo, Shanghai, Busan // Prince Rupert, Tacoma, Vancouver OCEAN Alliance – Hong Kong, Yantian, Ningbo, Shanghai // Prince Rupert, Vancouver

Week of July 5th

THE Alliance - Xiamen, Yantian, Kaohsiung, Keelung // Los Angeles, Oakland
THE Alliance - Shanghai, Ningbo // Los Angeles
OCEAN Alliance - Fuqing, Nansha, Hong Kong, Yantian, Xiamen, Shanghai // Los Angeles, Oakland

Week of July 12th

THE Alliance - Colombo, Port Kelang, Singapore, Cai Mep, Haiphong // Los Angeles, Oakland THE Alliance - Shanghai, Ningbo // Los Angeles
THE Alliance - Hong Kong, Yantian, Shanghai, Busan // Vancouver, Seattle
THE Alliance - Qingdao, Ningbo, Shanghai, Busan // Prince Rupert, Tacoma, Vancouver

Week of July 19th

THE Alliance - Xiamen, Yantian, Kaohsiung, Keelung // Los Angeles, Oakland THE Alliance - Shanghai, Ningbo // Los Angeles

Week of July 26th

THE Alliance - Colombo, Port Kelang, Singapore, Cai Mep, Haiphong // Los Angeles, Oakland THE Alliance - Shanghai, Ningbo // Los Angeles
THE Alliance - Hong Kong, Yantian, Shanghai, Busan // Vancouver, Seattle
THE Alliance - Qingdao, Ningbo, Shanghai, Busan // Prince Rupert, Tacoma, Vancouver

THE Alliance: Ocean Alliance: 2M: Yangming, ONE, Hapag Lloyd, HMM COSCO, OOCL, CMA, Evergreen, APL Maersk, MSC

 

Please contact your local sales representative to further discuss the current market situation and the potential peak season surcharge. Our top priority as your logistics partner is to keep your supply chain moving, we will do our utmost to continue providing the best service options available.

 

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