Transpacific Eastbound Market Update

September 8, 2017   


To Our Valued Customers: 


Market Conditions – Capacity constraints to worsen prior to National Day Holiday?  Space conditions in the Transpacific trade from early September through Golden Week should yield the highest demand YTD.  Tight capacity continues out of Asia to West Coast gateways with South China and Southeast Asia being especially tight.  Historically the highest ocean carrier load factors of the year are fast approaching so it’s quite possible the space constraints will worsen before improving by early November.  The wildcard is the potential for extra loaders with one alliance announcing an additional services (see below).  East Coast space constraints continue to vary amongst carriers and this will continue leading up to the National Holiday.      


Extra Loaders:  Ocean Alliance has announced two extra sailings, the first departing SHA 9/15, YTN 9/18 with ETA LGB 10/3 & PRR 10/10.  The second sailing YTN 9/24, SHA 9/26 with ETA LAX on 10/8.  We expect other carriers to also introduce extra loaders although this year there are far fewer that we have experienced in previous years at this time.


Golden Week Blank Sailings:  As is typical during the Golden Week holiday in China, carriers will skip rotations and have blank sailings.  THE Alliance PS4 service will omit Hong Kong on 10/8, PS6 service will omit Qingdao on 10/6 and the EC3 service will omit Kaohsiung on 10/6.  Ocean Alliance will have blanks on their PSW1, PSW4, PSW9 & AW7 services with details pending at this time.       


General Rate Increase:   Carriers have filed a General Rate Increase (GRI) for October 1, 2017 in the amount of $900/20’, $1000/40’, $1125/HQ and $1266/45’.  Some carriers postponed general rate increases from September 1, 2017 until September 15, 2017 with varying amounts.          


Peak Season to test US infrastructure:  The2017 peak season will be the first true test for many ports, chassis providers, dray carriers and terminal operators on their capabilities of handling the large vessels deployed on Transpacific Eastbound trade arriving at 100% of capacity.  The East Coast infrastructure specifically will be tested since it wasn’t too long ago that vessels of less than 5,000TEU was the norm.  The average Transpacific Asia-East Coast vessel today exceeds 8,000TEU with some vessels over 13,000TEU deployed in the market. 


Hurricane & Typhoon Updates:  Typhoon activity in the Pacific is taking a welcome respite after Typhoon Hato disrupted freight operations in Hong Kong and Southern China two weeks ago.  Here in US Category 5 Hurricane Irma will cause vessel delays and impact terminal operations on the East Coast & Gulf through next week.  Hurricane Jose not far behind Irma has an uncertain track however can cause additional delays later next week on the East Coast.           


Our #1 priority as always is to help maintain our customers’ competitiveness, to keep your cargo flowing as quickly and as consistently as possible, and to continue to communicate effectively along the way.  Our nimbleness, market awareness, and “Built Different” philosophy enable us to do this - as your partner. 


Thank you very much for all your support.







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