Transpacific Eastbound Market Update
To Our Valued Customers:
Market Conditions – What’s Happening with Capacity and Demand? We are in a short-term period of uncertainty regarding capacity. While we have experienced numerous extra loaders in the TP trade over the last two weeks, the market clearly has lost some capacity as a result of Hanjin’s bankruptcy and the immediate loss of that market share. Space has been and is expected to remain tight through much of October. In addition, as we enter the Chinese Golden Week to celebrate China’s National Day Holiday, many carriers have announced their intent to skip rotations during weeks 40, 41 and 42 that are significant.
Which carriers have announced rotations to be skipped?
October 1, 2016 General Rate Increase: Carriers have postponed this GRI to October 15, 2016 as follows:
US WC, EC and all IPI Destinations: $800/20’ $1000/40’ $1125/HQ $1270/45’
While we expect some small increase in spot market rate levels on October 15, we expect it to be far less than the $1000/40’ filed by carriers. We will have far more clarity to the market conditions once China reopens following their National Day Holiday.
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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