To Our Valued Customers:
Market Conditions: One in five voyages from Asia to the US have been canceled in May and June causing vessel space and equipment at some inland locations for US exporters to become scarce. It is the new normal for our booking team to reach out to 3 or 4 ocean carriers to secure one booking thus delaying our booking response time. We expect these challenges to continue for the next few months.
Blank Sailings: One of our partner ocean carriers has advised that 12% of their fleet is idle due to lack of demand and low sulfur changeover and another 25-30% is idle due to voided sailings for a total of 37-42% of their fleet out of commission. This is simply not sustainable. This carrier expects blank sailings to continue through the end of the year.
General Rate Increase: Ocean carriers were not able to hold the Asia May GRI’s and the majority of increases have been postponed until June 1st. GRI’s to India Sub-Continent were able to stick. Yang Ming was the first to announce a July 1st increase of $50 a 20’ and $100 a 40’ to China, Southeast Asia and the Middle-East today.
US / China Phase One Trade Deal: Governments officials of the US and China met on Thursday to confirm their commitments to the phase one trade deal despite the economic disruption caused by the COVID-19 pandemic, said US Trade Representative Robert Lighthizer.
US / United Kingdom begin Trade Discussions: The US and the UK have begun discussions for a formal trade agreement. The UK stopped being a member of the European Union on January 21st, 2020; however, they will continue operating under EU trade rules until December 31st, 2020.
Malaysia: Malaysia has extended its Movement Control Order through June 9th due to COVID-19.
India: Ocean carriers are offering additional destination free time to assist Indian consignees who were unable to pick up containers due to COVID-19 lockdown.
Bangladesh: Vessels sailing from China must wait at least 16 days starting from sailing date from China to berth at Chittagong Port.
Singapore: Singapore COVID-19 lockdown extended to June 1st with the exception of those providing essential services.
Thailand: Lockdown in Thailand has been extended till May 31st.
Philippines: The lockdown for COVID-19 has been extended to May 15th in the capital Manila. Manila is still experiencing a slowdown in customs clearance and back log of containers.
Vietnam: Vietnam has begun easing their nationwide lockdown.
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.