To Our Valued Customers:  

 

Market Conditions:   Space conditions for US exports on the Transpacific trade from the West Coast have improved and vessel space is available for near term bookings.   East Coast space continues to be a challenge and we are seeing several carriers with July sailings as their first available.   

 

Blank Sailings:   Due to the impact of Covid-19 pandemic, ocean carriers are continuing with their aggressive capacity reductions as they attempt to balance supply and demand.   THE Alliance has canceled sailings for July, August, and September.    Ocean Alliance and 2M have also canceled sailings in July.

 

General Rate Increase:  The announced export general rate increases were not able hold in June due to a lack of export demand.    Ocean carriers will try for increases again in July.

 

Container Availability:   Due to an increase in agricultural exports, we are beginning to see a shortage of equipment in some inland locations, specifically 40’ equipment in Chicago.     We foresee these shortages to be an ongoing issue until the recent pick up of import shipments are able to resupply containers for US exporters.  

 

Booking Cancelations and Container No-Shows:  Hamburg Sud stated at the virtual AgTC Annual Meeting in May that they are experiencing exporter cancellations of greater than 50%.   Please assist us in managing booking cancelations, if you anticipate that your cargo will not materialize, we ask that you please update your booking or cancel the affected containers.  

 

Laufer Kansas City Returning to the Office:   Our team of 90 employees in Kansas City is beginning to return to the office.   In May we began splitting the team in half with one team working in our office one week and the other team works in the office the next week.   Our current plan is tohave the entire team back by July 1st.   Thank you for being patient and understanding during this difficult time.    

    

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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