Transpacific Westbound Market Update
To Our Valued Customers:
Market Conditions – Space conditions for US exports on the Transpacific trade from the US West Coast remain favorable. However, vessel space from US East Coast ports is booked out approximately 2 weeks and incurring roll-over cargo. As we move into December and the 1st quarter of 2018, we expect short term challenges with vessels space due to Chinese New Year.
Chinese New Year: Chinese New Year is February 16, 2018. The New Year’s celebration lasts for 1 week; however, factories are generally closed for 2 weeks. Cargo will not be cleared or delivered during this time. Please consult with your Laufer Export specialist to find sailing schedules that meet your needs. The standard equipment free time in China is 14 calendar days.
Ocean Carrier Free Time: Hapag has reduced free time for China shipments to 10 days for the pre CNY peak shipping season. This is effective on shipments returned to Hapag between Dec 15th and Jan. 15th. Ocean carriers have not announced the free time policy for CNY yet.
General Rate Increase: The Asia Export GRI can keeps getting kicked down the road. What started on October 1st has now been postponed monthly and announced for January 1st. This GRI has been filed in the below varying amounts.
20’- $ 50 - $ 80
40’ - $ 100- $ 150
Carriers were successful in taking a small increase off of the USEC to the Middle East and on a few specific trade lanes where origin equipment was at a deficit.
Electronic Logging Devices (ELDs): The Electronic Logging Device mandate takes effect on December 18th. Truck drivers will be required to have ELD's fitted to all commercial vehicles and will no longer be allowed to maintain paper/manual logs of their hours; this change is not cutting driving hours rather enforcing the regulations already in place. The general consensus in the drayage community is that rates, especially on longer hauls, will increase and capacity tighten. We expect the new ELD mandate to cause some minimal disruption to supply chains.
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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