Transpacific Westbound Market Update
September 26, 2017
To Our Valued Customers:
Market Conditions – Space conditions for US exports on the Transpacific trade remain favorable. Vessel space from both US West Coast and US East Coast ports are available with little roll-over cargo. As we move into the 4th quarter exports will increase and this situation may change. Currently container and chassis availability is a larger concern than vessel space.
General Rate Increase: Majority of ocean carriers have postponed the filed General Rate Increase (GRI) from October 1, 2017 to November 1st, 2017. The GRI has been filed in the below varying amounts.
20’- $ 50 - $ 80
40’ - $ 100- $ 150
Golden Week Blank Sailings: The Golden Week holiday begins next week in China. As is typical during Golden Week, the ocean carriers will skip rotations and have blank sailings. These will impact US Exports week 43 for West Coast sailings and week 45 for East Coast sailings. Please book in advance so that we can review optimal routings.
Hurricane Updates: The ports in Houston, Miami and Jacksonville are slowly returning to service after the effects of Hurricanes Harvey and Irma. We are still seeing some rolling of cargo from inland locations. We expect service to return to normal in the next week or two.
CSX Rail Service: After several weeks of rolling cargo from Memphis and Nashville, the CSX rail service integrity is starting to return to normal.
Ships Getting Bigger: In the last week both CMA CGM and MSC have placed orders for new 22,000 TEU vessels. These vessels are scheduled for delivery at the end of 2019.
Prince Rupert Diversions: Maersk and Cosco have begun diverting cargo from the Canadian port of Prince Rupert to the port of Vancouver. Both carriers are diverting cargo due to congestion in PRR due to construction at the terminal and to the connections to the CN Rail.
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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