We’ve seen some interesting movements in ocean freight rates lately. It seems like carrier capacity control has been a bit lacking since the Chinese New Year, with a 14% year-over-year increase in capacity. To get those spot rates back in line, carriers are starting to blank/void sailings, which is something we’re already observing.
And hold onto your hats, because carriers have announced spot rate increases of $1,000 to $3,000 USD per FEU (Forty-Foot Equivalent Unit) starting April 1st! On top of all that, the Red Sea crisis is still causing ripples in ocean shipping.
Inventory levels appear to be stabilizing. It looks like retailers’ sales are on the upswing, which suggests that sales growth might be keeping pace with any front-loading efforts.
Contract Negotiations: Looking Ahead
Now, let’s talk about contract negotiations. It’s looking like contract rates are going to be on the rise in 2025-26, but compared to 2024 spot rates, the increase is small. The 2024-25 period was a real test for carriers and their commitment to contract shippers, especially when it came to Minimum Quantity Commitments (MQC) at agreed rate levels. Our carrier partners really stepped up and delivered for our members.
But now, the tables are turning. 2025-26 will be a test for contract shippers. Will they stick by the carriers, and support contracts? Here at the IHSA, we want to be the shipper of choice. Our members are ready to show their support to the carriers and return the favor! This is the same mentality our members used to save millions in 2024.
Craig Akers
Executive Director
About IHSA
Don’t miss out on the significant savings available exclusively to IHA members through your shipper community, the IHSA. From May through April, members save millions on ocean freight costs.
Take advantage of this valuable resource today! Visit the International Housewares Shippers Association website or email team@shippersassociation.org to learn more and start saving.
Member onboarding status for 2025: HOLD
