Ocean carriers have a problem on their hands. Aside from a lackluster Asia to U.S. shipping market, carriers are about to be inundated with brand new containerships. This couldn’t happen at a worse time for the carriers. They are already being forced to slash freight rates to unprofitable levels in an effort to fill container vessels already deployed. Adding additional capacity…CONTINUE READING
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Asia to U.S. Contract Negotiations Begin
Shippers have begun the annual ritual better known as contract negotiations. There is one major difference in this year’s negotiations compared to the last two years. Shippers head into the negotiations with the leverage. The current Asia to U.S. market is weak. That point cannot be disputed. Spot rates have plummeted and plenty of space is available to shippers. Once the…CONTINUE READING
Take Control of Your Supply Chain Challenges
Supply chain challenges are expected to continue in 2023. Are you aware that IHA provides its members a tool to address these challenges? The tool, made available only to IHA members, is your industry shippers association otherwise known as International Housewares Shippers Association (IHSA). Carriers always recognize leverage. Shippers with the most leverage consistently…CONTINUE READING
Will the Carriers Avoid a Rate War?
Container freight rates from Asia to the U.S. continue to decline. Rates have fallen to levels that seemed unimaginable only a year ago. The average spot rate to move a container from China to Los Angeles in December 2021 was $15,000. The cost to move that same container today is $1,500. The carriers, who declared that rate wars were a thing of the past, seem powerless to stop…CONTINUE READING
U.S. Imports from Asia Continue to Nosedive
U.S. imports from Asia have plummeted over the last few months. The month of September alone declined 10.4% versus August. Forecasters do not see any improvement for imports when October imports are finalized. Industry experts are now projecting that imports will continue to decline through the end of the year. It’s hard to comprehend how quickly the Asia-to-U.S. market has…CONTINUE READING
Ocean Rates Reflecting Weak Demand
The fourth quarter of 2022 is shaping up to be a challenging time for both carriers and shippers. This same time last year, shippers were faced with record high rate levels and lack of space on containerships. Carriers were flush with cash and able to choose the cargo they wanted to manage. As we enter Q4 2022, the Asia to U.S. market has taken a 180-degree turn. Container…CONTINUE READING
Ocean Rates are Officially on the Decline
There is no longer denying that the Asia to U.S. market is showing signs of weakness. Major retailers have distribution centers that are already at capacity, so purchase orders are being delayed or cancelled altogether. Usually during the months of September and October, shippers are forced to pay peak season surcharges to secure space on vessels. That will not be the case…CONTINUE READING
Are $20,000 Spot Rates a Thing of the Past?
The worsening state of the global economy is starting to negatively impact the record high ocean spot rates that have overwhelmed shippers the last two years. Everyone involved in international shipping, including the ocean carriers, knew that the record high spot rates were not sustainable over a long period of time. The softening demand by consumers has some carriers…CONTINUE READING
Container Volume is Starting to Soften
The global economy is slowing down. Consumer confidence is also starting to wane. As a result, the containership industry is starting to see a softening in global container volume. U.S. importers are watching closely to see how this global softening impacts rates and capacity in the Asia-to-U.S. market. The initial impact is clear. Spot rates from Asia to the U.S. are on the…CONTINUE READING
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