IHSA

Container Spot Rates Spike in June

Shippers are fed up with the carriers so-called capacity management strategy. The strategy of canceled sailings has resulted in thousands of US-bound containers being delayed in Asia. The lack of space available on ships has quickly driven spot rates to a 52-week high. The spot rates from Asia to US West Coast ports increased over $1000 in the last three weeks topping out…

Container Space Tightens from Asia to US

Due to lack of demand, carriers cancelled 20% of Asia to US sailings for the month of May. They have already announced plans to cancel 20% of their Asia to US sailings for the month of June. The containers already booked for June sailings reinforces that demand is starting to rebound. The uptick in container volume is a positive sign for all stakeholders but also presents…

Sourcing Shift from China Continues

The prolonged trade war between the US and China plus the emergence of COVID-19 have changed how importers should evaluate risk when finalizing their sourcing options. Importers that rely 100% on China for sourcing are more at risk than importers that have multiple sourcing options. Many US importers have already learned a lesson from relying too heavily on China for their…

IHSA Ocean Contract Negotiations

IHSA and our carrier partners are fully engaged in contract negotiations that determine annual shipping rates for cargo shipped from Asia to the US. The new shipping rates will go into effect on May 1, 2020 and expire on April 30, 2021. When negotiations began, both parties were prepared to discuss the usual topics of rates, fuel, detention free time and space allocation.…

Carriers Monitoring the Coronavirus

The carriers are monitoring the impact the coronavirus could have on containers moving from China to the US. They have refrained from cancelling sailings so far, but the situation is very fluid. To help contain the coronavirus, the Chinese government extended the Chinese New Year holiday for most of the country by 3 days. Factories located in areas hardest hit by the…

Scrubbers Could Provide Significant Cost Savings

Carriers that took the risk to install scrubber installations on their ships will likely have a competitive advantage in the containership industry. Effective January 1, 2020, vessels will be required to produce sulfur emission levels less than 0.5%. Scrubber installations allow carriers to buy the less expensive higher sulfur fuel. In principle, a scrubber cleans the…

Carriers Expected to Fabricate Strong Peak Season

Analysts are now predicting that the peak shipping period from Asia to the US will be mild. This prediction is in stark contrast to last year’s peak when available space on ships was tough to secure. Many shippers were forced to pay hefty rate premiums to move cargo during their preferred shipping windows. Conventional wisdom would suggest that the prediction of a mild peak…

IHSA to Introduce “Core Carrier” Program

The carrier landscape has changed dramatically over the last five years. Carrier consolidation has been a game changer. With fewer entities, the carriers now have a much greater ability to manage capacity in their favor. We believe the carriers will continue to manage capacity for the foreseeable future. To help combat this serious issue, IHSA will be nominating four carriers…

Contract Negotiations Bring Many Questions for Shippers

The 2018 peak season in the Eastbound Transpacific market has thankfully come to an end. Carrier capacity constraints and an unprecedented increase in volume caused rates to skyrocket and created a space crisis that crippled US supply chains. Shippers are hoping that 2019 will offer some stability leading up to the 2019-20 ocean contract negotiations. Unfortunately, the one…