While we have shared conversations for months about the state of the industry and the almost certain spike in freight rates and equipment shortages, the tide has turned very rapidly.   When the first ships were attacked entering the Red Sea at the end of last year, you will recall shipping line futures soared and that was the first indication of things to come.  They are here, and they appeared abruptly.

Inside of just a week or so, capacity has tightened dramatically.  Our team will likely be reaching out to you to suggest alternatives when necessary.   A few things are to be expected:

• Delayed bookings as carriers have equipment shortages, which have resulted in part from port congestion in the Mediterranean and Asia and additional sailing time for transit around Africa.  Please urge your suppliers to book early on your Import Bookings and please book your export loads as early as possible!
• Increased freight rates: the JOC (Journal of Commerce) reported rates at 2022 levels, perhaps a foreshadowing, we have not seen this just yet.
• Carriers’ preference for bookings only to the ports and less availability for inland (Chicago, Cleveland, etc.), potentially necessitating transloading at the ports.

How long will this last…

While no one has this answer, estimates are October or December of 2024.  Recently, the largest shipping line updated their financial forecast upwards to the tune of several billion…  that makes us lean more towards December.

We have been through this before, we will again do all that we can to keep you protected.  Please work with our team members when they make suggestions to keep your consignments moving.  Reach out to me or any of our team with questions.

If you would like more information, our team members can supply you with a variety of trade and mainstream media publications.

June 6, 2024