Is Peak a “Market Bottom” in Disguise?

Americas

USWC

The West Coast may again be the “best” coast after settling the ILWU contract uncertainty, Panama Canal drought issues, and rate deterioration.

Panama Canal

We are consistently seeing a noticeable increase in transit times  (+ 5-6 days) for vessels passing through the Panama Canal due to weight restrictions.

Sea Freight

Europe → North America

Blank sailing and vessel sliding continue to counter market pricing erosion.

Rates sliding through the end of September and disappearing gains from August triggered carriers of all three alliances to respond with a heavy hand of blank sailings, cutting capacity by 25-50%.

Asia

The launch of iPhone15 and other consumer electronics as well as heavy e-commerce business from SE Asian Countries as well as HK and China, has triggered rate increases across the board.

Need Help Navigating the Current Freight Market? Contact our Procurement Team

In Other News…

• From 2018-2022 Exports to US from India increased by 44% while China dropped 10% – The International According to BCG’s calculations, the average cost of Indian-made goods imported into the US is 15% lower compared to goods manufactured in the US. In contrast to, Chinese goods offer only 4% cost advantage.
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• Aging Cold Storage Capacity at 2.3 million square feet – Cold storage warehousing in the US can’t keep up with growing demand for capacity in the sector, with more than 70% of existing assets too old to be energy efficient and speculative builds deemed too risky given they’re triple the cost of dry warehouses and highly specific to each tenant’s needs.
  – Read More
• Mexico is attractive, but not without its own special trials and tribulations – Mexican officials are trying to stem the flow of migrants headed for the US, which has forced the suspension of some rail operations and truck processing at major border crossings.
  – Read More

Questions? All you have to do is contact us.

#makingtheworldsmaller