Industry News

Freight Rate Update: August 2019

Ronald Vincent | M.E. Dey & Co.

Here is the latest update on current freight rates for both Import and Export cargo. M.E. Dey provides the best possible rates available to our clients by reviewing various carrier options. We’ll keep you advised and informed as trade updates are announced.

The implementation of the most recent China tariffs by the Trump administration has significantly affected Trans Pacific Eastbound (TPEB) rates. See more details below.

 

Trans Atlantic Westbound (import)

 

  • Space is still very tight with vessels sailing at capacity. We encourage customers to book as least 2 weeks in advance. Rates are stable at the moment, but increases may be implemented if capacity remains tight.

 

Trans Atlantic Eastbound (export)

 

  • Rates remain stable. Equipment availability has improved, but some origins/carriers continue to have equipment shortages.
  • We encourage customers to book at least a week in advance.

 

Trans Pacific Westbound (export)

 

  • Rates remain stable. Equipment availability has improved, but some origins/carriers continue to have equipment shortages.
  • With some carriers we are having to book 2 weeks in advance.

 

Trans Pacific Eastbound (import)

 

  • Through July spot rates remained stable with small increases on some lanes and decreases on other lanes.
  • As August approached, carrier announce a significant GRI to be implemented August 1st. The GRI amounts were announced at $ 700 – $ 900 per container.
  • In the past 5 days this GRI has been cancelled or postponed to at least August 15th and with some carriers until August 31st.
  • Industry articles in the JOC and other publications over the past 2 weeks paint two different pictures.
  • Some ‘experts’ state that the tariffs on Chinese goods are not affecting shipment volumes and that there will be a solid peak season. Other analysts are predicting a very short peak season due to decreased demand.
  • The proof to me is the cancellation of the August 1st PSS by the steamship lines.  If volume was steady or increasing they would have tried to push through the PSS. Cancelling it indicates that they don’t have enough advanced bookings for August to support higher rate levels.
  • We continue to monitor the contract and spot rates on a daily basis and book to achieve the best possible pricing and service for our customers.

 

M.E. Dey and Co. monitors the market daily to find competitive rates that pair well with exceptional transportation services. We provide fixed rate contracts in addition to standard market rates. Contact us to talk with a representative or request a quote to get started.

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