Industry News

Freight Rate Update: January 2020

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.

IMO 2020 Surcharges

We continue to see a wide range of methods that steamship line are using to apply charges they say are necessary to cover additional costs resulting from the implementation of the IMO 2020 regulations.

Overall, we are seeing increases of $ 100-$250 depending on the lane.

In many cases, carriers have moved away from a separate surcharge and are increasing the quarterly BAF.  So the surcharge amount is now part of the quarterly BAF.

 This is a link to the IMO’s website with additional information on the IMO 2020 regulation: http://www.imo.org/en/MediaCentre/HotTopics/Pages/Sulphur-2020.aspx

 

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.
  • The U.S. has implemented additional tariffs on some EU origin products. To date the additional tariffs have not impacted shipment volumes and space 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)

 

  • Steamship lines have announced 2 GRIs for January. The first one effective January 1st and the 2nd effective January 15th. Each GRI is $ 700 to $1000 per 40’ container. Yes, you are reading this correctly. This means that in some cases rates will $ 2000 more per container then they were in December. It remains to be seen if either or both of these rate increases will stick.
  • The steamship lines are counting on a surge in bookings leading up to Chinese New Year which starts January 25th.
  • We continue to monitor rates daily and will work to mitigate rate increases wherever possible.


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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