Freight Rate Update: July 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 will keep you advised and informed as trade updates are announced.
We hope everyone is healthy. Our office & staff are fully functional while working remotely.
Air Freight – Additional capacity has been added from Asia. Rates have decreased over the past 2-3 weeks. For non-PPE goods rates are ranging from $ 4.50 – $ 7.00 per kilo. For shipments of PPE goods rates are a bit higher, ranging from $ 7.00 to $ 10.00 per kilo. All rates are subject to availability at the time of booking.
We continue to move air freight shipments daily. In most cases, we need to make bookings 3-7 days in advance. As well, our partners are arranging charter flights to meet demand and we have access to this space.
Space from Europe is less of an issue and rates continue to decrease.
Please contact us with shipment details. We can then provide standard options/pricing as well as propose creative solutions that may meet your service requirements while also reducing additional costs.
Trans Atlantic Westbound (import)
- Space is still very tight with vessels sailing at capacity. Rates have remained stable and we have long term carrier contracts which allows us to access additional space. We encourage customers to book at least 2 weeks in advance.
Trans Atlantic Eastbound (export)
- Rates remain stable. Equipment availability has improved and we are not currently seeing any major delays. We encourage customers to book at least a week in advance.
Trans Pacific Westbound (export)
- We have seen some rate reductions in the past week as carriers seem to be looking for export cargo. Equipment availability has not been an issue. We encourage customers to book at least a week in advance.
Trans Pacific Eastbound (import)
June was a bit of a wild ride for TPEB rates.
The steamship lines pushed through 2 major rate increases and for the most part, were able to sustain significantly higher rates.
For July most carriers have announced a GRI and a PSS to take effect July 1st. If these increases stick, the result will be an additional increase of $ 600 – $ 1000 per container on most lanes. With this increase, rates will be $ 1000 – $2000 higher than at this time last year.
Space remains extremely tight on most lanes with consistent rolling of cargo each week. Yet, the steamship lines continued to cancel sailings in June. In the second half of June, they finally added some additional vessels which eased the capacity crunch a bit. If carriers can sustain these rates levels, industry experts predict the steamship lines will end the year with a 9 billion dollar profit.
I try to avoid using this space as an editorial or opinion column. It is hard to argue that the current policy of cutting capacity to increase rates to historic levels while sacrificing service levels is greediness on the part of the steamship lines. Instead of adding a bit more capacity to ensure that their customers’ cargo moves on time, they continue to focus on profit at the expense of quality service. Industry reports indicate that even very large importers are having trouble obtaining space.
There is a hint that the backlash from importers is starting to be heard. The steamship lines may be starting to realizing that they need to add capacity. July and August will be critical months in determining rates and capacity strategies for the balance of 2020.