Industry News

Freight Rate Update: June 2020

Ronald Vincent | M.E. Dey & Co.

We hope everyone is healthy.  Our office & staff are fully functional while working remotely.

Air Freight –  With continued cancellation of passenger flights, air freight space is at a super premium particularly from Asia to the U.S.  We have seen a slight drop in rates the past 2 weeks as additional freighter capacity had come online. We are still seeing rates range from $ 7.00 to over $ 15.00 per kilo. We are moving air freight shipments daily. In most cases, we need make bookings 3-7 days in advance. Many of our partners are arranging charter flights to meet demand and we have access to this space. 

In some cases and particularly for shipments of PPE goods, including hand sanitizer, airlines are requiring full pre-payment for the freight charges before cargo can be booked. For these shipments, we will need to arrange specific payment terms.

Space from Europe is less of an issue and rates continue to decrease.

Please contact us with shipments 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.  We encourage customers to book as least 2 weeks in advance.

 

Trans Atlantic Eastbound (export)

 

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

 

Trans Pacific Eastbound (import)

 

Now that the new contracts are in place rates have stabilized at about $ 100 – $ 200 per container higher than 2019 rates. The steamship lines continued to cancel or ‘blank’ sailings in May, but now demand has caught up. The effect has been that space is extremely tight out of some Asian ports and containers being rolled. Now that the steamship lines see the demand is outstripping capacity they have reinstated sailings for June that were to be canceled. As well, some carriers have added additional vessels (aka extra loaders) in late May and June to clear the backlog that has developed. With the continued uncertainty with the U.S. and world economy combined with the steamship lines continued efforts to manage capacity we are expecting rates to remain stable for the next month.  Small reductions in market/spot rates are possible for certain routings.

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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