Trans-Pacific

Ocean carriers plan October blank sailings even as they introduce extra-loader vessels to handle an import surge in September.

The 20-mile, three-lane dual carriageway bridge is the only road link to the Yangshan terminals, part of the huge Shanghai port that handled 20.5 million TEU in the first half of 2018.

Air cargo freight rates between China and the United States have been rising since July, according to US-based logistics provider C.H. Robinson, and shipper concern about lack of space on the trans-Pacific trade is a factor in that rise.

Uncertainty regarding the Trump administration's tariffs and when surging imports will slacken is keeping ocean carriers firmly in control of pricing in the eastbound trans-Pacific trade.

Ocean carriers are enjoying rare pricing power, which is being propelled by three factors. But the impact of their decisions on customer relationships with beneficial cargo owners and truckers remains to be seen.

OOCL is sounding alarms about the impact of a trade war on international shipping volumes after a strong first half.

Amid trade tensions, surging economic growth, and surface transportation constraints, this peak season promises to be volatile and challenging for US shippers.

The ongoing uptrend is noteworthy because, historically, the largest increases in spot rates often occur in August, usually the busiest month of the peak shipping season, and October, the last month of the holiday shipping period.

Zim is linking up with the 2M Alliance in a bid to trim costs and capacity on the Asia-US East Coast trade.

A new service from APL will test the hypothesis that shippers will pay more for better service, if it is available.

This much is known about rates for US importers from Asia heading into peak season: there are factors that would generate firm-to-higher rates, but also historical factors that would lead to a softening of rates.

Beneficial cargo owners can anticipate higher rates this peak season as Yang Ming and its THE Alliance partners announce removal of a trans-Pacific string. This development follows a similar service reduction in late June by the 2M Alliance and was accompanied Friday by an increase of 20 to 30 percent in spot rates.

SM Line said growing volume in the second half of the year should return rates to a level that covers operation costs.

Beneficial cargo owners will enjoy lower ocean freight rates in their 2018-2019 service contracts, but the total all-in charge for ocean, truck, and bunker fuel costs will be higher than last year.

Beneficial cargo owners don’t know how to interpret a 21.8 percent increase to the West Coast and an 8.1 percent jump to the East Coast in spot rates this week. There are two, alternate theories regarding why this occurred.

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