Asia to US East Coast Ocean Rates Hit New Highs

[Fact Check]

Ocean freight rates from Asia to the US East Coast have surged to new record highs. According to Freightos, sustained import volumes near the end of an early peak season have caught many industry observers off guard. This trend is driven by persistent demand coupled with tight vessel capacity, creating significant cost pressures for shippers.

[AIxLogis Insight]

I know it is getting tough out there, especially with these rate spikes. Usually, we expect a cooldown after the peak season, but the demand remains incredibly resilient. When you see rates climbing like this on the US East Coast route, it is not just about the numbers; it is a signal that vessel capacity is being stretched to its absolute limit.

As a forwarder, you need to look beyond the spot rates. When space is this tight, your relationship with the carriers becomes your most valuable asset. Relying solely on spot bookings is risky right now, so I suggest you review your BCO contracts and see if there is any flexibility to secure space ahead of time. It is all about being proactive rather than reactive.

Also, keep a close eye on the ripple effects. When East Coast capacity gets squeezed, it often impacts equipment availability and space on other routes too. If you have urgent shipments, start discussing alternative routings or even air-freight options with your clients early. It is better to have a difficult conversation about costs today than to explain a missed shipment tomorrow. Let us walk through your current bookings and see where we can lock in space.

[Action Plan]

1. Prioritize critical shipments: Categorize your cargo by urgency and request space from carriers at least 3-4 weeks in advance to secure your slot.
2. Evaluate alternative routings: If direct East Coast services are unavailable, simulate the cost and lead time for West Coast port discharge followed by intermodal rail.
3. Proactive client communication: Keep your shippers updated on potential surcharges and market volatility so they can adjust their supply chain planning accordingly.

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Original source: Supply Chain Dive