2019 Trans-Pacific Ocean Freight Rates

Please note the following news concerning trans-Pacific ocean freight.

Carriers have begun to take a number of steps to preserve the improved rate levels which have been prevalent for the better part of the contract year. In turn, they are all also looking to educate and clarify how they each will address new fuel surcharges linked to the 2020 low sulfur fuel mandate. Steps on rate preservation include a number of aggressive blank sailing schedules where demand is projected to be quite weak- this is especially true for the post Chinese New Year period this coming February.

Though capacity coming out of China is less tight than normal this time of the year, these efforts by carriers are likely to slow, if not negate drops in spot market rates. Additionally, volume in Southeast Asia is surging, a factor which could further impact spot rates in the coming weeks.