Trans-Pacific Rates and Capacity

As capacity cuts announced by carriers in the past months materialize and US shippers rush to import freight before tariffs between the US and China take hold, the earlier-than-usual trans-Pacific peak season has resulted in an increase in the number of containers being rolled on a weekly basis and a sustained peak in spot rates.

The cancelled sailings may have resulted in capacity that is below demand instead of equal to it. Consequently, spot rates which started spiking in July have not yet started to fall.  Both BCOs and NVOCCs are reportedly paying spot rates with added premiums to minimize the risk of rolled containers and delayed deliveries.

Though there is yet no indication of when the risk of rolling might cease or when peak level spot rates will decline, AGL will advise you of any market changes as they happen.