Recently, some sources predicted that in October, shipping rates in the U.S. West and U.S. East may rise by $4,000!
There have been reports that after a rise lasting more than three months, shipping prices have reached an inflection point, with declines in both the U.S. West and U.S. East. Against this backdrop, what is happening with the sudden rumors of an impending surge in shipping rates? Will there be subsequent big changes in the global supply chain?
Shipping companies have reported an increase of 4,000 U.S. dollars in freight rates
The reason why this rise in data, the main reason or August 22, there are Asian shipping companies to the U.S. Federal Maritime Commission (FMC) report, plans to October 1 on the U.S. West and U.S. East routes per 40-foot container (big box) tariffs up 4,000 U.S. dollars. The increase is reported to be more than 50%. The main reason is the probability of a U.S. port workers’ strike on October 1.
The original U.S. East Coast and Gulf Coast ports of longshoremen and port employers contract will expire at the end of September this year, the International Longshoremen’s Association has made it clear that if the new contract is not in place, a strike will be held on October 1st. But because of the new contract within the longshoremen’s union wants with the East Coast and Gulf Coast maritime employers in the next six-year contract period pay increases of nearly 80%, which is analyzed by the industry a high probability of reaching a unity of opinion, that is to say, this strike is likely to occur. And in response to this prediction, there are already shipping companies and brands to respond.
It is reported that on August 22, there are Asian shipping companies to the U.S. Federal Maritime Commission (FMC) report, plans to October 1 on the U.S. West and U.S. East routes per 40-foot container (big box) tariffs upward by 4,000 U.S. dollars. This increase, if calculated on the basis of the current tariff, will make the U.S. West Route tariffs rose by about 67%, the U.S. East Route rose by about 50%. Walmart (Walmart) and other retailers and other importers are trying to catch up in September 30 before the expiration of the union contract to ship goods in. It has been predicted that subsequent shipping companies may follow the adjustment of freight rates.
Port worker strikes are one of the major challenges facing the maritime industry, often leading to disruptions in port operations, backlogs of cargo, and consequent impacts on the stability of the global supply chain. This forecast of a possible U.S. East Coast and Gulf Coast port worker strike is not unique. Previously in December 2012, there were strikes at the ports of Los Angeles and Long Beach in California, U.S. Although most holiday merchandise shipments had already been processed, so port traffic was not at its peak, even so, the losses were as high as $1 billion per day.
Then there was the July 2023 strike by longshoremen at the Canadian ports of Vancouver and Prince Rupert over the breakdown of labor contract negotiations, which led to a prolonged port shutdown. More than 20 ships lined up at anchor waiting to berth, and several shipping lines announced port-hopping and indefinite extensions of shipping schedules. An estimated $4.6 billion worth of cargo was affected, with disastrous effects on the Canadian economy. In the last few days, workers at 12 of India’s largest ports have also declared an indefinite strike from August 28 because of unmet long-term stipend pay. In response, freight forwarding giant DXN has also issued a warning that the strike, if it comes to fruition, is expected to have a serious impact on cargo movement, leading to delays, escalating transportation costs and severe congestion at the port of Nawabsheva.
There has also been a strike a few days ago on the Canadian Railway Union strike as an example, bringing the impact of freight rates is not small. It is reported that Hapag-Lloyd because of the fear of the railroad strike on the impact of freight, directly on the water transportation, destination for the Canadian ports but need to be delivered in the U.S. inland containers added an additional $350 per bill of lading to earn freight. Customers were also advised to try other trucking options within Canada instead of rail, and were even advised to use U.S. ports as loading points.
But many regional routes tariffs have also declined, such as in early September in East China, South China, the European land line, the Middle East line, Southeast Asia line; there are also some lines continue to rise, such as East China’s U.S. line, Central and South America line, Australia and New Zealand line and so on.
And with the arrival of the peak selling season, this week’s three major official courier together with the peak season surcharge, the magnitude is relatively large: UPS growth of about 30%; FedEx and DHL increase close to 40~50%. There are a lot of customers of the return order are beginning to reconsider the increase in costs brought about by the increase in freight charges, so it is recommended that customers, if they place an order, it is best to arrange in advance, you can choose a slower express delivery method to save costs.
Post time: 2024-09-18 10:16:45
