Concerns Continue to Grow Over Ocean Carrier Rates

Concerns Continue to Grow Over Ocean Carrier Rates

The continuation of the Red Sea Crisis, piled with the current strategies of ocean carriers, grows concerns of increasing ocean freight rates. Currently, ocean carriers are continuing the use of “blank sailings” to increase their rates and manipulate the market, despite the pain of global disruptions. Now that vessel capacity is being cut on both transpacific and transatlantic services, spot rates are on the rise again. Over the last 30 days, the transpacific import ocean rates have more than doubled and the outlook is that rates to the U.S. West Coast will move past $6300/40’ and rates to the U.S. East Coast will be higher than $8300/40’ by mid June. While some carriers are offering new premium services to guarantee space and container availability, importers should expect ongoing schedule changes and delayed departures due to the carriers’ control of sailings.

We are unsure what the next few months will look like from a rate perspective, but we are committed to keeping our customers updated every step of the way. If you have any questions or require any further market information, please do not hesitate to contact us. Western Overseas greatly appreciates your continued support.

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