While contract season has come to a close, there’s still plenty in motion within the world of international transportation. See the below article highlights for a broader understanding of areas at play from resource leaders.
Ocean Carriers Announce the 10th General Rate Increase of 2023
Cosco GRI applies to service contract only.
Ocean Carrier Service Contracts Due May 1st
Ocean carriers are striving to keep the freight direction up by adjusting slot availability and maintaining freight rates because the volume of goods being moved has significantly decreased. They must keep spot rates high to justify shippers paying slightly higher contract rates.
Freight forwarders (NVOCCS) are wrapping up their contract negotiations with ocean carriers and the data reflects their volume at less than 30% YOY.
Air Freight Market Update
Slight demand improvements in the air cargo market have slowed rate declines. Consensus is building around the need to increase and/or restock inventory in the second half of 2023. Carriers indicate this would likely spark a peak season as in past years. Fuel surcharge increases could offset any reduction in rates that new capacity brings to the market.
Europe Labor Strikes
North America Transportation Update
U.S. West Coast Labor Contracts
A tentative agreement has been reached between the International Longshore and Warehouse Union (ILWU) and West Coast Ports. After eleven months of negotiations, the two parties may be nearing the end with key components of a deal signed.
Trucking Capacity Market Trends
While the trend indicates a continuous decline in the load-to-truck ratio, a few metro markets including Los Angeles, Dallas and Atlanta, are experiencing very tight capacity.
Reshoring & Nearshoring
Companies reshoring and nearshoring manufacturing from China to Mexico has made the Port of Laredo No.1 in the U.S.
Dallas Fort Wroth Ariport Upgrade
The DFW airport is redeveloping its cargo facilities to grow e-commerce capabilities and improve future cargo capacity. The upgrades will add 350,000 square feet of warehouse space and additional aircraft parking. The renovations are projected to finish in late 2024.