Flexport’s Post

The capacity crunch following carrier decisions to veto Red Sea routes will leave shippers with little choice but to pay premium rates, despite having long-term contracts.  Sea-Intelligence warned that shippers exporting from Asia would have limited access to capacity in the coming weeks. “If there is no room on the ship, your goods won’t be moved. It’s a serious risk to supply chains,” added Peter Sand. Demand for capacity has meant shippers on long-term rate contracts are being forced onto the spot market by carriers pushing for higher rates. Charlotte Goldstone reports. #capacity #containershipping #redsea #freightrates #oceanfreight

Ocean freight prices have surged in a matter of hours as more vessels divert from the Red Sea. Logistics managers were quoted a rate of $10K per 40-foot container from Shanghai to the U.K, up from last week's $2.4K. Truck rates in the Middle East are also more than double. #oceanfreight #logistics #shipping #supplychain #importers #exporters #disruption #inflation #liveyourwork #yourcargoconcierge

Fascinating insights into the current challenges faced by the global supply chain, especially with the Red Sea crisis impacting ocean freight. The ripple effect on container rates and logistics decisions underscores the need for adaptability and strategic planning in these unpredictable times. #SupplyChain #Logistics #GlobalTrade

Are you facing rising shipping costs on the Asia-to-Europe routes? A recent article from Global Logistics Alliance highlights concerns from shippers who blame carriers for price gouging. While factors like peak season surcharges, fuel costs, and security surcharges contribute, the Red Sea shipping crisis is adding fuel to the fire.  While carriers are accused of using the crisis as an excuse to raise prices, there's no evidence of a capacity shortage. This leaves shippers bracing for continued volatility and uncertainty.  At LV Logistics, we understand the challenges you face. We're committed to providing transparent pricing and reliable service throughout these uncertain times.  Contact us today to discuss your shipping needs!  #LVLogistics #ShippingCrisis #PriceGouging #AsiaToEurope #Transparency #ReliableService

How has your business been affected by rising costs for ocean shipments? On-time Ratings for container ships are falling from the consistent improvements seen in 2023. Ports that are experiencing particularly slow deliver times are in Europe and the East Coast of the United States from China. Short-Term Rates for Containers are also rising from Asia to both coasts of the United States. The timing is right now for an independent review of all of your freight-related costs. ✅ Best possible pricing based on globally benchmarked data ✅ Logistics modeling to establish the most cost-efficient mix of transportation ✅ Simplify complex rate structures DM me to learn more. #oceanfreight #logistics #supplychain #portcongestion #strategicplanning

https://lnkd.in/eP-QfHPd It's unfortunate for shippers that supply chain disruptions are impacting FCL rates again. Exploring ocean freight consolidation services can indeed be a strategic move for shippers to mitigate transportation costs and risk during these challenging times. For assistance on navigating the current market conditions, reach out to #jasworldwide. We can provide valuable insights and guidance tailored to your specific shipping challenges. #supplychain #oceanfreight #lcl #transportation

The delays associated with the longer transits, container shortages, and weather will only add to the headache of logistics managers as they embark on an early pulling forward of freight for the holidays and back-to-school season. The soaring rates come on the heels of a period of tense negotiations in March between shippers and clients over rates, which was fueled by the Red Sea diversions and the impact of the longer transits. The recent increase in demand for exports out of China, together with the dip in the number of repatriated empty containers, means shippers are starting to find empty equipment hard to come by at some export hubs. Even though demand levels are not extremely high, with vessel capacity already stretched thin, the recent increase in demand is enough to push rates up, and the added lack of containers is only helping to push them up even higher. "Carriers have plenty of room to manipulate capacity." #ContainerShipping #CapacityCrunch #LongerTransitRoute #BlankSailings #Manipulation 🧐 https://lnkd.in/gQgftPzp

Shipping lines are giving preference for loading of the spot cargo bookings where the rates are higher #shipping #shippinglines #logistics #exports #imports #exporters #exportersindia #exim #exportimport #importexportbusiness #exportimportbusiness #logistik #globaltrade #containershipping #redsea crisis

The ceiling in ocean freight prices shot up in a matter of hours on Thursday as a result of more vessels diverting from the Red Sea. CNBC has learned that logistics managers were quoted this morning an ocean freight rate of $10,000 per 40-foot container from Shanghai to the U.K. Last week, rates were $1,900 for a 20-foot container, to $2,400 for a 40-foot container. Truck rates in the Middle East now being quoted are more than double

It was just over a month ago that forwarders began to realise significant disruption was on the way for the Asia-North Europe trade – a sudden surge in demand led to tight space, combined with the beginning of spot rates’ rapid rise. However, it also appears to have caught carriers off guard as well, as data obtained from the eeSea liner database shows that capacity reductions on the trade in April amounted to almost 25% of previously advertised capacity. Altogether, some 1.68m teu of capacity ought to have been offered to shippers, according to carriers’ published schedules, while only 1.29m teu actually sailed, leaving shippers with a shortfall of 397,000teu – the equivalent of some 200,000 40ft containers – via blank sailings, omissions delayed arrivals. Gavin van Marle reports. #containershipping #seafreight #oceanfreight #logistics #supplychain #oceancarrier #blanksailings #freightforwarding https://lnkd.in/eT_st2gt