TRADE ALERT:
Escalating Global Factors Drive Up Shipping Costs and Transit Times
*Updates in red*
Trade Alert Summary:
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Canal Disruptions Impacting Costs: Both the Panama Canal and Suez Canal disruptions drive carriers to push for continued cost increases. Rates surged by over 60% to the US West Coast and 50% to the US East Coast Ports from Asia on January 1st. Further increases hit on January 15th, which are already softening
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Guideline Variations and Clarity: Differing carrier guidelines are causing major gaps in pricing strategies. Closer monitoring through February could offer clearer insights into upcoming changes.
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Chinese New Year Pressure: The ongoing yearly push before Chinese New Year is tightening space in shipments. Longer transit times might lead to potential equipment shortages in the market.
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Impact of Red Sea Situation: If the Red Sea situation improves and vessels return to utilizing the Suez Canal fully, it could immediately ease price increases. However, the daily-changing nature of this situation makes predictions uncertain. Uncertainty may be at a greater level than earlier this month.
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Panama Canal Usage and Diversions: Despite concerns, most container carriers actively use the Panama Canal with reservations booked well in advance. Contrary to expectations, there haven't been extensive diversions despite the Red Sea Crisis.
Rogers & Brown is diligently monitoring the current challenges and will keep you informed as we gather more information. During this time, we kindly ask for your understanding regarding potential delays. Should you require any assistance, please don't hesitate to contact your designated representative, contact us via email, or call us. Your patience and support are greatly appreciated.
Sales@rogers-brown.com
www.rogers-brown.com
(843) 577-3630
Best regards,
Rogers & Brown Team
