Global ocean freight has seen a significant decrease in shipped volumes and demand. The downward trend has destabilised global trade and caused major effects on the Asia-Med trade and Asia-US (Transpacific) routes.
Significant impact is expected on both the Transpacific and Asia-Northern European routes, especially around the Chinese Golden Week holiday.
On Asia-Northern Europe the three main alliances, 2M Alliance, Ocean Alliance and The Alliance have announced a reduced weekly capacity between 9%-25%.
Similar blank sailings are being implemented on Trans Pacific routes, with a total of 29 announced in the week leading up to Golden Week.
This has lead to some carriers beginning to roll containers into the Pacific South West ports of Los Angeles and Long Beach due to limited space. Other US ports in the Pacific Northwest, Gulf Coast and US East coast continue to have ample capacity that exceeds demand. As a result, many importers to inland rail terminals are electing to reroute containers away from LA and Long Beach to avoid the risk of delays.
We will continue to monitor the situation. Should you have any questions regarding your global supply chain management or alternative transport and routing options, please reach out to us here.
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