The Eastbound Trans-Pacific trade is seeing unusually strong demand for Asian imports in November when peak season typically slows. Steady retail sales, concerns over higher tariffs, and the mid-January expiration of the labor agreement at U.S. East and Gulf Coast ports have reduced blank sailings to about 5.4% on the West Coast and 8.1% on the East Coast for November, according to eeSea. This is down from 11.5% recorded a year ago.
PIERS data shows U.S. imports from Asia reached 1.72 million TEUs in September, up 16.7% year-over-year, while the National Retail Federation expects a 3.1% increase in imports for October. Ocean carriers are also adding general rate increases (GRIs) of $500 to $600 per FEU starting 1 November, despite strong rates since summer.
Forwarders note several factors contributing to strong volumes. These include frontloading of shipments due to strike concerns, tariff uncertainty following the U.S. election, and an early Chinese Lunar New Year on 29 January. With capacity constraints persisting through November into December, forwarders and carriers say peak season surcharges (PSSs) will likely continue, although at lower levels.
Source: Journal of Commerce
