Shippers worried about not being able to secure capacity for the upcoming peak season are rushing to book space and equipment on the Trans-Pacific container market.

Container spot rates from Asia to the U.S. West and East coasts have steadily increased since April. Year-over-year, U.S. imports from Asia are up 18.2% through May 2024, according to data by PIERS. Importers are also shipping early over fears of ongoing labor contract talks at U.S. East and Gulf Coast ports. Negotiations suspended in June over automation disputes have raised the threat of a port strike.

More container capacity is on the way with at least ten Trans-Pacific services set to launch in the near term. Meanwhile, forwarders with reduced contracted allocations continue to find themselves without guaranteed slots despite their agreements. Some failures by ocean carriers to honor contracted cargo are because of ship delays from port congestion in Asia or the lack of container equipment. Other instances are due to carriers prioritizing higher-paying cargo because the contracted freight rates are too low.

Source: Journal of Commerce