IN THE NEWS: Nuance in Ocean Freight Rates Could Be Another Front-Loading Tea Leaf

gCaptain
December 11, 2024
Lori Ann LaRocco

FROM THE ARTICLE: Ocean freight rates have jumped up for the December 15-31 bookings, signaling a tightness of space due to demand. Logistics managers tell gCaptain the special bullet rates have quickly disappeared for the time being and the spot rate is heading up.

The combination of an ILA strike, the possibility of additional tariffs by the incoming Trump administration plus an early Lunar New Year have shippers mitigating any slowdown or tariffs by pulling forward freight.

The fact rates are going up is a tea leaf worth noting. This rate adjustment reflects what the Global Port Tracker is noting: an increase in front-loading.

The report forecasts November’s import volume at 2.17 million TEUs, a 14.4% year-over-year increase, and December at 2.14 million TEUs, up 14.3%. Total TEU volumes for 2024 are projected at 25.6 million, marking a 14.8% rise from 2023.

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In ITS Logistics Port Rail Ramp Freight Index, Paul Brashier, Vice President of Global Supply Chain, wrote, “East and Gulf ports are seeing the normal December lull post retail peak and prior to the Lunar New Year. Surprisingly, the US West Coast ports are still experiencing significant import volumes, which may be a result of some inventory being pulled forward to avoid possible tariffs and ILA strike activity in January.”

Read the full article.