Market Conditions & Forecast — September 2020

 In Industry Insider, Industry News

As we reach the final quarter of the year, we often see shifts in market conditions that directly affect services, rates, and capacity. In addition, the COVID-19 pandemic will continue to play a role in all supply related transportation services.

With these upcoming shifts, we want to alert you and share some of our forecasts for the final part of the year. These forecasts relate specifically to trans-Pacific west bound traffic from China to the United States.

  1. Capacity — Space as a whole is extremely tight for USA trade – regardless of service (all water, combo of water and rail, etc.)
  2. Backlogs — Backlogs are a natural result of a lack of capacity. Because of these backlogs, some carriers are adding additional services to relieve the pressure.
  3. Golden Week — National Golden Week in China will soon be upon us (October 1 – 7, 2020). Production and shipping in and out of China will shut down, and we advise extra planning, vigilance, and communication with your vendors and customers as space continues to tighten.
  4. Rates — Rate increases are expected and normal for this time of year.
  5. Equipment Shortages — Equipment shortages are becoming a common sight, and it often occurs within certain shipping lines (e.g., shortages in 45’ boxes).

We will continue to monitor the market during these trying times and share this information for everyone’s benefit and information. Please keep an eye out for our industry insiders for more important announcements!

If you have any questions, please reach out to info@tbgfs.com or call us at (800) 493-9444.