INTUNE WITH TEU GLOBAL

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Ocean Freight Transportation Costs will continue decline through the end of quarter 4 (2022). The ocean carriers have ample space versus demand in the Transpacific North America and Asia to North Europe lanes. The spot market rates continue to decline, which is forcing earlier conversations with the long-term contract holders in discussing rate actions or re-negotiated contract terms to better align their pricing with the market rates. The big push during previous quarters to flush the market with space in the hopes of grabbing a sizeable market share of the COVID goods rush has left many of the carriers slow in implementing blank sailing and port omissions in certain lanes to re-adjust allocation models. This strategy has been successful in the past, but today’s market conditions and global economic uncertainties has created a puzzle to optimize profits and allocation for the ocean transportation sector. We are experiencing a cascading effect on all modes of transportation looking for balance particularly the US based trucking, which now is overpowered and under supplied in many states. This idling of fleets is leading to price reductions daily and future uncertainties in the particular the western gateways. The latest concern this week is the continued railroad labor union talks in the US. One of the largest unions have not approved the terms of the negotiations as conducted in September. One union ratified the terms (BLET) and the other (SMART-TD) have rejected on behalf of their membership. They are entering into a cooling off period when no strikes or lockouts can occur will continue to December 8th. Congress is now being requested to intervene to settle the matter favorably for both parties and eliminate any roadblocks in the supply lines during the busiest times of the year.

Do let us know at [email protected] if you have any comments on our newsletter.

Paul De Luca.

Editor in Chief & VP Business Development

Disclaimer

Utmost care has been made to compile this newsletter from leading news resources, but readers are cautioned to get professional opinion before making any decisions.?TEU Global does not assume any liability, relating with the contents of this newsletter. For specific queries, please email us at [email protected] or WhatsApp us at +17324918846, Main +17325159040.

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