Posts made in December 2020

Trans Pacific Market Update Dec 11, 2020

Dear Valued Client

 

The extremely strong  trading condition, with container volume exceeding available supply, is forecasted to remain strong through Chinese New Year.

 

Equipment shortage throughout Asia will continue to impact the ability to secure equipment necessary for booking.

 

Likewise we note many carriers are now focusing on “mother ports” and eliminating service from smaller/non-direct call ports. You may have to consider utilizing direct call ports to protect the integrity of your supply chain.

 

It is anticipated that ocean freight cost will continue to increase prior to and immediately after Chinese New Year. With the ongoing capacity issues numerous carriers are not in a position to accept any new business.

 

Thank you for your support.

 

Please contact your USPTI representative with any concerns

ONE Line Apus Update Incident Update and Market Impact Dec 9, 2020

Dear Valued USPTI Customers

 

 

ONE Line Apus Update Incident Update and Market Impact

 

ONE Apus is now confirmed to be safely berthed in the Port of Kobe after losing 1,816 containers overboard when it encountered severe weather on Monday, November 30, 2020.

 

A full safety inspection of the vessel and its remaining cargo will now take place with the assistance of local emergency services to ensure that there is no threat to people or the environment posed by the dislodged and damaged containers that remain on deck.

 

Once the vessel and cargo are declared safe, surveyors from the various stakeholders will make their initial assessments whilst stowage planners and stevedores formulate and implement a plan to ensure the safe removal of the remaining units. Then, a thorough evaluation will be made on the exact number and type of containers that have been lost or damaged and damage to the vessel.

 

USPTI anticipates the unloading of containers and vessel assessment to take several weeks. We are still awaiting an actual list of potential USPTI cargo damaged or impacted and will keep you updated on the progress as provide you with additional information as it becomes available.

 

USPTI is still evaluating the  impact to an already space constrained market and anticipates the incident will reduce overall available space for the foreseeable future as demand continues to outpace available container supply. Likewise we anticipate the incident will further erode equipment availability.

 

We will provide additional updated as more info become available.

 

Thank you for your support and we look forward to a long term relationship of service.

 

Should you have any questions or concerns please contact your USPTI representative.

USPTI – Client Update Dec 4, 2020

Dear Valued Client;

 

Thank you for your support during these difficult times.

 

The past six months have been challenging due to the uncertainties created by the CoVid 19 pandemic. Demand for container space has outpaced container capacity and has created unprecedented increases in ocean freight cost.

 

Historically peak season should be winding down but we anticipate volume to remain strong thru the first quarter of 2021. The China government will restrict the normal travel during the Chinese New Year celebration. Companies will stagger the travel of their employees over several week. We believe this stagged travel plan will slow production for several weeks before and after Chinese New Year. Albeit production make slow during this period one can anticipate space will still be at a premium. Furthermore, equipment shortages, port congestion and infrastructure stress (port capacity, chassis shortages and available inland carriage) will impact the supply chain.

 

Market  will prioritize lift based on contribution to profit and individual trade lane requirements. We anticipate trans-pacific rates to at minimum remain at current level or be subject to a premium on any a must ship cargo/PO  in the first quarter with carrier implementing peak season and equipment repositioning surcharges. One can envision that carrier will only accept cargo moving via market  rates plus additional  charge during the first quarter of 2021.

 

If you have pending PO we recommend you advance those PO’s for December shipment as we believe rates will be much higher in early 2021 than they are currently.

 

Our goal remains to offer quality reliable service at market rates. 2021 remains somewhat uncertain, as the pandemic surge may potentially impact retail sales and customer spending.

 

Please contact your USPTI representative with any questions, problems or concerns. 

 

Thank you for your continued support and we look forward to a long-term relationship of service.