After a slow first and second quarter that saw a global drop in freight to and from nearly everywhere, the international shipping industry has been growing at a steady clip and has reached new heights this past month. October’s volumes of trans-Pacific freight saw big jumps from September, and now the import freight market increases are nearly 25% higher than they were a year ago in the same time.
Because of the late start into the holiday shipping season paired with an economic recovery that began in earnest in September, the expectation is that this peak shipping season will likely extend through the end of 2020 and into early 2021. While most retailers want to stock up in time for Christmas, the number of orders for products outside of just retail means that ports will stay busy for some time.
Extended Peak Season
Low inventories and irregular buying due to the pandemic have extended the peak season for shippers and cause crunches for equipment across the world. At ports both domestic and abroad, finding enough containers, chassis, and truckers to manage the increasing imports has reached critical levels. Shippers unwilling to pay premiums to get equipment may find themselves facing delays in some stressed ports.
These busy times have been a boon for JM Rodgers and the logistics industry, as the need for importers to have a reliable partner that can make sure product moves one way or another is invaluable. While many of the largest NVOs turn their focus to the biggest multinational freight movers, the companies that must rely on the know-how and abilities of their NVO and forwarding partners can rely on mid-size NVOs to get freight delivered.
In addition, NVOs like JM Rodgers that have a lot of options on the market are well-situated to take advantage of a chaotic time like this. With many contracts and different partners specializing in specific lanes to choose from, finding equipment and space can be the critical difference that a good NVO makes when getting the product moving.
Unsurprisingly, this congestion has driven pricing up, as space comes at a premium. This year has seen additional GRIs being applied as well as ratcheting up pricing for premium space for critical shipments. For many carriers, the increased volume has seen them already burn through their commitments to customers where rates are fixed, and now many larger importers are stuck in the same freight market that further drives price increases.
In a time when prices are increasing and capacity tightens, all importers benefit from having a forwarder with the knowledge, skill, and options necessary to find the best rates and make sure your cargo is loaded. JMR’s global network allows us to find these options and bring real cost savings to our clients. Please contact us at www.Jmrodgers.com