If you are a bicycle retailer and you actually have bikes to sell, consider yourself lucky. The ramifications of the pandemic continue wreaking havoc on the supply chain. Bikes are just one example of an industry with a severe inventory shortage. Shipping slowdowns, container shortages, port congestion and factory backlogs mean shippers are still struggling
Effective May 15th, carriers began charging a new GRI of $200-$300 per 40’ to USWC and $400 per 40’ to USEC. This applies to both FAK and premium containers. Additionally, IPI rates have increased to a range between $200-$1,000. Some carriers are restricting bookings to IPI destinations. In other words, they are not accepting bookings to internal US destinations such as Memphis, Nashville, Cleveland, Cincinnati, Indianapolis and other internal US points.
The rates are still climbing as delays continue,” said Joe Monaghan, Worldwide Logistics Group’s President and CEO. “Space continues to be in short supply. The most significant contributing factor now is the slow turnaround of vessels due to port delays caused by congestion. This results in unscheduled blank sailings at a time when we need more sailings, not fewer.”
Additionally, products and parts are slow to board vessels. Even premium service containers are experiencing a one- to two- week roll before boarding. Shippers should expect a one- to two-week lag time from original sailing dates.
According to Willy Fong, Global transitional express Managing Director in Asia, the expectation is that there will be at least one blank sailing per week from Yantian and Hong Kong to the USWC in June.
“Space will be cut by half with some carriers only releasing premium service containers and very little FAK cost container space availability,” explained Mr. Fong. “Carriers have not announced blank sailings from SHA/NB0, but if the vessels are not able to return from the U.S., that will force blank sailings. The same situation holds true in the South China area.”
Global transitional express remains determined to provide seamless customer service as much as the current conditions allow. As conditions change, we will continue to keep you informed. Contact your GTE representative for more information.