Attention, cross-border sellers! Ocean freight rates are going to increase!

Recently, major global shipping companies have successively issued notices of freight rate hikes for September, covering multiple routes with significant increases. The market signal is clear: Although the price of the US-Canada-Mexico route has not been directly adjusted for the time being, driven by the tight global capacity and the demand during the peak season, an upward trend in prices is imminent. It is expected that the first wave of price increase will come in early September. We suggest you make early preparations to avoid the combination of high freight rates and tight space, which may affect the shipment during the peak season.

1.Summary of the latest price adjustment information

1️ Maersk:

◾ Starting from September 10th, a peak season surcharge of $700 per container will be imposed on the routes from China and other asia-pacific regions to the Middle East

◾ will impose an additional surcharge of $800- $1,600 per container on the French Polynesia route during the same period

2️ ️ Hapag-Lloyd:

◾ From September 1st, the price of the route from the far east to the east coast of South America will be increased by $500 per container

◾ impose a peak season surcharge of $400 per TEU on asia-west Africa routes

3️ ️ CMA CGM:

◾ Starting from September 1st, the price of the Far East to East Africa route will increase by $150- $200 per TEU

The price of ◾ to west Africa, central Africa and South Africa has increased by $250 per TEU

2.Market Trend analysis

1️ ️ global general price increase trend: This round of price adjustment covers multiple routes from Asia to the Middle East, Africa, South America, etc., indicating that price hikes have become a global trend

2️ the peak season surcharge has been fully resumed: multiple shipping companies simultaneously levy peak season surcharges, indicating the official return of the traditional peak season fee model

3️ ️ significant price adjustment: This adjustment ranges from $150 to $1,600, reaching a recent high

3.The potential impact on the US-Canada-Mexico route

Although the above notice mainly targets other routes, it will have a significant impact on the routes between the United States, Canada and Mexico:

1️ risk of capacity diversion: Shipping companies may reallocate capacity and shift some vessels on the US route to more profitable routes

2️ ️ cost transmission pressure: the increase in global operating costs will gradually be passed on to all routes

3️ a change in market expectations: the global atmosphere of price hikes intensifies the market's bullish expectations, which may accelerate the tightness of cabin space

Trend prediction

◾ The increase on the US-canada-mexico route in September may exceed expectations

◾ Space shortage may occur earlier

◾ the price increase cycle may be extended until late October

4.Suggestions for sellers' coping strategies

✅ emergency response (within one week)

◾ confirm cabins for the first half of September immediately and try to lock in the current price

◾ review the sales plan for the second half of the year and adjust the inventory pace

◾ coordinate with suppliers to prepare inventory in advance

✅ medium-term strategy (2-4 weeks)

◾ consider diversified transportation options (air-sea combined transport, west coast/east coast combination)

◾ assess the feasibility of transshipment of high-value goods by air

◾ Communicate with customers about delivery time in advance and manage expectations

✅ long-term preparation (September - December)

◾ Establish a flexible supply chain system to enhance risk resistance capacity

◾ consider market diversification and reduce reliance on a single market

◾ has established strategic partnerships with logistics providers to ensure priority in space

5.Measures to ensure head

To ensure the stability of customers' supply chains, Yangcheng International has implemented:

✅ Space reservation: Lock in the space quota for September in advance

✅ Alternative options: prepare multiple alternative routes and transportation options

✅ Information transparency: Establish a weekly freight rate update mechanism

The global shipping market has entered a new round of upward cycle. Early planning and rapid response are the keys to dealing with uncertainties. We will continue to provide you with professional and reliable logistics services between the United States, Canada and Mexico to help your sales during the peak season proceed smoothly.