Insights

The introduction of additional capacity via extra-loaders and new providers such as BAL, CCL and Sea Lead are providing welcomed relief to the PSW sub-trade for the remainder of peak season. Most of this capacity will unfortunately steam right into a flotilla of vessels at anchor off the Southern California coast. The number of vessels at anchor are approaching record levels and with ocean carriers continuing to limit USIPI capacity, we expect port the situation to only worsen over the coming weeks.

US Exporters continue to face challenging conditions executing their shipments on the Trans-Pacific trade. Though there appears to be more available vessel space than last month, the ability to secure empty containers has not improved. The biggest challenge continues to be the constantly changing port/rail cut offs and early return dates.

We have received preliminary indication that all freighter (CAO) aircraft service from China may soon be suspended under government instruction. Such action would certainly be detrimental to TPEB airfreight cargo as the vast majority of these shipments move on freighter aircraft. The full suspension of freighter flights would leave passenger flights as the only viable cargo option.