Mixed Market Conditions Out of China/Hong Kong: Shanghai is finally experiencing an ease on rates after several weeks of upward momentum, however finding availability remains difficult. In contrast, the space situation remains critical for shipments out of Qingdao and Hong Kong. Capacity has been removed from the market over the past few weeks putting pressure on the movement of larger shipments. We have seen for the first time, instances where it may cost more per Kilogram on larger shipments than on smaller shipments. This situation is expected to continue until May.
Update on Air Export Situation: U.S. exports continue to face challenges with widescale backlogs. Airport terminals remain under pressure with cargo drop-off lines often exceeding 10+ hours. In some cases, terminals have rejected outbound cargo due to lack of space available in the warehouse itself. The upcoming Ramadan holiday is adding additional strain as increased passenger travel, and excessive luggage, takes priority over cargo.