For this week’s logistics market update, transpacific rates aren’t falling the way the market had initially anticipated, India-US ocean space is still difficult to secure, Long Beach’s rail backlog is easing but not completely gone, and CBP has now cleared over $128 billion in IEEPA refund activity through CAPE.
Keep reading to find out the latest details!
Transpacific – Rates Trend & Market Update
- A drop in rates was anticipated for the second week of August, but the GRI has instead stayed in place.
- Rates continue to stay elevated due to tight capacity, typhoon-driven port congestion, and reduced cargo movement through the Panama Canal due to ongoing draft restrictions.
- Carriers have lined up additional blank sailings for late August, which should keep rates supported through the month.
Looking ahead to the rest of August: East Coast rates could push higher, while West Coast pricing looks more likely to hold steady.
India-US Ocean Market Update
- Space from India to both coasts remains tight, with carriers keeping tight control over vessel space and continuing to give priority to premium bookings.
- Rates continue to climb as available space shrinks.
- The shipment reliability is trending upwards, but shippers could still see schedule changes.
Shippers should plan to book 3-4 weeks ahead to lock in preferred sailings.
Port Congestion at Long Beach Container Terminal (LBCT)
- Crane trouble throughout June left LBCT with a sizable rail container backlog, hitting right as US import volumes climbed to their highest point of the year; this backlog won’t clear until sometime this month
- To speed things along, the terminal has added overnight “hoot” shifts dedicated to moving rail freight.
Customs Update: CBP – Over $100 Billion in IEEPA Tariff Refunds Processed in CAPE
- CBP told the Court of International Trade in an August 4th filing that roughly 25.1 million IEEPA-duty entries had run through CAPE as of July 31, representing $128.68 billion combined in potential and confirmed refunds since the system launched alongside ACE on April 20.
- On June 29th, A CAPE update rolled out that lets importers and brokers submit entries that are still open (or liquidated within the last 80 days), were flagged for reconciliation, but never had a Reconciliation Entry (Type 09) filed.
Plan Ahead
Rates on the transpacific look set to hold through late August, India-US space remains tight, and LBCT’s backlog will likely take the rest of the month to fully work through. We recommend that shippers moving cargo out of India book 3-4 weeks out to protect their preferred sailings. With the capacity constraints and congestion, we also recommend building in extra lead time when planning shipments anywhere, especially as we head into the fall season before holiday time.
If you have upcoming import or export shipments, our team can help you secure space, navigate these market changes, and avoid potential delays!
