After we had to deal with an unprecedented and never before seen dramatic situation on the import Trade from the Far East in recent months, it now seems that a very worrying situation is coming up on the export Trade to North America.
In recent weeks, we have been informed by several ocean carriers that their vessels have been overbooked to America and that the rates will increase substantially in the second quarter 2021.
In the past week, this undesirable situation has become even more acute. It is hardly possible to book a container to America for the next 2 months and only if you are willing to pay a significantly higher “Premium rate” will you still get on board. If we add to this the announced rate increases as of April 1, you could speak of a doubling of the rates. And the end does not seem in sight yet, the shipping companies have also announced further additional increases in addition to the rate increases as per 1 April, 2021.
Unfortunately, we are also facing considerable delays in the North Atlantic Ocean Trade for months now due to congestion in European and American ports, but also due to the well-known challenges of too few truckers and overcrowded rail terminals in the US and Canada.
Last but not least, the industry is bracing for a possible major strike in Montreal after March 22. At the moment this is not yet certain, but everybody is seeking alternatives already while there are few or none.
Therefore we suggest to our customers: please take into account a substantially longer transit time to North America and certainly a significant increase of ocean rates for containers to the US and Canada.
As always, we represent your interests and we will do everything we can to minimize the negative consequences for our customers.