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Market Update

Market Update: October 19, 2017

Recent news and updates related to the ocean and air freight market for the week of October 19, 2017.

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Ocean Freight Market Updates

 

Ocean’s peak season is over

We’re past Golden Week, and we don’t expect to see any dramatic increases in ocean freight rates until the pre–Chinese New Year crunch.

Air Freight Market Updates

 

We’re in peak, but rates will rise further

Air rates are high -- as they have been for months -- and we expect them to rise further in the coming weeks. There will be a “super-peak” in November, with higher rates and even tighter capacity.

The iPhone launch will affect rates and space out of China

The November launch of the iPhone will drive up rates further, and will constrain space even more. The impact may continue to be felt as late as January.

Another fuel surcharge increase for cargo out of Hong Kong

Air carriers have announced another fuel surcharge increase for cargo ex-Hong Kong. Beginning November 1, the fuel surcharge will be $0.16/kg, up from $0.09/kg.

Other Freight Market Updates

FTL rates are high in Northern California

Northern California FTL rates are up due to region’s wildfires. 

**Fuel tax increase in California **

As of November 1, California will increase its diesel tax to 36 cents per gallon (this is a 20-cent increase). We expect FTL and LTL providers to increase their rates as a result, and we may also see an increased fuel surcharge rate for California drayage providers.

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