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Peak Season Space Shortages

Recent developments regarding carrier capacity in the Asia and India Subcontinent markets indicate that carriers are now operating beyond capacity in nearly all lanes. Historically, capacity shrinks and spot rates increase during Peak Season. This year the space constriction is largely due to an early surge in peak season traffic volume that occurred in July as US importers rushed to book shipments before Section 301 tariffs went into effect on August 23rd. 

It is reasonable to expect that capacity will remain tight through the end of the year. There are indications the usual lull that occurs in November and December between Peak Season and the run up before Chinese New Year may not happen this year. The latest round of Section 301 tariffs is currently set to increase from 10% to 25% on January 1, 2019 and as a result the demand for space could remain strong.

In light of the tightened capacity, we advise all import clients to communicate with your suppliers and urge them to provide their bookings and forecasts at origin as early as possible. This is the best way to combat and mitigate the challenges these capacity conditions provide. Our staff is available to assist should you have questions and we encourage you to contact us at any time. 

As always, we appreciate your business and will continue to keep you posted on any further developments.

With regards,

Vantec Hitachi Transport System (USA), Inc.

 

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