In July, ocean shipping prices peaked but remained elevated. However, import volume is expected to surge in early August as shippers try to fast-forward cargo to avoid potential disruption from labor negotiations.
Canadian rail companies are expected to go on strike on August 22nd, likely causing congestion and delays in the North American network. Air rates have remained relatively stable, with only a moderate rise. Meanwhile, domestic freight demand remains sluggish with ample amounts of trucking and warehouse capacity.
Regarding global trade, we are observing increased activity related to trade regulations, with sectors such as EV batteries, aluminum, and steel products expected to see tariff increases starting this month.
In the long term, shippers will continue to face supply chain disruptions that test their resilience. Geopolitical developments, labor unrest, new environmental regulations, port congestion, black swan events like the vessel explosion in Ningbo, and fluctuating volume and demand are forcing shippers to develop new strategies, which include:
- Accelerating nearshoring efforts
- Adopting multiple points of entry for imports to increase flexibility.
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Highlights from this month's update:
- Ocean rates peaked in July and have improved slightly toward the end of the month
- Over-the-road carriers are facing heightened pricing pressure due to persistent overcapacity in the trucking market.
- Air demand remains elevated with moderate gain in rates
- The North American rail industry may go on strike by August 22nd
- Parcel carriers have recently announced rate increases in fuel surcharge and mailing services
- Warehousing price and vacancy rates continue to show availability within the market amidst reduced demand and recessionary concerns.
New trade regulations, including tariffs, are going into effect in the next few months, starting in August.
Be sure to read and download our 2024 Home Delivery Survey, highlighting challenges and opportunities for retailers and shippers to evolve their operations to meet growing customer demand for fast and free delivery.
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