Market Update: April 11, 2018
Ocean, air, and trucking freight rates and trends for the week of April 11, 2018.
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Ocean Freight Market Updates
GRI Announced for April 15
Carriers have announced a TPEB General Rate Increase (GRI) for April 15.
The April 1 GRI for TAWB was partially implemented.
ONE Announces Commencement of Container Shipping
ONE (Ocean Network Express) officially launched on April 1. The new line represents the integration of the three major Japanese carriers: MOL, NYK, and ‘K’ Line, to produce a combined 1,440,000 TEU fleet size.
With this merger, ONE represents about 16 percent of Far East - US Eastbound trade (if we’re looking at liftings share from May 2017 - January 2018, as reported by the Alphaliner).
Air Freight Market Updates
**No Major Changes in Rates This Week **
Space is open across lanes, and there were no major changes in rates. The market is picking up Ex-India & Southeast Asia.
Air France Strikes Continue
Sources projected approximately 30% of Air France flights to be canceled on Wednesday, April 11, due to continuing strikes. This represents about 40% of long-haul flights and 25% of short-haul flights.
Air France staff unions are looking for a 6% pay raise across the board, as wages have been frozen since 2011. The strike began on February 22, and potential strikes could take place on April 17, 18, 23, and 24, according to the Air France website.
Trucking Market Updates
U.S. Spot Truck Rates Up in April
Early signs indicate that spot truck rates will continue to rise through June. This news follows the 10 cents increase in the average U.S. truckload dry van spot market in the first few days of April.
For several years, trucking companies have considered spring the new peak season for shipping. Factors contributing to this increase in demand include early autumn retail demand, holidays, and the beginning of produce season. A shortage of drivers has also contributed to the tightening truck capacity.
International Roadcheck Planned for June 5-7
The Commercial Vehicle Safety Alliance’s (CVSA) International Roadcheck is planned for June 5-7, 2018. Throughout North America, commercial vehicle inspectors will examine commercial motor vehicles and drivers.
The stated primary focus of this year’s check is hours-of-service compliance, aligning with the ELD mandate that was implemented in December 2017.