Early indications are that there is not much of a reduction in ocean freight levels from Asia, following the short respite of Chinese New Year.
Carriers are undoubtedly keen to keep the rates high for as long as possible and while pricing at this time of year generally reflects the usual low demand, there is no immediate indication of ocean rates drastically falling. In some cases, $1000 off pre-Chinese New Year 40ft rates have been achieved at best, however, it is by no means the reduction that most were hoping for.
This may be due to the backlogs that were building prior to the Chinese holiday or may be an indication of ongoing high demand and market conditions that continue into quarter two. In these unprecedented times, it is difficult to predict with any certainty.
We announced that three blanked sailings were planned for the holiday period and at very late notice a fourth was added, which will undoubtedly have had a bearing on the current situation.
Westbound will continue to monitor the situation closely and will keep you advised of developments over the next few weeks.
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