Shippers had good reason to expect this year would be a buyer’s market for ocean freight, after carriers added capacity last year and were expected to add more in 2024. But a mix of global events and high demand across trade lanes so far in Q2 2024 has driven ocean capacity down and rates up—in some cases to a premium.
The challenge is especially acute for shippers who were not able to secure enough space at long-term contract rates when ocean carriers set strict contract deadlines in early May and/or limited allocations in the rush to finalize deals. Now, they’re wondering how they can move their goods on time without breaking the bank.
Shippers face elevated ocean rates—or air rates—if they have cargo in Asia that needs to move now. But for shipments that don’t need to be moved urgently, there are steps shippers can take to create some flexibility in their shipping strategy and help manage costs.
