Global summary
Global capacity continues to expand while demand has softened from earlier front loading. The result has been generally softening of rates for about 10-11 weeks now. Schedule reliability has improved from last year, yet it still trails pre-Covid performances. Expect a short-lived early September push from GRIs pre-Golden Week on China origin lanes, then reverting back to softer path into October as a major restocking push seems unlikely.
Weather and yard density keep several top Asian and North European hubs under pressure, adding days of delay to many routings. Transit times are lower in many key lanes.
The report indicates that many importers are barely meeting the minimum quantity commitments (MQC) of their contracts but are shifting volumes to spot markets for better deals.
At the same time, capacity continues to grow while carrier blank sailing tactics have yet to stop the price slides. Global container ship orderbooks are on track to surpass 10 million TEU. This points to a coming of overcapacity.
The US tariff situation for global supply chains, continues with significant impact to shippers. Importers are taking more cautious approaches for the coming weeks, balancing inventory levels with shifting in tariff exposure.