What's happening with December Rates?

What's happening with December Rates?

It's December Already! (Almost)

Time flies, but we're virtually there already. December. Ahhh the festive month of fun, when products aren't made in time, vessels are full, stock is supposed to be here for Xmas, New Year sales, stock starts moving in anticipation for Chinese New Year shut down and the shipping lines announce a rate increase.

Yup. This year is no different.

However, shipping lines have confirmed two sets of rates for December. 1st to 14th, with very little change (just a small increase) and then a further increase of $200 average per TEU from 15th to 31st.

A Double however; Westbound have secured one contract which validates it's rates for the entire month which we are happy with, what with being one of our main carriers of choice. This leaves us somewhat of a decision, do we follow the market and validate to the 14th or gamble that the increase will fail, and rates simply extend....

Westbound, like you, prefer stability and as we often claim we're your logistics dept, rather than a supplier, we prefer things to be as easy as possible. Therefore we have taken the decision to confirm all our rates until the end of December regardless of what the general market does.

This leaves us needing a bit of help in return.

Just in case (in actual fact, no matter what) if the rates do indeed increase on the 15th December, we have that one single contract which we can rely on to maintain the rate levels we are promising but there will be even more pressure on vessel space than anticipated already, so we would ask that by us giving a clear months long of stability in rates, that all sea freight bookings are made well in advance so that we can plan ahead and take all our allocated space. If more is needed, we can get it - but not so easily last-minute.

Here's to a successful busy December!