This could be the hottest summer ever experienced for goods transportation, says an article published in FreightWaves.
Inbound Ocean TEU Volume Index
The IOTI measures which measures maritime bookings for twenty-foot equivalent units for U.S. imports, is set to hit an all-time high this week.
It covers one of the most active periods in maritime shipping thanks to the pandemic. With imports being tied more closely than ever to surface freight volumes and transportation demand, this could be a signal of an extremely active summer for domestic surface transportation providers.
The IOTI shows bookings up to a week in advance, meaning it is measuring freight that is being requested to leave their ports of origin over the next seven days.
Shippers tend to increase odds of success
Bookings do not necessarily translate to freight being moved, similar to domestic truckload, but it is a sign that shippers are becoming increasingly active in trying to secure capacity on the water. Looking at the Van Outbound Tender Volume Index (VOTVI), there are similar moments when shippers appear to spam their providers just to increase the odds of success.
Spot prices hit all-time high
The Freightos Baltic Daily Indices that measure the average spot price for shipping a forty-foot equivalent unit across the water from China to North America’s East and West coasts continue to hit all-time highs.
The East Coast rate broke $6,000 for the first time this week as shippers are booking more loads to the eastern half of the U.S., attempting to bypass the port congestion in Southern California.
There is already enough freight to keep carriers busy on the West Coast and it is very difficult to alter networks quickly. With more freight on the way, this summer may be the hottest (market) on record.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: FreightWaves
