Tagged "freight"
All manufacturers in the Lumi network are open. Chinese manufacturers are entering into the busy season. To see how the busy season impacts order deadlines, take a look at our Peak Season Deadlines.
Freight
The increase in ocean freight costs has slowed compared to the last few weeks, though demand and restricted capacity are keeping prices high. Carriers have restored some previously cancelled sailings for July in order to stabilize availability and price as much as possible.
Air freight rates have significantly dropped from their April peak, though they are nearly double what they were this time last year.
All manufacturers in the Lumi network are open. Chinese manufacturers continue their ramp-up into the busy season. Expect delays in production of 1-2 weeks for now. Take a look at our Peak Season Deadlines to see how these delays are impacting order deadlines.
Ocean Freight
Demand for ocean freight continues to increase. This combined with limited capacity from cancelled sailings has pushed rates higher. Prices for China-US East Coast reached $3,000/FEU for the first time since July 2019. China-US West Coast rates are at their highest level since November 2018.
At the beginning of this week, some cancelled sailings were restored. However, with businesses uncertain about consumer spending, carriers are unsure how much capacity to keep on the market. Expect this uncertainty to be a constant throughout June and into July.
All manufacturers in the Lumi network remain open. Chinese manufacturers are entering their busy season. Delays of 1-2 weeks are in effect, and will extend in the coming weeks.
Freight
Air freight rates continue to decline from highs earlier this year. This is due to more capacity with the increase of passenger air travel as well as cooling demand. Still, rates from Shanghai and North America are roughly double what they were this time last year.
Ocean rates have increased unexpectedly due to a spike in demand and limited capacity. Some carriers are reporting delays of up to two weeks, and rate increases of 15-20%. Transpacific sailing capacity for Q3 is expected to be 5-10% less than the same time last year. Carriers have just announced more scheduled cancellations for this period.
No reported closures within the Lumi network. Plan on 1-week delays for US manufacturers.
China’s busy season (which typically comes at the end of summer) is starting early. While Chinese manufacturers are fully operational, some capacity is still being diverted for the production of PPE and other coronavirus related items. They’re also seeing a rise in orders, possibly due to companies’ preparing for the holidays in the US. Expect delays of 1-2 weeks for now. Closer to July, delays will increase.
Freight
Air freight rates remain high in comparison to this time last year, but have significantly reduced from peaks seen earlier in the quarter. Improved capacity and steps to resolve bottlenecks are resulting in eased prices. Ocean freight rates remain stable, though inconsistent availability may result in up to 1-week delays.
Network status remains the same with no new closures, 1-week delays for US manufacturers, and China is operating at full capacity.
Expect high rates for air freight and standard rates for ocean freight as both continue to cope with increased demand and availability.
Over 250 factories in the United States have reported status updates to Lumi this week.
US manufacturing
There have been no newly reported factory closures. All manufacturers in the Lumi network are operational. Given demand, plan for delays of up to one week.
China manufacturing
Manufacturers are operating at full capacity and have mostly recovered from the backlog of orders.
Freight
Ocean freight rates fell slightly, but they remain relatively stable due to scheduled cancellations. Some carriers have added vessels to June sailing schedules. It is unclear what impact this will have on rates and availability. Plan for 1-2 week delays until more information is available.
The conversion of passenger jets to air cargo has mostly restored capacity. Air freight rates remain high due to the increased demand, though are leveling out.
Over 260 factories in the United States have reported status updates to Lumi this week.
US manufacturing
The closed manufacturers that were previously reported have reopened and the entire Lumi network is up and running. Though all factories are running at full capacity, you can still expect delays of up to two weeks due to increased demand.
China manufacturing
Production has fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity. Expect production delays of up to one week due to increased demand.
Freight
Ocean freight rates remain unchanged and vessel availability remains limited due to scheduled cancellations. Vessel cancellations have been scheduled through June. Plan for 1-2 week delays until then.
Air cargo rates remain high due to the decrease in passenger jet capacity and increase in demand for urgent supplies. Rates are 3-4 times normal levels for this time of year and will likely continue to increase.
Over 180 factories in the United States have reported status updates to Lumi this week.
US manufacturing
Packaging factories remain an essential service and continue to operate at full capacity, with one exception in New York which was first reported in late March. Increased demand could increase lead times by up to 2 weeks.
China manufacturing
Production has almost fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity.
International freight shipping
To control freight rates, ocean carriers have cancelled a record number of sailings. Rates from China to the US remain mostly unchanged, but you should plan for 1-2 week delays due to limited vessel availability.
Air cargo rates remain high due to a decrease in passenger jet capacity and an increase in demand for urgent supplies. Rates are currently 3 to 4 times normal levels for this time of year and will likely continue to increase.
US manufacturing
Over 700 factories in the United States have reported status updates to Lumi this week. Packaging factories have continued to be deemed essential services and are remaining operational. No new closures have been reported. Up to 2 week delays can still be expected for most factories in the US.
The Network Status tracker now features a map that helps you track downtime across states and cities in the United States.
Over 260 factories have reported their status in the last 24 hours. Here are the latest updates.
US manufacturing
Packaging factories reporting across every state have been designated as essential business and are still in operation.
As of this writing, only one factory (in the state of New York) reported as closed until further notice. This is an independent family-owned factory that has been quarantined.
Less than 10% of US factories are reporting lead time increases. These are primarily due to increases in demand rather than decrease in capacity.
China manufacturing
China has continued its gradual recovery. Guidance remains at roughly 1-2 week lead time delays.
