Tagged "COVID-19"
The Lumi manufacturing network of remains fully operational. With peak season underway, take a look at our Peak Season Deadlines to see how lead times are impacted.
Freight
Ocean freight rates from China to the US are rising once again. A general rate increase was implemented on Aug 15th sending China to US rates to recent highs. While rates have increased to both US coasts, the West Coast has increased more dramatically with a 15% climb since the end of July. Eastbound trans-Pacific shipments booked for August 15 departures are paying about $3,600 per FEU to the West Coast and $4,100 per FEU to the East Coast.
Due to high ocean rates and delays, air freight rates are increasing and are likely to continue to through the month.
The Lumi network of manufacturers remains fully operational in the US and China. Increased demand is causing delays of 1-2 weeks in both countries.
Both ocean and air carriers continue to cope with increased demand and availability. Rates are steady for now, but are likely to increase in the near term.
The Lumi network remains fully operational, though some manufacturers are reporting capacity constraints. These constraints are mostly driven by demand related to the upcoming holidays.
Ocean carriers are adding capacity to transpacific shipping lanes for August. Current vessels are at full capacity and demand remains steady. Book in advance whenever possible.
After falling steadily since May, air freight rates are expected to rise through August with the launch of products from Sony, Apple, and Samsung.
Lumi’s network remains fully operational with no closures. Expect 1-2 week delays on some specialty items.
Steady volumes are keeping ocean rates high. Though capacity is tight, orders are currently shipping at regular volumes and cadence. Only 4.7% of sailings from Asia to North America have been “blanked” (cancelled) for Q3 compared to 14.7% in Q2.
With fewer converted passenger jets currently in use, air freight rates from China to the US are on the rise again.
Typically, back-to-school business puts a strain on shipping capacity in late summer. In the coming weeks, we may see volumes increase due to back-to-school volumes, and more generally as companies try to get out ahead of a potential COVID-19 resurgence.
The Lumi network remains fully operational with no closures. Expect 1-2 week delays on some specialty items.
Ocean freight and air freight rates are relatively unchanged from last week.
All manufacturers in the Lumi network are open. US manufacturers have not been impacted by the recent increase in COVID-19 cases.
Freight
After last week’s general rate increase, ocean freight rates have leveled off and look to remain stable for the the next few weeks. Improvements in capacity have helped and it is likely that short-term demand has peaked.
Air freight rates are beginning to normalize as the capacity crunch and PPE-driven demand continue to ease.
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.
