We have seen a lot of changes in the market in 2022 and the year is ending with continued uncertainty. The traditional Chinese New Year peak is being impacted by both its early start date and companies closing as early as January 1, 2023. In addition, the relaxation of COVID-19 policy in China has resulted in an uptick in cases, further impacting production as workers stay home. This is in addition to the overall reduction in demand.
Carriers are also responding by reducing capacity, but so far the reductions have not been enough to rebalance supply and demand. The outlook on rates is that we expect them to either see a slight increase or remain flat, with a possibility for continued rate erosion on the East Coast as well as IPI locations.
The market expects that demand will continue to be soft into Q1 of 2023. The earliest we see demand increasing is mid-February 2023 after factories re-open, but a further risk of delay if US inventories do not decrease. An indication of how the market has shifted is that the Los Angeles /Long Beach terminals are experiencing a surplus of chassis—a big change from when chassis were in short supply a few months ago. However, we continue to see congestion on the rail side and we expect a few more months before IPI congestion eases.
As we say goodbye to 2022, expect another dynamic year in 2023, but with some very different winners and losers in the market.
Stay Cool 🧊 With Shippabo
Did you know that Shippabo can secure refrigerated containers for your products?
Our Operations Team has access to reefer containers, helping your products to stay temperature-controlled from port to warehouse.
Talk with one of our logistics experts today to learn more.
As a reminder for customers, we have sunsetted shipment timelines within the Shippabo app. In our continuing effort to provide users with a clear picture of their inventory, this feature has been replaced by Activities and Messages.
While shipment timelines were useful, we realized that we could be doing more to cut through the noise and provide a streamlined narrative of customers’ shipments. To see the changes, click below to read our blog post about the update.
Shippabo would like to wish you and your family a safe and joyful holiday season! Please note that our US office will be closed on the following dates:
Monday, December 26, 2022 Tuesday, December 27,2022 Friday, December 30, 2022 Monday, January 2, 2023
Our PH team will remain available to support and answer your questions during this period. The US team will return on Tuesday, January 3, 2023.
From all of us at Shippabo, Merry Christmas and Happy New Year! 🎄🥳
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