JMC Global - June Market Update
Navigating Ocean Freight Challenges with JMC Global: Key Takeaways
The contract season for 2024-2025 is nearing completion, with negotiations underway for a potential Peak Season Surcharge (PSS) and General Rate Increase (GRI) in June.
The focus is on space availability, as carriers are limiting capacity, causing rates to rise.
Global port congestion, particularly in Singapore, exacerbates the container market's existing challenges.
The SCFI index (indicating spot rates) has surged by 42% in the past month, with further increases expected in June due to planned rate hikes.
Space is scarce, with much of June and July already sold out, prompting customers to pay premiums for priority space.
Despite typically more available space in non-peak seasons, rates remain high due to steady demand and reduced carrier capacity compared to the previous year.
Monitoring market adjustments continues to be essential during this peak season, which typically extends through October, and JMC Global will be looking out for you!
Let us know how we can leverage our expertise to help you with your upcoming logistics needs.