Dear Valued Customer:

Based on our current market forecasts we believe that 2024’s market turmoil will continue through at least the first quarter of 2025.

We believe the following issues could lead to service disruptions, rate increases, and equipment shortages:

1. The U.S. election: There is an expectation that tariffs will be increased sometime early next year – regardless of who wins. This could impact space availability and cause rates to rise as shippers try to import their goods as early as possible.

2. Blank and delayed sailings: December will most likely see residual impacts stemming from the ILA Strike, creating a lack of supply as shippers try to import their goods ahead of eventual tariff increases.

3. Lunar New Year 2025: Projections show that Lunar New Year 2025 is shaping up to be like Lunar New Year 2024, which saw 20% of the industry’s scheduled sailings cancelled, and rates increases across all services.

4. New Alliances (Gemini and Premier): Historically, the transition to and creation of new shipping alliances tends to have many unexpected issues, creating disruptions throughout the entire global supply chain.

As a result of these forecasts, we are advising all shippers to reach out to their logistics advisors as soon as possible to discuss what actions need to be taken to prevent any problems that could come from these issues.

Please contact your customer service representative if you have any questions about these forecasts.

Thank you!

Sincerely,

OEC Group