According to an article on joc(dot)com, “beneficial cargo owners are reassessing their supply chain strategies for the coming shipping season.” BCOs may be keeping more cargo on the West Coast, where freight rates are expected to remain low.
BCOs that had approached their trans-Pacific contract negotiations with an eye toward shifting more cargo to the East Coast may be looking again at keeping more on the West Coast where vessel overcapacity will continue to keep freight rates low.
In fact, the article reveals that a global oversupply vessel capacity is expected to last “at least two more years.” More smaller vessels are expected in the trans-Pacific, which could contribute to “depressed rate levels.” Ocean freight and bunker surcharges are also expected to go down.
How will actual shipping schedules be impacted? Read the original article to learn more: http://bit.ly/1PLOQb9
Note: The above is a summary of an original article posted on joc.com and is meant for informational purposes only.