Dear Valued Partner,
We are writing to provide an update regarding ocean freight capacity and lead times as the current industry-wide challenges are impacting logistics operations globally. Due to increased demand combined with canceled sailings and disruptions in the Red Sea, capacity remains tight across the industry causing delays and resulting in:
- Limited Space Availability: Securing space on vessels is challenging as carriers are cutting committed allocations across the board
- Extended Lead Times: Shipping timelines are longer than usual
- Equipment Shortage: There is a widespread shortage of containers in Asia
The current backlog is affecting various trade lanes, with delays against estimated cargo ready dates (ECRD):
- China/VN to US East Coast: 6+ weeks
- China/VN to West Coast: 6+ weeks
- South East Asia to US East Coast: 1-4 weeks
- South East Asia to US West Coast: 3-6 weeks
- China to Canada: 1-2 weeks
- South East Asia to Canada: 6+ weeks
To minimize disruptions, we recommend taking the following actions:
- Plan for longer transit times: Factor in the extended lead times when planning your shipments
- Explore alternative shipping routes: Consider using less congested ports or lanes even if they involve longer transit times to avoid delays
- Enter orders early, submit bookings in advance and keep ECRDs updated: Place your orders early and advise factories to submit bookings at least 5 weeks before the estimated cargo ready date to secure space on vessels
- Stay informed: Monitor the developments and adjust your strategies accordingly. Your CGF Account Manager can provide valuable insights and updates
Please be assured that your business remains our priority and our team is working to:
- Mitigate delays by actively managing our backlog and exploring all available options to expedite shipments
- Secure capacity by continuously negotiating with carriers to get additional space on vessels
While these challenges are widespread, CGF is in a strong position due to our priority loading and guaranteed space agreements with some of our carriers. This allows us to offer more reliable shipping options and mitigate some of the delays impacting the industry.
We value your business and understand if you need to evaluate other shipping options during this period. Your satisfaction is our priority and we want to support you in making the best decision for your business needs.
Thank you for your continued partnership as we navigate these challenges together. Should you have any questions or require further information, reach out to your CGF Account Manager.
CastleGate Forwarding
