Welcome to this week's supply chain update brought to you by Phoenix International. Let's start with market conditions. Transpacific eastbound demand stayed flat through March with no post Lunar New Year rebound forecasted. Volumes fell short and the market remains soft. Although floating rates have stabilized, carriers are pushing the general rate increase for April. Peak season surcharges have largely been withdrawn from March. On the Far East, westbound lane bookings picked up in mid March signaling early signs of recovery, however over capacity. Persists and freight rates dipped slightly. Only one blank sailing is announced for early April, and most carriers delayed Griss until later this month. In the transatlantic westbound, trade rate trends are mixed. Planned surcharges for Southern Europe have been delayed, N Europe passes been withdrawn, and demand in the East Mediterranean remains flat with no new surcharges announced. Now let's take a look at operational updates on the transpacific eastbound lane. Equipment availability remains strong across origin hubs, supporting smooth operations. For the Far East West down trade, a fire on the One Integrity 006 W disrupted a major service. This incident could delay Southeast Asia transhipments, especially for cargo routed through Singapore. On the transatlantic side, equipment shortages persist in Central Europe, affecting Austria, Slovakia, Switzerland, Hungary and southern Germany. Merchant in the East Mediterranean is also starting to see tightness. Carrier provided haulage remains the recommended option to manage these shortages. Turning to capacity management, transpacific eastbound capacity remains steady, with vessel deployment staying above 80% into April. Despite soft demand, no major disruptions are reported in the Far East. Westbound lane oversupply continues with only minimal blank sailings. Space remains widely available, providing flexibility for shippers on the transatlantic westbound route. While March saw fewer cancellations, Southern Europe will face more blank sailings in April due to congestion at Prior S Merson. In Valencia, these cancellations aim to maintain schedule reliability. the US drayage market continues to shift. Provider account has dropped by 14% from its 2023 peak. However, capacity still exceeds demand, mainly due to driver consolidation under larger carriers. This keeps downward pressure on drayage rates. Roll on roll off ports across the US are preparing for potential disruptions from new 25% tariffs on imported vehicles and parts set to begin April 2. The Seattle Tacoma Gateway is especially exposed with a new $200 million terminal under construction to support auto related trade. South Carolina Ports has expanded capacity at Inland Port Greer with a $55 million upgrade. The expansion adds 9000 feet of rail track and boost handling to 300,000 lifts. Annually, responding to growing intermodal demands since 2014, ship owners are updating charter contracts ahead of a proposed U.S. tax on Chinese built ships. New clauses are being added to clarify cost responsibilities, with some placing tax liability on charters. The full scope of the tax is still under regulatory review. And that concludes our update on the global supply chain. Thank you for joining us. We will continue to monitor these developments and keep you informed. You can follow us on LinkedIn and YouTube for more supply chain related updates.
