ARC Global Logistics Inc.

Rate Increases There are several factors that have contributed to the recent increase in rates from Asia to North America. Both the ongoing Red Sea Crisis and the situation at the Panama Canal have played a significant role in these rate hikes. As a result, we have seen an impact on traffic to both the West Coast and the East Coast. Additionally, the surge in shipments during the Chinese New Year is also putting pressure on rates. It remains to be seen how rates will adjust once shipping slows down after the Chinese New Year. Maersk - Hapag Lloyd Alliance In other news, Maersk and Hapag-Lloyd recently announced a long-term collaboration called Gemini Cooperation, which will begin on February 1, 2025. Under this partnership, there will be a fleet pool consisting of approximately 290 vessels with a combined capacity of 3.4 million TEUs. Maersk will contribute 60% of the fleet, while Hapag-Lloyd will provide 40%. The aim of this collaboration is to achieve a schedule reliability of over 90% and cover seven trades with 26 mainline services supported by a global network of dedicated shuttles. As a result of this collaboration, Hapag-Lloyd will be leaving THE Alliance at the end of this month. Following Hapag-Lloyd's departure, THE Alliance has expressed its commitment to maintaining cooperation throughout 2024. However, the future of the Vessel Sharing Agreement beyond January 2025 is uncertain. Analysts suggest that the remaining members of THE Alliance are considering inviting Wan Hai from Taiwan or persuading a partner from the Ocean Alliance to join. However, these scenarios are still speculative at this point. Panama Canal Situation Lastly, the impact of draught restrictions in the Panama Canal on container shipping contniues.. Container ships have proven to be less vulnerable compared to other sectors. While there have been reductions in daily transit slots, container ships are still able to secure a larger share. However, the average daily transits for container ships dropped to 7.4 in November and December, and there is a possibility that the situation may worsen during the upcoming dry season. Container carriers might explore alternative routes like the Suez Canal, which could become more viable if they switch to larger ships. However, the uncertain conditions in the Red Sea region could limit this alternative option. If you have any questions or require further clarification, please do not hesitate to reach out to your ARC representative.

ARC Customs Brokerage Update: The Office of the U.S. Trade Representative has extended exclusions from the “Section 301” tariffs related to China’s tech practices until May 31, 2024. This includes 352 reinstated exclusions and 77 COVID-related ones. Please see further info in the Reuters article below on the subject. Please contact your ARC representative in case or email “[email protected]” in case we can help with any further exclusion-related info. https://lnkd.in/g-YvcBG8

Before we all leave for the Christmas holidays, we wanted to bring your attention to some important updates regarding the current state of the ocean freight market: There are currently several factors affecting the ocean freight market: Asia-North America: The Panama Canal Situation On the Transpacific routes to the US East Coast, congestion at the Panama Canal is continuing to affect the market. This situation is leading to limited space availability and could also lead to significant rate increases in the coming weeks. Over 80 ships daily face congestion, resulting in delays of over 10 days. Carriers are planning substantial rate increases for January. Shippers are strongly advised to schedule ahead to avoid potential delays. Asia-Europe and India-North America: The Red Sea Situation Container lines are implementing surcharges due to Red Sea diversions, impacting European cargo owners. Major carriers like Cosco and OOCL are rerouting ships around the Cape of Good Hope to avoid Red Sea attacks. This measure incurs an additional expense of approximately $2 million per ship, which is being passed on to customers, resulting in higher prices. MSC and Hapag-Lloyd are also imposing additional charges on shipments from Europe to Asia and the Middle East. CMA CGM has introduced a new "Red Sea charge" due to ongoing attacks by Houthi rebels. Changing shipping routes ensures the safety of crew and cargo but increases costs. In addition, carriers plan to implement peak season surcharges and rate increases on Asia-Europe shipments from January 1. This will cause delays and cost increases. Lastly, MSC also announced a Contingency Adjustment Charge (CAC) for shipments from India to South America, North Africa, and Berbera, due to ongoing issues in the Red Sea. Rates for these shipments have been revised immediately. To summarize, the situation in the Red Sea is causing major changes in shipping routes and significant cost implications. European cargo owners should expect surcharges on shipments to Asia and the Middle East. Congestion at the Panama Canal leads to higher rates and schedule disruptions. MSC's implementation of CAC highlights the need for shippers to plan, expect delays, and monitor rate changes. Thank you for reading this update. Feel free to reach out to ARC if you have any questions or concerns.

Wishing Everyone a Joyful Holiday Season and a Prosperous New Year! 🎉 As the year draws to a close, we want to express our gratitude for your support and collaboration. May this festive season bring you warmth, joy, and cherished moments with loved ones. Thank you for being a part of our journey, and here's to a successful and fulfilling New Year ahead! #MerryChristmas #SeasonsGreetings #HappyHolidays #NewYear2024 #ARC

As we approach the end of 2023, there's a critical development on the horizon that could impact trade relations with China. Hundreds of Sections 301 tariff exclusions, set to expire on December 31, 2023, might usher in higher tariffs on numerous goods from China starting January 1, 2024. These exclusions encompass over 300 products and 77 medical care items crucial for addressing the ongoing COVID-19 pandemic. The fate of these exclusions lies in the hands of U.S. Trade Representative Katherine Tai, who has hinted at possible changes, including removals, additions, and the introduction of a new exclusion process. As of now, no official updates have been released. At ARC, we understand the significance of these potential changes and their impact on businesses. We are closely monitoring the situation and will keep you informed about any developments. Stay tuned for updates! Your thoughts on this matter are valuable. What are your predictions for the upcoming changes in trade relations? Share your insights in the comments below. #arcgloballogistics #Section301 #tariffexclusion

Dear Valued Customers,   In light of recent developments in the Transpacific Ocean freight market, we want to keep you informed with concise insights:    1. Labor Disruption Alert at East and Gulf Coast Ports: A potential strike threat at the East and Gulf coast ports, handling 43% of U.S. imports, is looming. To avoid disruptions, BCOs are considering reverse diversions to the U.S. West Coast.   2. Panama Canal Traffic Impacted by Climate Change: Climate-induced restrictions at the Panama Canal are reducing trips by 50%, leading to potential rerouting through U.S. West Coast ports. Maersk and CMA have applied surcharges in response to these capacity reductions.   3. Port, Rail, and Inland Operations: Current reports show no vessels at anchor at major U.S. ports. Railyard dwell times have improved, with LA at 2-3 days and Seattle/Tacoma at 3-4 days.   Stay proactive in your planning, monitor updates, and connect with us for real-time assistance. We're here to help you navigate these challenges.   Best regards, The ARC Team #december2023 #transpacificoceanfreightupdates #ARCGlobalLogistics

🌐 Port Disruption Alert! Labor tensions rise as the US East and Gulf Coast dockworkers' union signals a potential coastwide strike in October 2024. The impact? Brace for supply chain ripples and potential reroutes. Read further here: https://lnkd.in/gAQX8xU3

🌊 The Panama Canal faces a critical challenge as it grapples with the effects of a severe El Niño-induced drought. As water levels reach crisis levels, the number of vessels passing through this important waterway will be limited, impacting capacity from Asia to the US East Coast.  Informative CNBC article about the current situation and its implications. 🚢💧     Read more here:   https://lnkd.in/ez5_ryCY #PanamaCanal #ElNiño #WaterCrisis #GlobalImpact

ARC Worldwide Mexico is delighted to be a proud sponsor of the 2nd Annual Logistics Workshop in the vibrant city of Villahermosa, Tabasco.   We're committed to fostering business growth in the dynamic Southeast of Mexico.   Discover how ARC Worldwide can elevate your business with our Accurate, Reliable & Cost-Efficient solutions. Reach out to us today!   Contact Information: Karlo Belloso: +52 (664) 167-2853 ([email protected]) Managing Director

🚚 Need Swift Shipping Solutions? Look No Further! 🚀 Meeting tight international and domestic shipping deadlines has never been easier with ARC GLOBAL LOGISTICS by your side. Connect with our dedicated team for top-notch assistance in: 📍 New York: 📧 Rugui Jim Email: [email protected] 📍 Los Angeles: 📧 Tracy Choo Email: [email protected] 📍 El Paso: 📧 Ana Lilia Vega Email: [email protected] 📍 Tijuana, Mexico: 📧 Karlo Belloso Email: [email protected] Your expedited freight needs, our priority! #Logistics #ShippingSolutions #FreightForwarding