1/ Pro tips for import companies struggling with $20k container rates:
Don't bank on rates going back down before the end of the year. Rates are just as likely to go higher with back to school and holiday shopping seasons coming up.
2/ Inventory to sales ratios are still near record lows which means we can expect to continue breaking import volume records through peak season
3/ Although container rates may ease in early 2022 after peak season, expect container rates to stay very high until mid-2023 as 2022 will see the least new ship capacity delivered in over a decade.
4/ There is good news! Your competition is in the same boat, has very low inventories, and is likely delaying purchases to wait this out.
- Your customers however will gladly likely pay whatever it takes to get essential items.
5/
- If you are the only one with inventory your customers will pay whatever it takes and thank you for it
- Your company can come out of this as the hero and capture market share in the process
Just pay the freight and ensure you have inventory. Thank me later.
6/ Think about signing a 1 year contract next year to lock in a set freight rate next contracting season in April. You will likely get a lower contract rate than the prevailing spot rate as liners are inclined to lock in profitable rates while they are good.
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