Ocean Carriers Constrain Container Capacity

Shipping container imports to the United States have seen a major increase recently. According to the Journal of Commerce, each month this year has seen a year-over-year increase in imports from Asia to U.S. ports. This continues a trend dating back to October 2023, peaking in February with a 38.7% YoY increase.

With this increased volume, the ocean carriers continue to constrain capacity with blanked sailings and a reduction of overall capacity on many of their historically main routes (e.g. Shanghai to LA/LGB). On top of this artificial reduction in capacity, we are now also seeing port congestion adding to an already struggling global supply chain. 

Ocean freight from China and Singapore are specifically seeing the ill-effects of these shortages, resulting in shipping delays to the U.S. and Europe. Vessels are still sailing around the Cape of Good Hope because of the ongoing tension around the Red Sea, so these shortages add to a growing list of concerns around ocean freight. 

With no end in sight to these various issues, the squeezes on available capacity are sure to extend into the foreseeable future. Many carriers are now requiring advance bookings to secure your space, with some carriers already booked through June.  

How can Scarbrough Global help? 

At Scarbrough, we have been building relationships with our partners & ocean carriers for 40 years. In times of conflict like this, we can leverage our relationships to ensure you can find a place for your cargo. Our team of experts will always go the extra mile to assist you so you can focus on keeping your business operating smoothly. Please contact your Scarbrough representative for more information on how to navigate these difficult and uncertain times. 

We will continue to monitor for any updates and keep you informed as much as possible. Our people are always working their hardest to stay in front of as many potential disruptions as possible.