Peak Season Overpacked
The unexpected surge in U.S. imports during the maritime peak season continues to surprise industry analysts, with container volumes up 20% year-over-year since mid-July. Despite economic concerns, consumer demand remains robust, sustained by shifts in purchasing behavior rather than a reduction in volume. Inventory levels are relatively stable, reflecting a just-in-time approach, while transportation markets, particularly at major ports like Los Angeles, are seeing significant demand pressures. Truckload tender volumes out of Los Angeles have spiked 23% year-over-year since May, highlighting the ongoing strain on capacity, even as tender rejection rates have eased from June’s highs.
Container shipping rates from Asia to the U.S. are stabilizing, offering some relief to shippers, although the Eastern ports are experiencing slower growth compared to the West Coast. The rise in loaded container volumes moving by rail out of Los Angeles, reaching five-year highs, indicates that the demand surge is not just a pull-forward effect but a sustained trend. As we move closer to the holiday season, TLC is leveraging its expertise to navigate these challenges, ensuring that our clients’ supply chains remain resilient and efficient.
Contact TLC today to discuss how we’re managing the complexities of this peak season for your freight needs.
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