We saw summer bookings spike in ocean freight in Asia and while that typically continues during the pre-Christmas season through November, we have yet to see demand fall. What is typically seen as “slack season” has in fact become just the opposite. The increased demand stems from an earlier Chinese New Year falling this year in mid-February combined with retailer optimism as they begin to build inventories again. With overall shipping confidence up, most ocean freight in Asia is now booked at 150% capacity. The result is significant delays as cargo waits for the next available ship causing havoc for shippers. The frustration factor is on the rise not only from a timing perspective but cost as well. Increased demand and limited supply provided the backdrop for the General Rate Increase effective January 15.

At Koch Maritime, we’ve been able to successfully navigate this challenging environment for our customers by relying on our network of established relationships with access to substantial volume contracts. This ensures our customer’s shipments arrive in port as planned. The use of direct consolidations containers help us better manage costs. “Direct consol” offers customers seamless and cost-effective shipping between Asia and the U.S. as less than container load (LCL), shipments are consolidated in a port like Shanghai and can ship directly to the Midwest. Koch Maritime’s ability to offer multi-country consolidation in Asia and to seamlessly coordinate the domestic shipping from Los Angeles to Midwest hubs like Minneapolis/St. Paul or Chicago is clearly a smarter route. Cargo arrives to its destination on time and cost effectively.

-Larry Garaghty, COO
Koch Maritime, Inc.

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