FirsdTea

Since our March 2021 statement on ocean freight and shipping conditions, indicators suggest continued or intensified conditions related to shipping volumes and ocean freight costs:

increased consumer demand (e.g. stimulus checks), inundated ports, and a shortage of ships, dockworkers, and truckers are wreaking havoc
per the FreightWaves SONAR platform, bookings for China-US containers are hitting record highs
contract rates for 40-foot containers have been as high as $2,500 - $3,000, which is 25% - 50% higher than 1 year ago

Import volumes in March reflected levels seen in October, when higher levels are usually expected in the lead-up to the holiday season

Conservative projections call for conditions to persist through AT LEAST July 2021.

Firsd Tea recommends:

Develop quarterly projections of your tea supply needs, and update periodically
Provide 3-6 months' advance notice to your tea suppliers, so as to coordinate procurement and compensate for any delays in the logistics chain
Spread your orders over the widest timespan possible to help average-out spikes in freight costs and ease the strain on the supply network