Q1 2024 Freight Service Announcement & New Insulated LCL Lane & Pricing Update

Q1 2024 Freight Service Announcement & New Insulated LCL Lane & Pricing Update  

Customers are increasingly taking advantage of LCL shipments to maximize cash flow and minimize carrying costs. We are pleased to be able to support these efforts by continuing with our existing pricing.

We may, however, add a temporary pass-through charge, effective from January 20th, for certain shipping lines, due to the conflict around the Red Sea.  Where applicable, this charge will be up to $1.75 per case; plus for West Coast customers, there will also be a 16c per case Panama Canal surcharge.

New!!! Seasonal Dry Service from France to New York

We are pleased to announce that we are launching a “Dry” LCL service from France (Le Harve) to New York, which will be available to book from January 1st.  The service will operate until it becomes too warm, typically at the beginning of May when reefer containers are required.

The service will utilize dry pickup, combined with insulated containers and will cost $1.21 less per case than our regular all-reefer LCL service.  In addition to a cost reduction, the new service is also more environmentally friendly when compared to the reefer service.

Example Reefer vs Dry Pricing:

EST. Level 3 @ 200 – 349 cases

East Coast LCL 

•  France -> NY  Base price $15.78 (Dry, $14.57)

•  Spain ->   NY  Base price $16.43

•  Italy ->      NY  Base price $16.41

West Coast LCL 

• France ->   OAK Base price $15.93

• Spain ->     OAK Base price $18.18

• Italy ->        OAK Base price $18.04

• France ->   SEA Base price $16.93

• Italy ->        SEA Base price $19.04

      *these estimates exclude fuel surcharge.

Summary of the key Q1 pricing changes:

• European Union – Emissions Trading Scheme (ETS), in the range of $130 -> $150 per 40ft reefer.  Included in our base LCL tariff.

• Panama Canal Surcharge in the range of $160 – $200 per 40ft container. This will be reflected as an Emergency Charge.

• If applicable the “Red Sea” surcharge.  This will be reflected as an Emergency Charge.

FAQs:

• How do I book the new Dry LCL service?

  • For French shipments, only, email your PO to po@elentenyImports.com and make sure you identify the order as a “DRY” shipment.

• Can you provide more details of the $1.75 a case surcharge?

  • Additional details may be found here and here for MSC shipments.

  • The current effective date for this charge is for sailings on/after Jan 20th.  We will publish updates in our weekly newsletter.

• Can I get a revised LCL price list?

  • Yes.  Click here

• What is the 2024 pricing outlook?

  • LCL rates will be fixed for Q1 2024, except for applicable emergency surcharges.

  • Shipping companies have been trying to raise prices for some time. However, a large amount of additional capacity, in the form of new, ships is coming online.  We anticipate this will limit their pricing power.

• Will rates for FCLs change?

              Answer: Yes…

• • Approximately $140 will be added per 40ft container due to the new
  • EU – Emission Trading System.
  • For those on the West Coast, there will be a $160 – $200 per 40ft container Panama Canal surcharge
  • Emergency “Red Sea” surcharges will also apply for reefer shipments  for some shipping lines.   Currently, this may be as much as $2000                    per 40ft reefer container.

• Effective date?

  • Q1 rates affect all shipments that depart on or after Jan 1st, 2024.

Refer a fellow importer!

We welcome the opportunity to talk through your friend’s 2024 freight needs. Plus you benefit from our Referral Program, so forward this email to your fellow US importers and share your feedback (put us in BCC to follow up directly).

As always, thank you for your business.  We wish you a very Happy New Year!