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Supply Chain Update

To our valued customers,

We hope this message finds you well. We are writing to inform you about the current challenges affecting global shipping that may impact your orders in the upcoming months. As of May, and heading into June 2024, the industry is experiencing several critical trends that could affect shipping times and costs:

1     Severe Ocean Port Congestion and Schedule Volatility: Major ports such as Singapore and Shanghai are facing severe congestion, leading to sailings delays ranging from 5 to 7 days. This congestion is exacerbated by empty containers piling up in Sri Lanka and the United Arab Emirates, with shortages reported in China and Singapore.

2     Increased Rates and Peak Season Challenges: The industry is seeing early peak season volumes and heightened demand, causing shipping rates to spike to record levels outside of the Covid-19 era. Since early May, a significant portion of cargo owners with long-term ocean contracts have faced rolled cargo and new surcharges, as carriers prioritize higher-paying shipments.

3     Capacity Reduction: Port congestion continues to escalate, resulting in the removal of significant container capacity. Just last week, 200,000 40-foot container capacity was taken out of circulation, with expectations of further reductions in the coming weeks.

4     Potential Coast-wide Labor Strike at East and Gulf Ports (October 1, 2024): There is a looming risk of a labor strike affecting East and Gulf Coast ports starting October 1, 2024. This could further disrupt port operations and lead to delays in cargo handling.

5     Potential U.S.-Canada Border Delays: There is a possibility of border delays as approximately 9,000 rail workers are negotiating contracts. Further strike action or government intervention could lead to disruptions in cross-border shipments.

These challenges underscore the volatile nature of current global shipping conditions. We are actively monitoring the situation and working closely with our shipping partners to mitigate any potential impact on your shipments. However, we advise planning ahead and allowing for additional transit time for your orders.

We are committed to honoring the quoted price for all items in your order. There will be no surcharges or additional fees applied.

Please note that shipments are currently experiencing delays beyond our initial estimates. However, we anticipate delivering almost all items on time.

Please feel free to reach out to our customer service team if you have any specific concerns or need further assistance regarding your shipments. We appreciate your understanding and patience during this period of uncertainty.

Best regards,

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Craig Bachman

Craig Bachman Imports, Inc.

Notice: Craig Bachman Imports, Inc. reserves the right at any time to increase prices on customer orders to include any new, additional or reinstated government-imposed tariffs at its sole discretion.

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