Import and export volumes around the globe continue to increase in early 2017. This is good news for international ocean and air carriers, as they experience record volumes of freight, filling their ships and aircraft with cargo.
Reports from freight forwarders and carriers are citing a strong fourth quarter in 2016 that is carrying over into 2017, with Q4 2016 volumes up anywhere from 7.5 to 10 percent over the previous year, and expected to continue to increase.
The not so good news for exporters and importers is that with this added volume, and the corresponding decrease in carrier capacity for freight, ocean and air carriers are raising their rates to take advantage of the favorable climate.
In our continuing commitment to providing our clients with the highest level of service with the carriers we prefer to use for your shipments, Royal Freight must follow these market trends and take increases in the air and ocean rates for our services.
We will therefore be adjusting our rates to cover the carrier rate increases coming directly to us, most of which will go into effect on or around April 1. For the past few years, we have been able to hold our rates steady, adjusting them only when Fuel Surcharge increases (or decreases) required adjustments, and will continue to do so.
We trust that our clients all understand that while we know that they value the high quality that Royal Freight continues to provide to them, we need to make these adjustments to ensure that we can continue to use the higher quality carriers with whom we work to make sure that their shipments are handled in the most effective and efficient way.