Packaging Supply Chain Network Status

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Tagged "freight"

September 11, 2020

Manufacturers based in Louisiana and Texas are still recovering from Hurricane Laura, though most production capacity has been restored.

Chinese manufacturers are at full capacity and working through peak season orders. Production will be shut down from October 1 to 8 for the Golden Week holiday.

Freight

Ocean freight rates from China to the US continue to climb following a general rate increase at the beginning of September. Eastbound transpacific freight rates are 140% higher than the same time last year.

Despite carriers restoring cancelled sailings, demand is currently outpacing capacity.

August 27, 2020

Hurricane Laura is impacting production at many facilities throughout Louisiana and parts of Texas. Freight routed through that region is also experiencing delays. 

We are closely monitoring the situation. If you have active orders impacted by Hurricane Laura, we will contact you with specific updates.

August 14, 2020

The Lumi manufacturing network of remains fully operational. With peak season underway, take a look at our Peak Season Deadlines to see how lead times are impacted.

Freight

Ocean freight rates from China to the US are rising once again. A general rate increase was implemented on Aug 15th sending China to US rates to recent highs. While rates have increased to both US coasts, the West Coast has increased more dramatically with a 15% climb since the end of July. Eastbound trans-Pacific shipments booked for August 15 departures are paying about $3,600 per FEU to the West Coast and $4,100 per FEU to the East Coast.

Due to high ocean rates and delays, air freight rates are increasing and are likely to continue to through the month.

August 7, 2020

The Lumi network of manufacturers remains fully operational in the US and China. Increased demand is causing delays of 1-2 weeks in both countries.

Both ocean and air carriers continue to cope with increased demand and availability. Rates are steady for now, but are likely to increase in the near term.

July 31, 2020

The Lumi network remains fully operational, though some manufacturers are reporting capacity constraints. These constraints are mostly driven by demand related to the upcoming holidays.

Ocean carriers are adding capacity to transpacific shipping lanes for August. Current vessels are at full capacity and demand remains steady. Book in advance whenever possible.

After falling steadily since May, air freight rates are expected to rise through August with the launch of products from Sony, Apple, and Samsung.

July 21, 2020

Lumi’s network remains fully operational with no closures. Expect 1-2 week delays on some specialty items.

Steady volumes are keeping ocean rates high. Though capacity is tight, orders are currently shipping at regular volumes and cadence. Only 4.7% of sailings from Asia to North America have been “blanked” (cancelled) for Q3 compared to 14.7% in Q2.

With fewer converted passenger jets currently in use, air freight rates from China to the US are on the rise again.

Typically, back-to-school business puts a strain on shipping capacity in late summer. In the coming weeks, we may see volumes increase due to back-to-school volumes, and more generally as companies try to get out ahead of a potential COVID-19 resurgence. 

July 13, 2020

The Lumi network remains fully operational with no closures. Expect 1-2 week delays on some specialty items.

Ocean freight and air freight rates are relatively unchanged from last week.

July 6, 2020

All manufacturers in the Lumi network are open. US manufacturers have not been impacted by the recent increase in COVID-19 cases.

Freight

After last week’s general rate increase, ocean freight rates have leveled off and look to remain stable for the the next few weeks. Improvements in capacity have helped and it is likely that short-term demand has peaked.

Air freight rates are beginning to normalize as the capacity crunch and PPE-driven demand continue to ease.

June 26, 2020

All manufacturers in the Lumi network are open. Chinese manufacturers are entering into the busy season. To see how the busy season impacts order deadlines, take a look at our Peak Season Deadlines.

Freight

The increase in ocean freight costs has slowed compared to the last few weeks, though demand and restricted capacity are keeping prices high. Carriers have restored some previously cancelled sailings for July in order to stabilize availability and price as much as possible.

Air freight rates have significantly dropped from their April peak, though they are nearly double what they were this time last year.

June 18, 2020

All manufacturers in the Lumi network are open. Chinese manufacturers continue their ramp-up into the busy season. Expect delays in production of 1-2 weeks for now. Take a look at our Peak Season Deadlines to see how these delays are impacting order deadlines.

Ocean Freight

Demand for ocean freight continues to increase. This combined with limited capacity from cancelled sailings has pushed rates higher. Prices for China-US East Coast reached $3,000/FEU for the first time since July 2019. China-US West Coast rates are at their highest level since November 2018. 

At the beginning of this week, some cancelled sailings were restored. However, with businesses uncertain about consumer spending, carriers are unsure how much capacity to keep on the market. Expect this uncertainty to be a constant throughout June and into July.

June 10, 2020

All manufacturers in the Lumi network remain open. Chinese manufacturers are entering their busy season. Delays of 1-2 weeks are in effect, and will extend in the coming weeks.

Freight

Air freight rates continue to decline from highs earlier this year. This is due to more capacity with the increase of passenger air travel as well as cooling demand. Still, rates from Shanghai and North America are roughly double what they were this time last year.

Ocean rates have increased unexpectedly due to a spike in demand and limited capacity. Some carriers are reporting delays of up to two weeks, and rate increases of 15-20%. Transpacific sailing capacity for Q3 is expected to be 5-10% less than the same time last year. Carriers have just announced more scheduled cancellations for this period.

June 3, 2020

No reported closures within the Lumi network. Plan on 1-week delays for US manufacturers. 

China’s busy season (which typically comes at the end of summer) is starting early. While Chinese manufacturers are fully operational, some capacity is still being diverted for the production of PPE and other coronavirus related items. They’re also seeing a rise in orders, possibly due to companies’ preparing for the holidays in the US. Expect delays of 1-2 weeks for now. Closer to July, delays will increase.

Freight

Air freight rates remain high in comparison to this time last year, but have significantly reduced from peaks seen earlier in the quarter. Improved capacity and steps to resolve bottlenecks are resulting in eased prices. Ocean freight rates remain stable, though inconsistent availability may result in up to 1-week delays.

May 26, 2020

Network status remains the same with no new closures, 1-week delays for US manufacturers, and China is operating at full capacity. 

Expect high rates for air freight and standard rates for ocean freight as both continue to cope with increased demand and availability.

May 18, 2020

Over 250 factories in the United States have reported status updates to Lumi this week. 

US manufacturing

There have been no newly reported factory closures. All manufacturers in the Lumi network are operational. Given demand, plan for delays of up to one week.

China manufacturing

Manufacturers are operating at full capacity and have mostly recovered from the backlog of orders.

Freight

Ocean freight rates fell slightly, but they remain relatively stable due to scheduled cancellations. Some carriers have added vessels to June sailing schedules. It is unclear what impact this will have on rates and availability. Plan for 1-2 week delays until more information is available.

The conversion of passenger jets to air cargo has mostly restored capacity. Air freight rates remain high due to the increased demand, though are leveling out.

April 30, 2020

Over 260 factories in the United States have reported status updates to Lumi this week. 

US manufacturing

The closed manufacturers that were previously reported have reopened and the entire Lumi network is up and running. Though all factories are running at full capacity, you can still expect delays of up to two weeks due to increased demand. 

China manufacturing

Production has fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity. Expect production delays of up to one week due to increased demand. 

Freight

Ocean freight rates remain unchanged and vessel availability remains limited due to scheduled cancellations. Vessel cancellations have been scheduled through June. Plan for 1-2 week delays until then.

Air cargo rates remain high due to the decrease in passenger jet capacity and increase in demand for urgent supplies. Rates are 3-4 times normal levels for this time of year and will likely continue to increase.

April 22, 2020

Over 180 factories in the United States have reported status updates to Lumi this week.

US manufacturing

Packaging factories remain an essential service and continue to operate at full capacity, with one exception in New York which was first reported in late March. Increased demand could increase lead times by up to 2 weeks. 

China manufacturing

Production has almost fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity. 

International freight shipping 

To control freight rates, ocean carriers have cancelled a record number of sailings. Rates from China to the US remain mostly unchanged, but you should plan for 1-2 week delays due to limited vessel availability.

Air cargo rates remain high due to a decrease in passenger jet capacity and an increase in demand for urgent supplies. Rates are currently 3 to 4 times normal levels for this time of year and will likely continue to increase.

April 8, 2020

US manufacturing

Over 700 factories in the United States have reported status updates to Lumi this week. Packaging factories have continued to be deemed essential services and are remaining operational. No new closures have been reported. Up to 2 week delays can still be expected for most factories in the US.

March 30, 2020

The Network Status tracker now features a map that helps you track downtime across states and cities in the United States.

Over 260 factories have reported their status in the last 24 hours. Here are the latest updates.

US manufacturing

Packaging factories reporting across every state have been designated as essential business and are still in operation. 

As of this writing, only one factory (in the state of New York) reported as closed until further notice. This is an independent family-owned factory that has been quarantined.

Less than 10% of US factories are reporting lead time increases. These are primarily due to increases in demand rather than decrease in capacity.

China manufacturing

China has continued its gradual recovery. Guidance remains at roughly 1-2 week lead time delays.

March 23, 2020

Over 2,000 factories received our latest survey, with hundreds of factories reporting so far. Results will be updated throughout the day as more factories report.

US manufacturing

2 factories so far have reported closures or severely limited availability. Both are independent manufacturers in the New York area. This could extended lead times by 3-4 weeks or more. We recommend that companies relying on New York packaging manufacturing contact us to set up load balancing in Lumi to prepare for any further shut downs.

Over 99% of factories across the US are still operating at full capacity, however there is still uncertainty about further shutdowns. 

China manufacturing

  • Factories continue to make their gradual recovery with 1-2 week delays still common.
  • Air freight shortage has persisted, so we recommend ocean freight whenever possible.