To Our Valued Clients,

As we begin a new month, it is evident that the industry is not slowing down. The unprecedented amount of freight being moved has stressed the global supply chain. While some areas are improving, such as the Ports of Los Angeles-Long Beach decreased waiting vessels to under 20, the improvement is likely temporary.

The increase in demand combined with the blockage of the Suez Canal has created a lull where rates stabilized for a few weeks, but we are on the brink of another surge in freight. Carriers have announced 30 blanked sailings in May, forcing most capacity to be filled for the month and June is quickly filling up. Rates and carrier premiums are at an all-time high and we are still seeing freight not loaded in Southeast Asia.

Delays on the West Coast are expected to increase again as the next wave in the surge of cargo reaches North America. Other ports will continue to feel the effects of the surge as carriers move sailings to try to avoid congestion. Inland ramps and rail depots continue to also struggle with the congestion as trains that once arrived with 30-40 cars arrive with over 200. Chassis shortages persist. Truck capacity continues to be tight.

Carriers are expected to continue to limit IPI freight, so equipment shortages will still be problematic for exporters. If equipment is secured, limited free days will be given and utilizing alternate ports will still be the reality for the near future. We believe these conditions will persist at least through June.

As your logistics provider, I appreciate the trust you place in us for your supply chain needs during this trying time. We understand that delays have a ripple effect not only on your supply chain, but that of the world. Our teams are working diligently to proactively secure bookings, equipment, and space for your cargo for all modes of transportation. We will continue to provide periodic updates on the global logistics landscape to keep you informed of industry conditions.

Our commitment to serving your needs remains unchanged, and we are working with our employees to ensure your cargo moves. If you have any questions or concerns, please reach out us.

Peter Weinberger

President

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