FlexSack Customers,
We are issuing an urgent supply chain update regarding a significant deterioration in ocean freight conditions for India-origin shipments to the United States. Over the past several weeks, ocean carriers have aggressively reduced capacity serving the India–North America trade lane. Based on information received directly from our international forwarding partners, available weekly capacity from India has declined substantially since June, with additional reductions occurring in recent weeks through blank sailings.
Several major carriers have suspended, consolidated, or modified services, reduced vessel capacity, or significantly restricted available space. At the same time, geopolitical disruptions, peak-season demand, and continued changes to global carrier networks are placing additional pressure on an already constrained market.
The result is an extremely difficult ocean freight environment characterized by:
- Severely restricted vessel space from India to the United States
- Increasing blank sailings and service consolidation
- Containers being rolled to later vessels despite advanced booking requests
- Longer and increasingly unpredictable shipping schedules
- Significant freight rate increases and surcharges
- Spot-market pricing with very limited rate validity
- Cancellations even after container bookings have been received
Our forwarders have advised us to book shipments as far in advance as possible and expect these conditions to remain through the end of September. Based on what we are experiencing in the market, however, we do not believe customers should assume conditions will normalize immediately thereafter.
CUSTOMER ACTION – CONTINGENCY PLANNING
At this time, our primary concern is no longer freight cost alone. It is continuity of supply. As a result, we strongly encourage customers to immediately review their current inventory position and establish a contingency plan.
Specifically, please determine:
- Your current on-hand and in-process inventory levels against average weekly/monthly consumption
- Your “drop-dead” date by which additional product must physically arrive to avoid any interruption in operations.
- Whether alternate FlexSack stock items or similar bag specifications could temporarily be used if your primary item becomes unavailable.
- Whether additional inventory levels should be secured now rather than waiting for normal reorder points.
Please communicate any potential supply gap to your FlexSack representative as soon as possible. We can then review available warehouse inventory, alternate specifications, production status, and other contingency options with you.
FREIGHT PRICING & DELIVERY SCHEDULES
Ocean freight pricing from India is currently extremely volatile. In many cases, carriers are providing only short-term spot quotations, with pricing and space subject to change until the shipment is accepted and confirmed by the carrier.
Accordingly, previously quoted or acknowledged pricing that includes ocean freight may be subject to amendment where actual freight costs materially change due to carrier-imposed increases, surcharges, capacity restrictions, governmental actions, force majeure events, or other extraordinary conditions outside FlexSack’s reasonable control.
Likewise, estimated ship dates, vessel departures, transit times, and delivery dates should not currently be considered guaranteed. A completed order at the manufacturing facility does not necessarily mean vessel space will be immediately available.
FlexSack and our forwarding partners are actively pursuing bookings across available carriers and attempting to secure space as early as possible. We will continue to communicate changes as they occur and will work individually with customers where inventory coverage becomes critical.
We have managed through COVID-era disruptions, the 2021–2022 global container shortage, Red Sea disruptions, port congestion, tariff changes, and numerous carrier GRIs. The current India-to-U.S. capacity situation is among the most severe and unpredictable ocean freight environments we have experienced. For that reason, we believe the appropriate response is proactive contingency planning rather than relying upon historical lead times or projected vessel schedules.
We appreciate your understanding and will continue providing updates as conditions develop.
FlexSack
ABC Polymer Industries