Q2: Building Momentum and Managing Growth
The second quarter signals a steady rebound in global shipping volumes. As businesses prepare for spring and summer retail seasons, demand grows for consumer goods, agricultural products, and promotional materials. With production levels stabilized and ports operating more efficiently, this period emphasizes proactive space booking, monitoring of fuel and reefer trends, and maintaining operational flexibility to handle the seasonal uptick in trade. This phase of the year allows logistics teams to capitalize on consistent demand growth while laying the groundwork for the pressures of peak season ahead.
April: Spring Ramp Up: Capacity Securing and Route Optimization
Strategic Focus:
As shipping volumes rise in April, the focus shifts to securing container space early and optimizing transportation routes for speed and efficiency. To stay ahead of increased demand and prevent bottlenecks, logistics teams should proactively lock in capacity and plan ahead. Strong coordination with carriers and port authorities, combined with smart multimodal strategies, can help ensure reliable delivery and cost control as global trade gains momentum in Q2.
Key Considerations:
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Proactive capacity planning.
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Efficient route management.
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Monitoring fuel costs and market fluctuations.
Key Trade Trends:
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Full production resumes in Asia: Factories are running at full capacity after the slow restart in March, fueling export activity, especially in consumer goods and electronics.
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Spring retail campaigns: Increased movement of goods tied to spring promotions and holidays like Easter (Europe/US) and Golden Week planning (Japan).
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Agriculture exports peak: High volume of reefer container use for perishables: citrus fruits from the Mediterranean, berries from North & South America, and seafood.
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Balanced global flows: Trade lanes begin to stabilize in both eastbound and westbound directions.
Rate Trends:
>> Moderate rate increases: Rates continue their upward trend due to higher volumes, but the pace is steadier than in peak season months.
>> Reefer surcharges: Additional fees may apply on reefer shipments due to tight equipment availability.
>> Bunker Adjustment Factors (BAFs): April often sees adjustments to fuel-related charges, especially when oil prices fluctuate.
May: Pre Summer Shipping Peak
Strategic Focus:
May serves as a pivotal month for both reflection and forward planning. As the midpoint of the year, it's an ideal time to review performance against Q1 and Q2 goals, identify operational bottlenecks, and recalibrate strategies where needed. This mid year evaluation helps realign priorities before the high pressure months of Q3 and Q4 begin. Concurrently, May is also a launchpad for peak season preparation. It’s essential to secure shipping capacity early, optimize routes, and continue to deepen relationships with carriers and partners.
Key Considerations:
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Capacity planning for high demand goods.
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Port congestion monitoring.
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Begin forecasting for the peak seasons.
Key Trade Trends:
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Seasonal stockpiling begins: Retailers and brands begin importing summer goods such as outdoor furniture, sports equipment, air conditioners, summer fashion.
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Automotive shipments rise: Especially in Asia–Europe routes, driven by mid year car production schedules and part exports.
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Pre holiday buffer shipments: Early inventory buildup begins for markets with major holidays in June or early July (e.g., Eid al-Adha, Independence Days).
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E-commerce scaling up: Online retailers begin preparing fulfillment centers for summer sales and "Prime style events" (large online retail sales events).
Rate Trends:
>> Rate tightening: Spot rates begin to climb more noticeably, especially on Asia–US West Coast and Asia–Europe lanes.
>> General Rate Increases (GRIs): Carriers typically announce GRIs to capitalize on seasonal demand.
>> Port congestion risk returns: Higher container volumes in key hubs (e.g., Shanghai, Rotterdam, Long Beach) can lead to slower turnarounds and rising dwell times.
June: Summer Kickoff: Volume Management and Transit Planning
Strategic Focus:
June is a critical transition point into the high demand months of Q3, and it calls for a proactive, anticipatory approach. Shippers must fine tune their logistics strategies to mitigate potential risks from increased volumes, limited capacity, and heightened customer expectations. Strengthening visibility through enhanced tracking systems and clear customer communication ensures smoother delivery coordination. June is also the time to solidify reefer capacity for perishable shipments and review contingency plans for the looming peak season. By staying ahead of disruptions and reinforcing customer service protocols, logistics teams can position themselves to perform effectively under pressure in the months ahead.
Key Considerations:
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Peak season preparation.
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Tracking and visibility enhancements.
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Customer service and communication.
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Risk assessment and mitigation.
Key Trade Trends:
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Summer product imports peak: Consumer goods like swimwear, camping gear, cooling appliances, and beverages are at their highest inbound volumes, particularly into the U.S. and Europe.
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Promotional and seasonal packaging: High movement of promotional goods and limited-edition summer packaging from Asia to Western markets.
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Tightening on reefer containers: Strong competition for refrigerated containers as perishable goods exports (e.g., fruits from Chile, South Africa) continue.
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Inventory padding: Many retailers and distributors build buffer stocks in anticipation of Q3 rate increases and longer lead times.
Rate Trends:
>> Upward momentum builds: Spot rates continue to rise, reflecting tightening space and stronger contract bookings.
>> Fuel surcharge updates: Seasonal shifts in fuel consumption (especially for reefers and air freight) lead to fuel surcharge adjustments.
>> Advance booking required: Many trade lanes see carriers booking out a few weeks in advance to secure space.
As Q2 wraps up, global logistics enters the next phase: the onset of peak season. With demand intensifying and space tightening across major trade lanes, Q3 brings sharper rate shifts, inventory pressure, and the need for real time agility. In Part 3, we’ll explore how to navigate the challenges and opportunities of July to September.
