Customer circular – SIS Seafreight

Dear Ladies and Gentlemen,

Please find below our latest market update on the most important developments in the ocean freight sector.

Current Trends in Ocean Freight Rates for the Far East and India

Ocean freight rates remain at high levels. The current increase is primarily due to heightened demand resulting from
shipments brought forward by major European and American shippers (BCOs). Volume forecasts from some major
shippers remain approximately 30–40% above normal levels through the end of July. One factor behind this is the
adjustment to the quarterly bunker adjustment factor (BAF) effective July 1, which prompted numerous companies to
bring forward their shipments. Geopolitical tensions in the Middle East and the resulting rise in fuel costs are also
influencing market developments. These factors are leading not only to higher BAF surcharges but also to persistently
high demand for transport capacity available on short notice. At the same time, available supply is constrained by slow
steaming, capacity controls by shipping lines, limited cargo space availability, and ongoing port congestion. The
combination of high demand and reduced supply continues to exert significant upward pressure on freight rates.

Vessel Space and Equipment Availability

The availability of vessel space and equipment remains tight. In addition to various regions in Asia, the situation is also
increasingly worsening in India and neighboring countries. As a result, last-minute bookings are only possible to a limited
extent in many places. Furthermore, the global port congestion situation has recently worsened significantly. Particularly
in Northeast Asia and Northwest Europe, port congestion is leading to extended wait times, reduced schedule reliability,
and a further reduction in effectively available transport capacity. We therefore recommend that you continue to plan
shipments well in advance. For particularly time-sensitive shipments, please notify us early so that we can work together
to coordinate the best possible transport solution.

Ongoing Port Congestion in Northern Europe

The situation at seaports in Northern Europe remains tense. In addition to existing backlogs, last week’s heat wave has
further hampered cargo handling. In several port areas, high temperatures led to occupational safety-related
restrictions—ranging from reduced working hours to the temporary suspension of port operations in certain areas. As a
result, existing delays have worsened further. The ongoing congestion continues to lead to extended vessel lay times,
delays in container handling, and reduced schedule reliability for many liner services.

New Toll Regulations in Europe

A truck toll was introduced in the Netherlands effective July 1, 2026. At the same time, toll rates in Belgium were also
adjusted effective July 1, 2026. The resulting additional costs for pre- and post-carriage are considered in our quotes and
factored into the base rate.

Restrictions in Inland Waterway Transport

Persistently low water levels on major inland waterways continue to cause significant restrictions in barge traffic.
Reduced unloading depths and occasional trip cancellations are noticeably impacting operations. The resulting shift to
rail and truck transport is leading to additional demand and limited capacity availability along the entire transport chain.
This puts strain on the entire transport chain and may affect transit times as well as the availability of transport solutions.

We recommend planning and booking your shipments as early as possible to ensure the best possible availability of
capacity. Please feel free to contact us at any time if you have any questions or need customized shipping solutions.

Best regards,