International shipping and logistics market (updated week 31/2021)

Update the international shipping and logistics market for the week of 31/2021 (Photo: Phaata)

1. Shipping route: Asia → North America
 

There is still a serious shortage of capacity on the Asia-North America service even though the number of existing vessels has been fully utilized by carriers.

Carriers' capacity to service will become further constrained as demand increases ahead of the year-end holiday season and severe congestion occurs in both central and coastal ports. It is forecasted that shipping lines will impose port congestion charges and fees incurred due to strong demand, and limit bookings for intermodal transport services.

- Ocean Freight: Aug 1 General Rate Increase (GRI) surcharge has been applied, is expected to continue to apply on August 15. In addition, the peak season surcharge ( PSS) September 1 is also expected to apply.

- Space: Lack of seriousness

- Empty container equipment: Serious lack

Recommendation: Shippers should continue to book at least 4-6 weeks before ETD for the best chance of guarantee. Shippers consider choosing to deliver at coastal destinations instead of inland due to connection delays between shipping methods.

2. Shipping route: Asia → Europe
 

Empty container space and equipment continues to be in short supply. Market demand outstrips supply, leading to skyrocketing freight rates. The situation was made worse by canceled trains and shortages of container equipment. Many shipments have to be dropped and cannot be exported. The reliability of the schedule is quite low.

- Ocean Freight: At a record high and has increased slightly since August 1. This is also reflected in the continued rise of the SCFI (Shanghai Container Freight Index)

- Space: Lack of seriousness

- Container equipment: There is a serious shortage in all Asian countries.

Recommendation: Shippers should make reservations at least 4-5 weeks before the ETD. Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

3. Shipping route: North America → Asia
 

Sailings delays and cancellations have further reduced capacity. The U.S. West Coast is still heavily affected by this reduction in capacity loss. To cope with the congestion, some shipping lines have reduced the frequency of their calls to Oakland and Seattle in recent weeks.

- Freight rates: Some shipping lines have announced the application of a general price increase surcharge (GRI) in mid-August and early September for all dry goods exported to Asia.

- Shipping space: is scarce on both the West Coast and the East Coast of the United States. However, in the East Coast area is expected to improve further in the second half of July.

- Container equipment: serious shortage in the West Coast region

Recommendation: Shippers make reservations at least 4-5 weeks before ETD.

Find Vietnam freight rates here.
 
Find Vietnam Logistics Company here.
 

Phaata wishes you successful business!

Read more:

• Warning: Book now or it won't be available for sale during the Christmas season
• Congestion begins to increase again at US West Coast ports

Source: Phaata.com

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