International shipping and logistics market (updated week 36/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 36/2021.

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Update the international shipping and logistics market for the week of 36/2021 (Image: Phaata)

1. Shipping route: Asia - North America

Transport capacity on the Asia-North America route is severely short of demand during the peak season. Shippers and importers seek to pay all-time high prices to get goods shipped as soon as possible. Workforce stresses, severe port congestion and disruptions related to the Covid-19 epidemic are expected to put additional pressure on capacity as the market enters the fall and winter.

Strong demand is forecasted to last until the Lunar New Year 2022.

- Ocean Freight: The General Rate Increase (GRI) surcharge was introduced September 1, and will continue to apply on September 15.
- Space: Lack of seriousness
- Empty container equipment: There is a serious lack of equipment.

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 modes.

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. Shipping lines have been taking too many bookings before and are limiting bookings to new requests.

The situation was made worse by canceled sailings and shortages of container equipment. Many shipments had to be dropped and could not be exported. The reliability of the schedule is quite low.

- Ocean Freight: Still at a record high and stable in September. However, rates could rise further due to the possibility of sailing cancellations during Golden Week in China coming.

- 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 scheduled train runs. Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

3. Shipping route: North America - Asia

The US West Coast continues to experience delays at all ports. With increasing port congestion at the Port of Los Angeles, vessel schedules will be severely impacted in the coming weeks.

However, capacity has improved for service from the US East Coast to Asia.

- Ocean Freight: Shipping lines have announced the application of a general rate increase surcharge (GRI) from September 15 and October 1.

- Space: Space is extremely scarce for West Coast ports, but has improved in US East Coast ports.

- Container equipment: The shortage of container equipment is still causing difficulties for goods transported from within the US, especially at major ports.

Recommendation: Shippers make reservations at least 4-6 weeks before ETD.