International shipping and logistics market (updated week 38/2021)

Update the international shipping and logistics market for the week of 38/2021 (Image: Phaata)

1. Shipping route: Asia - North America
 

Congestion returns to peak severity as seen in the Los Angeles/Long Beach port area, where more than 70 or more container ships are moored, waiting to dock.

Shippers and importers continue to pay historically high prices to get their goods shipped urgently, in time for the holiday season.

Labor strains, blanked sailings and Covid-19-related supply disruptions are expected to continue to put further pressure on capacity in the coming months.

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

- Ocean Freight: The General Rate Increase (GRI) surcharge was applied by shipping lines 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
 

Space and empty 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 space situation was made worse by many blanked sailings and lack of container equipment. Shipping lines have received too many bookings and are limiting new bookings.

Many shipments had to be dropped and could not be exported. Many sailings are constantly delayed and the reliability of the schedule is still very low.

There is some discussion by shipping lines about stopping the spot rate increase, but it is not yet clear what the outcome of this will be.

- 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.

Transport capacity has been improved for service from the US East Coast to Asia. However, as port congestion continues to increase, there is concern about blank sailings occurring due to prolonged schedule delays.

- Ocean Freight: Shipping lines have applied the general rate increase (GRI) surcharge from September 15 and is expected to continue to apply on October 1 for both dry and refrigerated cargo.

- 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.

Find Freight rates here.
 
Find Logistics Companies here.
 

Phaata wishes you successful business!

Read more:

• Time of container ships staying at ports increased by 11% in the first half of 2021

• No signs of improving port congestion in the US, fearing that it will last until the end of 2022
• International shipping and logistics market (updated week 37/2021)

Source: Phaata.com

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