International shipping and logistics market (updated week 50/2021)

Update the international shipping and logistics market for the week of 50/2021

1. Asia - North America route

China's pre-Lunar New Year demand remains strong and many blank sailings have been reported. Spaces are expected to be very scarce on the Asia-North America service until the end of 2021 and continue until early 2022. This leads to the possibility of increasing freight rates in the near future.

The recent increase in the number of Covid-19 cases in Zhejiang, China could create additional complications for goods with urgent transportation needs in the region.

Other challenges such as congestion, delays, schedule slide, and early closure of feeder port operations continue to affect the Asia-North America service.

Around 15% of capacity in December could be considered underutilized due to delays related to congestion, schedule slide and schedule restoration measures from shipping lines.

Fewer spaces and continued demand are putting pressure on the market and will provide an impetus for higher rates.

Congestion at the ports of Los Angeles/Long beach and Savannah remains severe. Meanwhile, recent weather events pose additional challenges in Vancouver.

- Freight rates: Ocean freight rates continue to increase due to strong demand before the Lunar New Year. Some shipping lines have applied a general rate increase surcharge (GRI) since the beginning of December. Rates are still increasing and demand for premium services is still very high.

- Ocean Freight: Some shipping lines have applied a General Rate Increase surcharge (GRI) since the beginning of December. Rates are still increasing and the demand for premium services is still very strong.

- 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. Asia - Europe route:

Spaces and container equipments continue to be scarce as market demand continuously exceeds supply. Freight rates have remained very high for a long time.

Spaces and equipments are still very scarce due to frequent blank sailings and port congestions. Shipping lines have received too many bookings and are restricting the acceptance of new bookings.

With delays and constant sailing changes, low schedule and sailings delays before the Lunar New Year will have a big impact on the period after the Lunar New Year.

- Ocean Freight: Rates remain stable at a high level. Most shipping lines have extended their rates to December. As the market is about to enter the peak season before the Lunar New Year, freight rates are expected to increase in January. 

- 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. North America - Asia route:

Incoming vessel numbers and available capacity remained stable for US West Coast ports. Capacity on the US East Coast of the United States has improved.

The integrity of the schedule is impaired. There are many blank sailings and delays, which are creating great challenges with the ship's arrival and departure dates being announced.

- Ocean Freight: In December, GRI was applied to ports of entry in India and Australia. The general rate increase (GRI) surcharge for January is expected to apply to select ports of entry in Southeast Asia and Oceania. 

- 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:

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• Port of Rotterdam sets new tariffs for the next three years
• Air freight rates hit record highs
• Maersk Spot restricts NAC booking, opportunities for small forwarding companies to have more customers
• Forwarders fear and 'don't have no clue' about freight rates next year

Source: Phaata.com 

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