International shipping and logistics market - Week 13/2022

International shipping and logistics market update for the week of 13/2022

1. Asia - North America route

Supply chain disruptions, made worse by the outbreak of Covid-19 cases in Shanghai, are impacting shipping lines and causing headaches for shippers and importers.

Ocean carriers continue to assess the impact on bookings and have not yet announced blanked sailings, but it is forecast that changes will be made to bookings.

It remains uncertain as to whether the freight rates drop currently taking place in the market is expected to last, as a lull in demand after the Lunar New Year is the norm. The need for additional inventory remains for importers and retailers.

Severe port congestion, container equipment imbalances, sailing schedule slippage, port omittance, blanked sailings and increased fuel fees continue to create challenges.

Containers are shipped primarily with a "premium" service. However, previously scarce standard service under FAK bookings have also been accepted by some shipping lines due to overcapacity in China due to the Covid-19 outbreak.

- Freight rates: Rates are still increasing and demand for bookings with "premium" services has increased sharply.

- Space: Lack of seriousness

- Empty container equipment: There is a serious lack of equipment.

Recommendation: Shippers should continue to book at least 3-4 weeks before estimated time of departure (ETD) for the best chance; Consider switching from a standard service to a "premium" service. Monitor and check closely with suppliers to capture any Covid-19 related impacts or changes on their production and forecasts quickly to adjust accordingly fast.

2. Asia - Europe route:

The COVID situation in China has somewhat improved but continues to affect business operations. The factory's production in Shenzhen has been partially restored since Monday after some lockdown restrictions were lifted. Dongguan is also expected to have more factories back to normal soon.

Truck shortages due to stringent COVID-19 regulations remain a challenge for some ports. The shipping lines have room for standard FAK bookings at spot rates, but they still limit bookings under long-term contracts.

It is expected that there will be some ports missed by ships on their journey and blanked sailings will be announced by carriers as a response to recent developments.

It is expected that some ports will be skipped and blanked sailings will be announced by carriers as a response to recent developments.

- Freight rates: The freight rates are still high but tended to decrease in March due to slow recovery of cargo volume.

- Space: Shortage

- Empty container equipment: Shortage in all Asian countries.

Recommendation: Shippers should make reservations at least 3-4 weeks before estimated time of departure (ETD). 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. Port capacity on the East Coast of the United States has improved.

The situation in East Coast ports indicates improved Port Savannah operations. However, delays and congestion are increasing in surrounding areas such as Charleston and New York.

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

- Ocean freight: Shipping lines have announced limited GRI levels announced for implementation in late April and early May.

- Space: Stable for West Coast ports, and has improved in US East Coast ports.

- Empty 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 weeks or more before estimated time of departure (ETD).

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Phaata wishes you successful business!

Read more:

• MSC signed an agreement to buy Bolloré Africa Logistics for €5.7 billion
• COMESA Competition Commission in Africa investigates Maersk, CMA CGM and UAFL over freight rate violations
• Concerns about port congestion increased when Shanghai began to be blockade

Source: Phaata.com 

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