International shipping and logistics market update - Week 39/2022

International shipping and logistics market update (Photo: Phaata)

1. Asia - North America route

Demand dropped on the route of Asia-North America before Golden Week in China. The reduced demand for shipping caused the freight rates to continue to fall this week. It is expected that the capacity in the market will be reduced by shipping lines in the near future.

The number of blanked sailings continued to dominate the market in October as carriers sought to reduce the total number of vessels moored at ports, especially the US East Coast (USEC) Savannah port and Houston port is located in the US Gulf (USGC). Congestion at US ports remains under control.

The Port of Vancouver on the West Coast  of Canada is  operating at near full capacity and is causing delays for ships entering the port of Vancouver. Port and road traffic congestion has been ongoing for weeks but has generally decreased from the peak this past summer.

Despite better rates, the rate of blanked sailings, port congestion, and delays between shipping modes in the US continue to affect schedule reliability.

- Freight rates: Freight rates continue to trend down. Freight rates from Asia to the West Coast of North America this week decreased by 3.65% compared to the previous week, to $3,454/FEU. This rate down 39.80% from last month, according to Xeneta data.

- Space: Most are available

- Equipment: Improved

Recommendation: Shippers should continue to make reservations at least 2 weeks before estimated time of departure (ETD) for the best chance. For ready-made goods, importers may consider taking advantage of the available space and the plummeting spot market prices.

Freight rate Asia- US West Coast | Week 39/22 (Image: Phaata.com)

2. Asia - Europe route:

Without the rush to peak season before Golden Week as usual, demand has slowed. The shipping capacity in the market is still relatively tight due to the large number of blanked sailings, slided schedules and omitted ports.

Port congestion in Europe, especially Hamburg and Rotterdam, has reached a critical level causing further delays and delaying the return of ships to Asia. Various voyages are having to skip calls at Hamburg and divert to alternative ports.

In general, the market remained relatively stable without a big spike in output. There are still many uncertainties at the macro level such as the Ukraine conflict, high inflation across Europe, and falling consumer confidence.

- Freight rates: Freight rates continue to trend down. Freight rates from Asia to Northern Europe this week continued to drop to 6,750 USD/FEU, down 3.81% from last week and down 23.97% from last month, according to Xeneta data.

- Space: The space is starting to fill up again.

- Container equipment: Improved but still lacking in many Asian countries.

Recommendation: Shippers should make reservations at least 2 weeks before before estimated time of departure (ETD). Consider choosing a premium service and have the flexibility to choose replacement equipment when needed. Be flexible when planning shipments with anticipated congestion and delays.

Freight rate Asia-Europe | Week 39/22 (Image: Phaata.com)

3. North America - Asia route:

Ports in the East Coast region (USEC) continue to see challenges with vessel congestion and some shipping lines have dropped out of Charleston and Savannah ports.

Several shipping lines have announced that rail freight operations from Chicago across the West Coast have been improved and expanded to increase volume.

Erratic sailing schedules continue to pose major challenges.

For US West Coast ports (USWC), vessel arrivals and available capacity remained stable.

Possible strike action on rail lines this week has resulted in ocean carriers being prepared to immediately stop accepting dangerous and refrigerated goods when requested by rail companies. bridge.

- Freight rate: No GRI announced for October. Freight rates from North America to Asia this week increased by 3.69% from last week to 1,151 USD/FEU . This price increased by  0.96% compared to the previous month.

- 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).

Freight rate US West Coast - Asia | Week 39/22 (Image: Phaata.com)

Find Freight rates here.
 
Find Logistics Companies here.
 

Read more:

• Port of Melbourne sharply increased container throughput in August
• Workers at Port of Felixstowe start new round of strikes
• Container shipping line MSC enters air freight market
• COSCO schedules: Vietnam - North America in Oct 2022

Source: Phaata.com 

Phaata.com - Vietnam's First Global Logistics Marketplace

► Find better Freight rates & Logistics services!