International shipping and logistics market update - Week 44/2022

International shipping and logistics market update (Photo: Phaata)

1. Asia - North America route

Freight rates on the Asia-North America route have fallen and seem to be nearing the level of tolerance for shipping lines. Therefore, many shipping lines have recently announced the Peak Season Surcharge (PSS) and General Rate Increase (GRI) in December.

For Canada, the market conditions and rates are similar to those in the United States. The ports of Vancouver and Prince Rupert have both seen declines in vessel numbers and berthing delays. However, the backlog for railways has improved compared to last week.

- Freight rates: After a long period of continuous decline, freight rates from Asia to the West Coast of North America this week increased slightly by 0.14% compared to the previous week, to $ 2,087/ FEU. This rate is down 37.02% month over month, according to Xeneta data.

- Space: Generally available, despite the impact of blanked sailings and delays.

- Equipment: Improved

Recommendation: Bookings should be booked at least 2 weeks in advance of the scheduled departure date (ETD). Shippers note flexibility in planning their shipping when upcoming congestion and delays are expected.

Freight rate Asia- US West Coast | Week 44/22 (Image: Phaata.com)

2. Asia - Europe route:

After Golden Week, factories are back up and demand is recovering. Demand has recovered after Golden Week but is still slow. Seats are available but the reliability of the schedule is affected. Port congestion in Europe continues to cause delays and delays for many ships returning to Asia.

- Freight rates: Freight rates continue to trend down sharply due to low demand. Freight rates from Asia to Northern Europe this week continued to plummet to $4,293/FEU, down 11.70% from last week and down 34.51% from last month, according to Xeneta data.

- Space: Generally available, despite the impact of blanked sailings and vessel delays.

- Container equipment: Most are available.

Recommendation: Shippers should take note of flexibility in their shipping planning when upcoming congestion and delays are expected.

Freight rate Asia-Europe | Week 44/22 (Image: Phaata.com)

3. North America - Asia route:

Ports on the US East Coast continue to be challenged with vessel congestion in Savannah and New York. Erratic sailing schedules continue to pose major challenges.

For ports in US West Coast, spaces at the Port of Los Angeles is available steadily; Ports of Oakland and Seattle also improved.

- Freight rate: No GRI announced for October and November. Freight rates from North America to Asia this week decreased by 3.36% compared to last week, to 1,064 USD/FEU. This price decreased by 7.40% 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 making it difficult for goods to be transported from within the US, especially at major ports. Chicago remains the most reliable intermodal inland port (IPI) location. Kansas City and Memphis are seeing congestion related to container and trailer equipment challenges.

Recommendation: Shippers make reservations at least 4 weeks or more before estimated time of departure (ETD). For ready-made goods, importers may consider taking advantage of the available space and better spot market rates.

Freight rate US West Coast - Asia | Week 44/22 (Image: Phaata.com)

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Source: Phaata.com 

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