International shipping and logistics market update - Week 46/2022

International shipping and logistics market update (Photo: Phaata)

1. Asia - North America route

Sea freight rates on the Asia-North America route continue to decline and are close to pre-pandemic levels.

Although shipping line reliability has increased year over year, port and rail congestion remains at major US gateways. Most notably, in Houston when ships have to wait for 17-20 days at the port and at the port of Los Angeles/Long Beach, many cargo containers have to wait up to 14 days to be loaded on trains for the next transhipment.

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 a decline in vessel numbers and arrival delays, with ships having to wait an average of 29 days at the port of Vancouver. However, the backlog for railways has improved compared to last week. Port operation capacity is from 85%-95% for both major ports on the West Coast of Canada.

- Freight rates: Freight rates from Asia to the West Coast of North America this week decreased slightly by 0.79% compared to the previous week, to $ 1,890 / FEU. This rate is down 22.35% 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 46/2022 (Image: Phaata.com)

2. Asia - Europe route:

Demand remained sluggish throughout the first half of November and rates continued to fall. Seats are available but the reliability of the schedule is affected. Port congestion in Europe continues to cause delays and affect the time  for ships to return 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 $3,118/FEU, down sharply by 17.58% from last week and down 41.26% 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 46/2022 (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: Freight rates from North America to Asia this week decreased slightly by 0.38% compared to the previous week, to $1,057/FEU. This price decreased by 5.12% 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 46/2022 (Image: Phaata.com)

Find Freight rates here.
 
Find Logistics Companies here.
 

Source: Phaata.com 

Phaata.com - Vietnam's First Global Logistics Marketplace

► Find better Freight rates & Logistics services!