International shipping and logistics market (updated week 42/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 42/2021.

container-freight-rates

Update the international shipping and logistics market for the week of 42/2021

1. Asia - North America route

Tensions on the Asia-North America route are easing as demand for seats with premium service shows signs of slowing down. Whether freight rates will continue to move sideways, fall further or even rise remains unclear.

Shipping lines have indicated that demand remains strong through the end of the year. This is in line with economists' predictions, showing strong demand forecasts until inventories replenish.

Port congestion is expected to remain severe and protracted. This causes carriers to consider allowing ships to call smaller ports in the US.

- Ocean Freight: The freight rates of some carriers have extended or reduced rates in the second half of October, but the freight rates are still high.

- 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:

Container space and equipment are still in short supply. Market demand has consistently outstripped supply, and freight rates have been skyrocketing for quite some time.

The seating situation was made worse by many train cancellations and lack of equipment. The shipping lines have received too many bookings in the past and are restricting the acceptance of new bookings.

With many ships being delayed and many shipments being changed, the reliability of the current schedule is very low.

Power shortages are affecting factory production to a certain extent and causing more changes in transportation plans.

- Ocean Freight: Although freight rates were still at a record high, they were stable in October. Most shipping lines have extended the application of the premium fee.

- 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:

The US West Coast continues to experience delays at all ports. With increasing port congestion at the Port of Los Angeles, vessel schedules will be severely impacted in the coming weeks.

Transport capacity has been improved for service from the US East Coast to Asia. However, as port congestion continues to increase, there is concern about blank sailings occurring due to prolonged schedule delays.

- Ocean Freight: Shipping lines are expected to apply a general rate increase (GRI) surcharge on November 1 for both dry and refrigerated cargo.

- 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.