International shipping and logistics market (updated week 44/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 44/2021.

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Update the international shipping and logistics market for the week of 44/2021

1. Asia - North America route

Congestion continues to reduce capacity and cause delays as the number of container ships moored outside the ports of Los Angeles & Long Beach waiting to dock reaches a record close to 80.

The move by ports to charge high congestion fees for containers waiting to receive goods. This shows the severity of the issues affecting the entire supply chain in the weeks leading up to the North American holiday.

Forecasts for Asia-North America rates remain uncertain for the rest of the year as carriers issue strong demand forecasts for the remainder of 2021.

- Ocean Freight: Shipping lines extend freight rates until mid-November. Rates remain high and premium service demand forecast is still very 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: Shipping lines extend freight rates until mid-November. Freight rates remain high level and demand for premium services is still very high. Most shipping lines have extended the application of premium rates. There are a few shipping lines that have adjusted their prices slightly.

- 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:

Arrival vessels and available capacity remained stable for US West Coast ports. Capacity on the East Coast of the United States has improved for the better.

The integrity of the reliability of the schedule is degraded. Many ship blanks and delays present significant challenges for shippers.

- Freight (Ocean Freight): GRI announced by many shipping lines for both dry and refrigerated cargo in November is expected to be implemented.

- Ocean Freight: General rate increase (GRI) surcharge announced by many shipping lines for both dry and refrigerated cargo in November is expected to be implemented.

- 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.