International shipping and logistics market (updated week 45/2021)

Update the international shipping and logistics market for the week of 45/2021

1. Asia - North America route

The lull following the Golden Week with a slight drop in demand over the past few weeks. Shipping demand before Tet on the Asia-West Coast US route has started to increase again.

Rising demand and falling capacity keep rates high, which is expected to last until next year's contract negotiation season, which is expected to take place earlier than in previous years.

Congestion at the ports of Los Angeles and Long Beach, as well as Savannah, remains severe. Congestion outside the ports of departure is also proving to be a persistent problem, contributing to reliability and scheduling problems, which have slowly become the new normal.

- Ocean Freight: Some shipping lines are likely to apply a general rate increase (GRI) surcharge from mid-November. Rates will still increase and demand for premium services will remain strong.

- 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 are still at a record high, they have stabilized in October as well as entering November. 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.

Find Freight rates here.
 
Find Logistics Companies here.
 

Phaata wishes you successful business!

See more:

• New record: 81 container ships waiting outside the ports of Los Angeles and Long Beach
• CMA CGM acquires FMS terminal in Los Angeles for $2.3 billion
• Container freight rates on the transpacific route have fallen by 50% since September
• Suez Canal increases transit tolls, putting pressure on global supply chains
• CNC Line launches SGS service connecting Singapore and Vietnam

Source: Phaata.com

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