International shipping and logistics market (updated week 46/2021)

Update the international shipping and logistics market for the week of 46/2021

1. Asia - North America route

Shipping demand is expected to increase sharply on the Asia-North America route through the end of 2021. Forecasts show shippers who place bookings for shipments that must arrive before the Lunar New Year, in early February.

High demand and reduced capacity are keeping freight rates high. According to some forecasts, freight rates are not expected to return to pre-Covid levels for at least another year.

The high rate level is forecast to last until next year's contract negotiation season - expected to take place earlier than previous years.

Port congestion and vessel shortages, which cause scheduling and capacity problems, remain severe.

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

- Ocean Freight: 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:

• Will shippers consider container vessel chartering as a long-term supply chain strategy?
• It can take 18 to 30 months for freight rates to drop back to normal - Sea-Intelligence
• Container shipping lines increased huge profits in Q3
• Container throughput at China's eight main ports fell 0.6 percent in late October year-on-year

Source: Phaata.com 

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