International shipping and logistics market (updated week 48/2021)

Update the international shipping and logistics market for the week of 48/2021

1. Asia - North America route

Demand remains strong ahead of the Lunar New Year amid limited capacity on the Asia-North America route.

Around 15% of capacity in December could be considered underutilized due to delays related to congestion, schedule slippage and schedule restoration measures from shipping lines.

Fewer seats and continued demand are putting pressure on the market and will provide an impetus for higher rates.

Congestion at the ports of Los Angeles/Long beach and Savannah remains severe. Meanwhile, recent weather events pose additional challenges in Vancouver.

Rates Some shipping lines have implemented GRI for early December.

- Freight rates (Ocean Freight): Some shipping lines have applied a general rate increase surcharge (GRI) since the beginning of December. Rates are still increasing and the demand for premium services is still very strong.

- Ocean Freight: Some shipping lines have applied a General Rate Increase surcharge (GRI) since the beginning of December. Rates are still increasing and the demand for premium services is still very 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: Some shipping lines slightly increased freight rates in December. All shipping lines maintain the rates for premium services.

- 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: The general increase in price (GRI) surcharge is fully applied by shipping lines for both dry and refrigerated cargo in November. In December, GRI is likely to be deployed for ports of destination in India and Australia. 

- 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!

Read more:

• COSCO signs agreement to acquire Tianjin Container Terminal
• Container shipping lines report record profits in the third quarter of 2021
• Airport congestion and lack of personnel make causing impossible for goods delivery to places in the US and Europe
• High freight rate forecast affects the recovery of the global economy
• COSCO schedules: Vietnam - North America in December 2021

Source: Phaata.com 

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