International shipping and logistics market (updated week 49/2021)

Update the international shipping and logistics market for the week of 49/2021

1. Asia - North America route

Demand remains strong ahead of the Lunar New Year amid limited capacity on the Asia-North America route. Spaces are expected to be very tight on the Asia-North America service through the end of 2021 and continue into early 2022 as carriers announce more canceled sailings. Ships to southern California ports are expected to be canceled a lot.

Congestion-related delays, slided schedules, closure of feeder port operations, and Covid-related restrictions all have the effect of reducing capacity.

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 spaces 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.

- Freight rates (Ocean Freight): Some shipping lines have applied a general rate increase (GRI) surcharge 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: Freight rates keep stable at a high level. Most shipping lines have extended their rates to December. The market will soon enter the peak season yearly before the Lunar New Year, so rates are expected to increase in January. 

- 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: In December, the general rate increase (GRI) surcharge was applied to ports of India and Australia. The GRI surcharge for January is expected to apply to select ports of Southeast Asia and Oceania. 

- 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:

• Freight forwarders face anger from shippers
• Los Angeles / Long beach ports postpone the “container dwell fee” for another week
• MSC overtakes Maersk to become the world's largest container shipping line
• Amazon overcomes supply chain disruptions by self-managing container shipping
• Warning about soaring container dwell time for exports at many ports around the world
• China establishes a new state-owned logistics group - China Logistics Group

Source: Phaata.com 

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