International shipping and logistics market - Week 15/2022

International shipping and logistics market update for the week of 15/2022

1. Asia - North America route

The number of Covid-19 infections that broke out in southern China put a lot of pressure on shipping lines and importers as Shanghai remained under lockdown for the third week.

Ocean carriers continue to assess the impact on bookings, with many looking for alternatives from Southeast Asian countries due to current restrictions and a sharp drop in cargo from China.

Inventory replenishment efforts remain important and necessary for many importers and retailers ahead of the traditional peak season.

Severe congestion, equipment imbalances, schedule slippage, port abandonment, flight cancellations and increased fuel fees continue to create challenges.

- Freight rates: Freight rates are on a downward trend. However, demand for bookings with "premium" services remains strong.

- Space: Lack of seriousness

- Empty container equipment: There is a serious lack of equipment.

Recommendation: Shippers should continue to book at least 3-4 weeks before estimated time of departure (ETD) for the best chance; Consider switching from a standard service to a "premium" guaranteed service. Monitor and check closely with suppliers to capture any Covid-19 related impacts or changes on their production and forecasts quickly to adjust accordingly fast.

Freight rates Asia-North America | Week 15/22 (Image: Phaata.com)

2. Asia - Europe route:

Shanghai remains under lockdown although it is expected that the blockade will be lifted in some areas.

Other cities in East and North China are also facing increased COVID cases. This is affecting the plant's production, warehousing and trucking capabilities, although ports and trucking continue to be fully operational.

Spaces are available for regular FAK bookings for all shipping lines. However, carriers have not yet opened for bookings under long-term contracts.

It is expected that there will be some port skipping and empty ships announced by carriers as a response to recent developments.

- Freight rates: Freight rates are still high but tended to decrease in March and continued into April due to market slowdown.

- Space: Shortage

- Empty container equipment: Shortage in all Asian countries.

Recommendation: Shippers should make reservations at least 2-3 weeks before estimated time of departure (ETD). Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

Freight rates Asia-Europe | Week 15/22 (Image: Phaata.com)

3. North America - Asia route:

Incoming vessel numbers and available capacity remained stable for US West Coast ports. Port capacity on the East Coast of the United States has improved.

The situation in East Coast ports indicates improved Port Savannah operations. However, delays and congestion are increasing in surrounding areas such as Charleston and New York.

The integrity of the schedule is impaired. There are many blanked sailings and delays, which are creating great challenges with the ship's arrival and departure dates already announced.

- Ocean freight: Shipping lines have announced limited GRI levels announced for implementation in late April and early May.

- Space: Stable for West Coast ports, and has improved in US East Coast ports.

- Empty 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 weeks or more before estimated time of departure (ETD).

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Phaata wishes you successful business!

Read more:

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• European Union's ports ban Russian ships
• 2M Alliance restores Felixstowe port call on AE7 service

Source: Phaata.com 

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