International shipping and logistics market - Week 5/2022

International shipping and logistics market update for the week of 5/2022

1. Asia - North America route

Delays at both ports of arrival and ports of departure are continuing to drive on-time performance and schedule reliability to historic lows.

Container vessels are severely congested at both East and West coast ports. The Port of Charleston became the latest to be severely impacted by congestion.

Besides, congestion and shortage of transport capacity on road at export ports are still serious.

Shippers with goods that need to be shipped urgently, or importers who are in need of replenishing their inventories when they are exhausted, are still willing to pay a high "premium" fee to get spaces.

Labor shortages due to the Covid-19 pandemic and production uncertainty remain in exporting countries. However, demand is expected to remain strong in the coming months for the Asia-North America service.

Although, commodity stress is expected to ease after the Lunar New Year when production will recover at export ports. Overall, demand is expected to remain strong in the coming months for the Asia-North America service.

This week, factories in China, Vietnam... were closed for the Lunar New Year holiday.

- Freight rates: Rising freight rates and increasing demand for bookings with guaranteed "premium" services.

- Space: Lack of seriousness

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

Recommendation: Shippers should continue to make space reservations at least 4-5 weeks before ETD for the best chance; Consider switching from a standard service to a "premium" guaranteed service. Shippers consider choosing to deliver at coastal destinations instead of inland due to connection delays between shipping methods.

2. Asia - Europe route:

Space and container equipment continue to be scarce as market demand continuously exceeds supply, especially during the Lunar New Year period. The situation is further aggravated by the shortage of road transport at export ports.

Space and container equipment is still very scarce due to blank sailings. Shipping lines have received too many bookings and are restricting the acceptance of new bookings.

With delays and constant sailing changes, schedule reliability is very low, and delays for sailings before the Lunar New Year will have a big impact on the period after the Lunar New Year.

- Freight rates: Rates remain high and increase slightly during the Lunar New Year, the end of January.

- Space: Lack of seriousness

- Container equipment: There is a serious shortage in all Asian countries.

Recommendation: Shippers should make space reservations at least 3-4 weeks before ETD. Consider choosing a guaranteed "premium" service and have the flexibility to choose replacement equipment when needed.

3. North America - Asia route:

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

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

This week, many factories in China, Vietnam... have begun to close for the Lunar New Year holiday.

- Ocean Freight: There have been several announcements about GRI likely to be introduced in early February for transshipment ports as well as ports of destination in Oceania.

- Space: Scarcity for West Coast ports, but 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 the ETD.

Find Freight rates here.
 
Find Logistics Companies here.
 

Phaata wishes you successful business!

Read more:

• Capacity of non-alliance carriers increased sharply on trans-Pacific services
• Hapag-Lloyd's profits increase sevenfold in 2021
• Global supply chain bottlenecks due to lack of containers still remain

Source: Phaata.com 

Phaata.com - Vietnam's First Global Logistics Marketplace

► Find better Freight rates & Logistics services