International shipping and logistics market - Week 7/2022

International shipping and logistics market update for the week of 7/2022

1. Asia - North America route

Shipping demand is forecast to increase sharply after the Lunar New Year despite some uncertainties related to Covid. Factories began to return to resume production.

Inventories in the US remain low and booster ships are expected to continue to be brought in as space availability remains tight. Many retailers are working to replenish their inventory before the annual peak season in late summer.

Severe congestion, backlogs of goods awaiting export and high freight rates all suggest that there is no way to recover from current tensions.

Shipping lines encourage booking reservations to the East Coast due to severe congestion at the West Coast ports of Los Angeles and Long Beach.

Industry experts are still uncertain about the timelines and signs the market is expected to return to pre-Covid normal.

Shipping lines and ports are also bracing for potential disruptions as existing labor contracts with the International Longshore and Warehouse Union (ILWU) expire in June. this.

- Freight rates: High freight rates and demand for bookings with guaranteed "premium" services increased sharply.

- Space: Lack of seriousness

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

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

2. Asia - Europe route:

The volume of goods is only gradually recovering in the period after the Lunar New Year. However, container space and equipment continues to be in short supply due to delays in many vessels ahead of the Lunar New Year, and due to the large number of blank vessels coming in the weeks 8, 9 and 10. The sailings are blanked as planned, but there are also blank sailings due to schedule delays.

The reliability of the schedule is very low and there are still many sailings that have shifted their schedules from the Lunar New Year period. New bookings are expected to be received in one to two weeks.

- Freight rates:  The freight rate is still high after the Lunar New Year and extended to the end of February.

- Space: Serious shortage

- Container equipment: 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. Capacity on the US East Coast has been improved.

The situation in East Coast ports shows that Port of Savannah operations are improving but delays are increasing in surrounding areas such as the Port of Charleston and the Port of New York.

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

- Ocean Freight: GRI was introduced in early February for transshipment ports as well as ports of destination in 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:

• Rising freight rates help HMM reach a profit of $4.4 billion in 2021
• 2M Alliance ends slot swap agreement with SM Line on transpacific service
• Maersk acquires Pilot Freight Services for $1.7 billion

Source: Phaata.com 

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