International shipping and logistics market - Week 8/2022

International shipping and logistics market update for the week of 8/2022

1. Asia - North America route

Schedule delays seriously remain for the Asia-North America services. Industry experts predict a return to pre-Covid normal will take another few months to a year. 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 are making efforts to transport backlogged goods before or during the Lunar New Year at many export ports. The assurance services market remains strong and space for standard services remains scarce relative to demand.

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.

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

Shipping lines and ports are also bracing for potential disruptions as existing labor contracts with the International Federation of Warehouses and Laborers of America (ILWU) expire in June.

- 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. The number of bookings on the Asia-North Europe route is increasing.

Container space and equipment continues to be in short supply due to delays in many sailings ahead of the Lunar New Year, and due to the large number of blank sailings coming up in weeks 8, 9 and 10. These aren't just sailings that have been delayed. 

The reliability of the schedule is very low with many sailings being missed and sailing schedules changed.

- Freight rates:  Rates remain high after the Lunar New Year and will be extended until the end of February. The rates in March are expected to be officially announced by shipping lines in the next few days.

- 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 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 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 ship'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. Shipping lines have barely announced GRI in March.

- 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.

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Phaata wishes you successful business!

Read more:

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• Freight forwarders expand to receive SOC in the face of global container shortage
• A cyber attack hits a leading container terminal in Nhava Sheva (India)
• Fire aboard Felicity Ace estimated at least $155 million in cargo damage
• Congestion at Asian ports increases

Source: Phaata.com 

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