International shipping and logistics market

International logistics and container shipping market on Asia, Europe and North America routes in the week of 9/2022.

container-freight-rates

International shipping and logistics market update for the week of 9/2022

1. Asia - North America route

Freight rates remain high and space remains short on the Asia-North America route. Containers are shipped primarily with a "premium" service. The standard service bookings are offered limitedly by shipping lines due to the lack of spaces.

Congestion is expected to continue to worsen, due to volatile markets and global uncertainties. Schedule delays remain severe for the Asia-North America service. Industry experts predict a return to pre-Covid normal will take a few more 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.

Rising fuel prices and trade disruptions related to the conflict in Eastern Europe are important issues to watch out for.

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:

Rising fuel prices and trade disruptions related to the conflict in Eastern Europe are important issues to watch out for.

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.

Space and container equipment continue to be in short supply due to delays in many sailings before the Lunar New Year, and due to the large number of canceled 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: Freight rates have been extended or reduced slightly in the first half of March.

- 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.