International shipping and logistics market update - Week 1/2023

International logistics and container shipping market update on Asia, Europe and North America routes in the week of 1/2023.

Shipping & Logistics Market Update - Phaata

International shipping and logistics market update (Photo: Phaata)

1. Asia - North America route

Transport demand on the Asia-North America route remains weak. Ocean freight rates on the Asia-North America route continued the downward trend to pre-pandemic levels. Spot rates on the East Coast route continued to drop sharply, while the West Coast rates became more stable. Many shipping lines announced blanked sailings during the Lunar New Year period and Q1 2023.

Rates on routes from Asia to major US East Coast and Gulf ports continue to fall. Carriers expect more blanked sailings in the first quarter of 2023, most notably from Vietnam. The goal is to limit excess capacity and continue to improve schedule reliability.

- Freight rates: Rates from Asia to the North American West Coast in the first week of 2023 fell to $1,472/FEU, or 2.52% less than last week and down 9.25% month-on-month, according to Xeneta data.

- Space: Generally available, despite the impact of blanked sailings and delays.

- Equipment: Improved

Recommendation: Bookings should be booked at least 2 weeks in advance of the scheduled departure date (ETD). Shippers note flexibility in planning their shipping when upcoming congestion and delays are expected.

Freight rate Asia- US West Coast | Week 1/2023 (Image: Phaata.com)

2. Asia - Europe route:

There has been a positive increase in demand and bookings since week 48, however, cargo volume on the Asia-Europe route is still weak, and freight rates have decreased slightly. Transport demand on the Mediterranean route increased slightly again. Therefore, freight rates increased slightly again.

An increase in the number of train cancellations in the coming period will lead to more scarcity before the Lunar New Year. Freight rates are still under pressure but have not decreased much because the supply and demand situation is more balanced.

- Freight rates: Freight rates from Asia to Northern Europe in the first week of 2023 increased slightly to $ 2,005 / FEU, equivalent to an increase of 1.54% from the previous week and a decrease of 7.32% from the previous month, according to Xeneta data.

- Space: Generally available, despite the impact of blanked sailings and vessel delays.

- Container equipment: Most are available.

Recommendation: Shippers should take note of flexibility in their shipping planning when upcoming congestion and delays are expected.

Freight rate Asia-Europe | Week 1/2023

Freight rate Asia-Europe | Week 1/2023 (Image: Phaata.com)

3. North America - Asia route:

Capacity, congestion and equipment have all improved amid continued decline in market demand, but freight rates have not fluctuated much.

Congestion has improved across most North American container yards due to weak market demand. However, congestion persists in a limited number of areas around the Gulf and Southeast Coast.

Rail performance in several key markets: Chicago, Dallas and Kansas City has also improved.

- Freight rate: Rates are on a slight downward trend. Freight rates from North America (West Coast) to Asia in the first week of 2023 decreased slightly by 0.1% compared to the previous week, to $1,030/FEU. This price decreased by 2.37% compared to the previous month.

- Space: There is no big change in capacity in the market with very few blanked sailings as carriers prepare for the Lunar New Year. Stable for West Coast ports, and has improved in US East Coast ports.

- Empty container equipment: The shortage of container equipment is still making it difficult for goods to be transported from within the US, especially at major ports. Chicago remains the most reliable intermodal inland port (IPI) location. Kansas City and Memphis are seeing congestion related to container and trailer equipment challenges.

Recommendation: Shippers make reservations at least 4 weeks or more before estimated time of departure (ETD). For ready-made goods, importers may consider taking advantage of the available space and better spot market rates.

Freight rate US West Coast - Asia | Week 1/2023