International shipping and logistics market update - Week 28/2022

International logistics and container shipping market update on Asia, Europe and North America routes in the week of 28/2022.

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1. Asia - North America route

Manufacturing and shipping activity in Shanghai is increasing, however whether there will be a real peak season on the Asia-North America service this year remains unclear.

Spot rates continue to trend down in recent weeks and the capacity of the shipping lines is still there. The drop in spot market rates below fixed contract rates continues to attract US importers looking to capitalize on short-term cost savings.

Shipping lines are expected to balance capacity better than before (before the pandemic).

Trailer shortages and inland congestion in the US continue to create difficulties in destinations.

The current shipping time has been much improved compared to the previous year.

- Freight rates: According to Xeneta, freight rates from Asia to the West Coast of North America this week were at $7,373/FEU, a slight increase of 0.88% compared to the previous week, but still down 7.69% last month.

- Space: Most are available

- Empty container equipment: Improved

Recommendation: Shippers should continue to make reservations at least 2 weeks before estimated time of departure (ETD) for the best chance. For ready-made goods, importers may consider taking advantage of the available space and the plummeting spot market prices.

Freight rates Asia- US West Coast | Week 28/22

Freight rates Asia- US West Coast | Week 28/22 (Image: Phaata.com)

2. Asia - Europe route:

After Shanghai reopens, cargo volume on the Asia-Europe route is increasing again but the recovery has not been a sudden spike.

In general, the market remained relatively stable without a big spike in output. There are still many macro uncertainties such as the Ukraine conflict, high inflation across Europe, and falling consumer confidence. Q3 is expected to pick up strongly with a peak in the summer.

Severe congestion at European ports is delaying return trips to Asia, leading to more delays and cancellations.

- Freight rates: Most freight rates are extended at the end of July. Freight rates from Asia to Northern Europe this week increased slightly to USD 10,172/FEU, up 0.38% compared to last week and down 1.48 percent month-over-month, according to Xeneta data.

- Space: The space is starting to fill up again.

- Container equipment: Improved but still lacking in many Asian countries.

Recommendation: Shippers should make reservations at least 2 weeks before before estimated time of departure (ETD). Consider choosing a premium service and have the flexibility to choose replacement equipment when needed. Be flexible when planning shipments with anticipated congestion and delays.

Freight rates Asia-Europe | Week 28/22

Freight rates Asia-Europe | Week 28/22 (Image: Phaata.com)

3. North America - Asia route:

Vessel arrivals and available capacity remained stable for all US West Coast ports.

The East Coast region continues to see challenges with vessel congestion and a number of shipping lines have abandoned services to the ports of Charleston and Savannah.

Several shipping lines have announced that rail freight operations from Chicago across the West Coast have been improved and expanded to increase volume.

Unstable sailing schedules continue to pose major challenges.

- Ocean freight: According to Xeneta, freight rates from North America to Asia this week decreased slightly to $1,172/FEU, down 1.51% from last week and up 6.64% from last month. Shipping lines have not yet announced GRI in August.

- Space: Stable for West Coast ports, and has improved in US East Coast ports.

- Empty 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 weeks or more before estimated time of departure (ETD).

Freight rates US West Coast - Asia | Week 28/22