International shipping and logistics market update - Week 29/2022

International logistics and container shipping market update on Asia, Europe and North America routes in the week of 29/2022.

container-freight-rates

1. Asia - North America route

Spot rates continued to trend down despite a sharp increase in fuel prices. Recent fuel price hikes have been forecast to drive up spot rates. However, weak shipping demand has caused spot rates to drop continuously in the past weeks.

US importers continue to use spot rates as a short-term savings solution as the spread between long-term contract rates and spot rates widens.

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

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

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

- Freight rates: Ocean Freight from Asia to the West Coast of North America this week were at USD 6,838/FEU, sharply down 7.26% compared to the previous week, down 11.42% compared to the previous month. before, according to Xeneta.

- Space: Most are available

- 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 29/22

Freight rates Asia- US West Coast | Week 29/22 (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: Rates were mostly extended at the end of July. Rates from Asia to Northern Europe this week is at $10,162/FEU, down slightly by 0.1% from last week and down 2.30% from last month, according to data. Xeneta.

- 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 29/22

Freight rates Asia-Europe | Week 29/22 (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: Freight rates from North America to Asia this week increased to $1,195/FEU, up 1.96% from last week and up 7.85% 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 29/22