International shipping and logistics market update - Week 32/2022

International logistics and container shipping market update on Asia, Europe and North America routes in the week of 32/2022.

Shipping & Logistics Market Update - Phaata

International shipping and logistics market update (Photo: Phaata)

1. Asia - North America route

Spot rates continue to fall along with an increase in the number of train cancellations. Canceled trains appear more often in the market when shipping lines are having to adjust capacity in the face of low demand, leading to a continuous drop in spot rates.

There are indications that the power cut in Ningbo (Zhejiang province) will affect production output but there is no official information yet.

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

Trailer shortages and inland congestion in the US continue to create difficulties in destinations. Containers are stacked at railroad stations due to insufficient re-trailer supplies and rail traffic imbalances in: Chicago, Dallas, Kansas City, Memphis, Denver, St Louis, Santa Teresa and Omaha .

- Freight rates: After a very strong drop last week, this week freight rates from Asia to the West Coast of North America rose again at $6,125/FEU, up 3.31% from last week and down 16.78% from last week. with the previous month, 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 32/22 (Image: Phaata.com)

2. Asia - Europe route:

There is no peak season like past years and demand has slowed.

Shipping capacity in the market is still relatively limited due to a large number of blanked sailings, slided schedules and omitted ports.

Port congestion in Europe, especially Hamburg and Rotterdam, has reached a critical level causing further delays and delaying the return of ships to Asia. Various voyages are having to skip calls at Hamburg and divert to alternative ports.

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.

There are indications that the power cut in Ningbo (Zhejiang province) will affect production output but there is no official information yet.

- Freight rates: Freight rates tend to decline in early August. Rates from Asia to Northern Europe this week stood at $9,415/FEU, a sharp decrease of 1.56% from the previous week and a decrease of 7.61% from the previous month, according to the 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 32/22 (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: No GRI announced in August. Freight rates from North America to Asia this week increased to $1,230/FEU, up 3.89% from last week and up 5.85% from last month.

- 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).