International shipping and logistics market update - Week 43/2022

International logistics and container shipping market update on Asia, Europe and North America routes in the week of 43/2022.

Shipping & Logistics Market Update - Phaata

International shipping and logistics market update (Photo: Phaata)

1. Asia - North America route

FAK freight rates on the transpacific route continue to decline due to the current low demand. However, carrier attention is gradually moving away from the US West Coast (USWC) and focusing more on the US East Coast (USEC), the Gulf and inland destinations. Port conditions on the USWC are improving but have not yet returned to pre-pandemic levels. Currently, cargo is congested at USWC ports to connect with railways.

For Canada, the market conditions and rates are similar to those in the United States. The ports of Vancouver and Prince Rupert have both seen declines in vessel numbers and berthing delays. However, the backlog for railways has improved compared to last week.

- Freight rates: Freight rates continue to trend down. Freight rates from Asia to the West Coast of North America this week decreased by 5.13% compared to the previous week, to $ 2,054 / FEU. This rate is down 41.70% month over month, according to Xeneta data.

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

- 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 rate Asia- US West Coast | Week 43/22 (Image: Phaata.com)

2. Asia - Europe route:

After Golden Week, factories are back up and demand is recovering. There were many blanked sailings in week 42 but in the coming weeks capacity is not expected to be used up. Spaces are available but schedule reliability is affected. Port congestion in Europe continues to cause sailings delays to Asia.

- Freight rates: Freight rates continue to trend down due to low demand. Freight rates from Asia to Northern Europe this week continued to plummet to $4,860/FEU, down 1.80% from last week and down 29.24% from last 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 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 rate Asia-Europe | Week 43/22 (Image: Phaata.com)

3. North America - Asia route:

Ports on the US East Coast continue to be challenged with vessel congestion in Savannah and New York. Erratic sailing schedules continue to pose major challenges.

For ports in US West Coast, spaces at the Port of Los Angeles is available steadily; Ports of Oakland and Seattle also improved.

- Freight rate: No GRI announced for October and November. Freight rates from North America to Asia this week decreased by 1.71% compared to last week, to 1,092 USD/FEU. This price decreased by 5.21% compared to the previous 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 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.