International shipping and logistics market (updated week 29/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 29/2021.

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Update the international shipping and logistics market for the week of 29/2021 (Photo: Phaata)

1. Shipping route: Asia → North America

Multimodal transport routes face many difficulties due to severe congestion in both coastal ports and inland transport hubs. Union Pacific's suspension of rail service in Chicago, in an effort to address an extremely severe backlog of cargo at stations, is expected to last a week or more. Trailer shortages, congestion, over-reliance on major gateways and rail transport, as well as labor disruptions due to Covid-19, are expected to continue as we enter the peak season.

Ocean freight rates: The General Rate Increase (GRI) surcharge on July 15 GRI has been applied, and is expected to continue to apply more GRI on August 1

Space: Serious lack

Container equipment: Serious lack

Recommendations:

- Place booking at least 4-6 weeks before the scheduled departure date for the best chance.

- Consider only delivering to coastal ports to avoid delays due to inland transport congestion.

Read more:

MSC warns of impacts of international multimodal transport on the West and East coasts in the US

2. Shipping route: Asia → Europe

Empty container space and equipment continues to be in short supply. Market demand outstrips supply, leading to skyrocketing freight rates. The situation was made worse by canceled sailings and shortages of container equipment. As a result, many shipments have to be dropped and cannot be exported.

Shipping lines have exceeded their service commitments and are restricting the receipt of new bookings. The reliability of the current schedule is quite low.

Ocean Freight rates: have increased since July 15. Freight rates are expected to continue to increase further on August 1.

Space: Serious lack

Container equipment: There is a severe shortage of containers in all Asian countries.

It is recommended that shippers make reservations at least 4-5 weeks before the scheduled departure date. Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

3. Shipping route: North America → Asia

Sailing delays and cancellations have continued to reduce capacity on the US West Coast. The West Coast is being hit hard by this capacity loss. To cope with the congestion, some shipping lines have reduced the frequency of their calls to Oakland and Seattle.

The US West Coast continues to see transit schedule delays in Los Angeles (LA), Oakland and Seattle that have worsened in recent weeks.

The shipping line is expected to apply a general price increase (GRI) surcharge in August for all dry goods exported to Asia.

Shipping space is scarce on both the West Coast and the East Coast of the United States. However, in the East Coast area is expected to improve further in the second half of July.

It is recommended that shippers make booking reservations at least 4-5 weeks before the scheduled departure date.