International shipping and logistics market (updated week 30/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 30/2021.

container-freight-rates

Update the international shipping and logistics market for the week of 30/2021 (Photo: Phaata)

1. Shipping route: Asia → North America

The market is about to enter the peak season but there are many supply constraints. It is expected that the capacity of carriers to provide services will become even more limited as demand before the year-end holiday season increases and severe congestion occurs in both coastal ports and ports. inland center. It is forecasted that shipping lines will impose port congestion charges and fees incurred due to strong demand, and limit bookings for intermodal transport services.

- Ocean Freight: The August 1 General Rate Increase (GRI) will apply, and the September 1 peak season (PSS) surcharge is expected to apply.
- Space: Lack of seriousness
- Empty container equipment: Serious lack

Recommendation: Shippers should continue to book at least 4-6 weeks before the scheduled departure date for the best chance of guarantee. Shippers consider choosing to deliver at coastal destinations instead of inland due to connection delays between shipping methods.

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 trains and shortages of container equipment. Many shipments have to be dropped and cannot be exported. The reliability of the schedule is quite low.

Yantian Port is mostly back up and running but is still dealing with congestion and disruptions.

- Ocean Freight rates: At a record high and is expected to increase further from August 1.

- Space: Lack of seriousness

- Container equipment: There is a serious shortage in all Asian countries.

Recommendation: Shippers should make reservations at least 4-5 weeks before the scheduled train runs. Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

3. Shipping route: North America → Asia

Vessel sailing delays and cancellations have further reduced capacity. The U.S. West Coast is still heavily affected by this reduction in capacity loss. To cope with the congestion, some shipping lines have reduced the frequency of their calls to Oakland and Seattle in recent weeks.

- Ocean freight rates: Shipping lines have announced the application of a general price increase surcharge (GRI) in August for all dry goods exported to Asia. Many shipping lines implement drastic rate increases to destination ports in Australia and New Zealand.

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

- Container equipment: serious shortage in the West Coast area

Recommendation: Shippers make reservations at least 4-5 weeks before the scheduled departure date.