International shipping and logistics market (updated week 33/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 33/2021.

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Update the international shipping and logistics market for the week of 33/2021 (Photo: Phaata)

1. Shipping route: Asia → North America

Challenges continue as carriers experience capacity limitations and booking restrictions on specific service routes, especially on rail-connected services for inland deliveries in America territory. The shutdown of a port in Ningbo due to the Covid-19 outbreak last week is expected to disrupt and hit an already constrained market.

Carriers' capacity to service will become further constrained as demand increases ahead of the year-end holiday season and severe congestion occurs in both central and coastal ports.

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. Freight rates on the Asia - North America route increased sharply.

- Ocean Freight: The August 15 General Rate Increase (GRI) surcharge has been applied. In addition, a peak season surcharge (PSS) of September 1 is also expected to apply.

- Space: Lack of seriousness

- Empty container equipment: Serious lack

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

2. Shipping route: Asia → Europe

Space and empty 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. Many shipments have to be dropped and cannot be exported. The reliability of the schedule is quite low.

Shipping lines have been taking too many bookings before and are limiting bookings to new requests.

- Ocean freight: High in August and may increase due to a port closure in Ningbo.

- 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 ETD. Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

3. Shipping route: North America → Asia

The US West Coast continues to experience delays at all ports. With increasing port congestion at the Port of Los Angeles, vessel schedules will be severely impacted in the coming weeks.

- Freight rates: Some shipping lines have announced the application of a general rate increase (GRI) surcharge on September 1 for all dry goods exported to Asia.

- Space: Space is extremely scarce for West Coast ports, but has improved in US East Coast ports.

- 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 4-5 weeks before ETD.