International shipping and logistics market (updated week 34/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 34/2021.

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Update the international shipping and logistics market for the week of 34/2021 (Photo: Phaata)

1. Shipping route: Asia - North America

Peak season is underway and is expected to put further strain on the Asia-North America services. Forecasts of strong demand from shipping lines and importers in the US suggest that the peak season will continue into the 2022 Lunar New Year. Capacity remains down due to the accumulation of ship delays and port congestion. and many canceled trains - despite the addition of enhanced sailings and chartered vessels available on the market.

Transportation into the US interior is still limited and difficult because of congestion.

- Freight (Ocean Freight): The General Rate Increase (GRI) surcharge was introduced on August 15, and is expected to continue to apply on September 1.
- Space: Lack of seriousness
- Empty container equipment: There is a serious lack of equipment.

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 transport methods.

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. 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: Still at a record high and stable in August. However, freight rates could rise further as part of Ningbo port is temporarily closed due to Covid-19 and the upcoming Golden Week.

- 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.

However, capacity has improved for service from the US East Coast to Asia.

- Ocean Freight: The shipping lines have announced the application of a general rate increase (GRI) surcharge for services from the US West Coast to Asia, applicable from September 1 for dry goods.

- 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 4-6 weeks before ETD.