International shipping and logistics market (updated week 37/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 37/2021.

container-freight-rates

Update the international shipping and logistics market for the week of 37/2021 (Image: Phaata)

1. Shipping route: Asia - North America

Several shipping lines have announced a pause in rate hikes, but it remains to be seen the clear details of how such a stance will be implemented in the market. Shippers and importers have been paying all-time high rates for months to get their cargo shipped as soon as possible.

Workforce strains, severe port congestion and Covid-19 related disruptions are expected to continue to put additional pressure on capacity in the coming months.

Strong demand is forecasted to last until the Lunar New Year 2022.

- Ocean Freight: The General Rate Increase (GRI) surcharge has been applied by many shipping lines on September 15.
- 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 shipping modes.

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

The situation was made worse by canceled sailings and shortages of container equipment. Many shipments had to be dropped and could not be exported. The reliability of the schedule is quite low.

- Ocean Freight: Still at a record high and stable in September. However, rates could rise further due to the possibility of sailing cancellations during Golden Week in China coming.

- 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

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.

Transport capacity has been improved for service from the US East Coast to Asia. However, as port congestion continues to increase, there is concern about blank sailings occurring due to prolonged schedule delays.

- Ocean Freight: Shipping lines have applied the general rate increase (GRI) surcharge from September 15 and is expected to continue to apply on October 1 for both dry and refrigerated cargo.

- 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.