International shipping and logistics market (updated week 40/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 40/2021.

container-freight-rates

Update the international shipping and logistics market for the week of 40/2021

1. Asia - North America route

Floating market rates for Asia - North America routes are adjusted down due to reduced demand.

This drop was mainly due to both China's Golden Week holiday and production cuts out of China due to ongoing electrical power restrictions.

Continued demand during the peak season on the Asia-North America service has created outbreaks of congestion. The situation is worsening and is expected to continue until at least early next year and possibly until inventories are fully replenished.

- Ocean Freight: The rates of many shipping lines have been extended or reduced from October 1, but the freight rates are still high.
- 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. Asia - Europe route:

Space and empty 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 space situation was made worse by many blanked sailings and lack of container equipment. Shipping lines have received too many bookings and are limiting new bookings.

Many shipments had to be dropped and could not be exported. Many sailings are constantly delayed and the reliability of the schedule is still very low.

There is some discussion by shipping lines about stopping the spot rate increase, but it is not yet clear what the outcome of this will be.

- Ocean Freight: Rates remained at a record high but stabilized in September and increased slightly in October. Most shipping lines have applied a premium rate.

- 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. North America - Asia route:

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 apply a general increase in price (GRI) surcharge on October 1 and is expected to continue to apply on October 15 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.