International shipping and logistics market (updated week 41/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 41/2021.

container-freight-rates

Update the international shipping and logistics market for the week of 41/2021

1. Asia - North America route

The uncertainty surrounding Asia-North America spot rates is mainly due to the recent slump in demand due to China's Golden Week and power constraints.

Whether freight rates will continue to move sideways, fall, or even rise and top again remains unclear.

Port congestion will persist and is forcing carriers to call smaller US ports.

- Ocean Freight: The freight rates of some carriers have extended or reduced rates in the second half of October, 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 has consistently outstripped supply, and freight rates have been skyrocketing for quite some time.

The space situation was made worse by many blank sailings and lack of equipment. The shipping lines have received too many bookings in the past and are restricting the acceptance of new bookings.

With many ships being delayed and many shipments being rolled over, the reliability of the current schedule is very low.

China has just returned from the Golden Week holiday. Studies on the impact of power shortages on production are underway.

- Ocean Freight: Rates remained at a record high 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 rate increase (GRI) surcharge on October 15 and is expected to apply again on November 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.