International shipping and logistics market (updated week 47/2021)

Update on the international logistics and container shipping market on Asia, Europe and North America routes in the week of 47/2021.

container-freight-rates

Update the international shipping and logistics market for the week of 47/2021

1. Asia - North America route

Demand on the Asia-North America route is forecast to be strong ahead of the Lunar New Year, as importers scramble for space for bookings in the coming weeks.

Increased demand and reduced capacity keep freight rates high.

High demand is expected to kick off for the 2022-2023 contract negotiation season.

Congestion at the ports of Los Angeles/Long Beach and Savannah remains severe and is expected to worsen in Vancouver due to recent flooding.

Port congestion and vessel shortages continue to negatively affect schedule capacity and reliability.

- Ocean Freight: Some shipping lines have applied the General Rate Increase surcharge (GRI) since mid-November; and is expected to apply again in early December. Rates are still increasing and demand for premium services is still very 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:

Container space and equipment are still in short supply. Market demand has consistently outstripped supply, and freight rates have been skyrocketing for quite some time.

The seating situation was made worse by many train cancellations 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 changed, the reliability of the current schedule is very low.

Power shortages are affecting factory production to a certain extent and causing more changes in transportation plans.

- Ocean Freight: Although freight rates are still at a record high and have stabilized in November. Most shipping lines have extended the application of guaranteed premium rates. There are a few shipping lines that have adjusted their prices slightly.

- 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:

Arrival vessels and available capacity remained stable for US West Coast ports. Capacity on the East Coast of the United States has improved for the better.

The integrity of the reliability of the schedule is degraded. Many ship blanks and delays present significant challenges for shippers.

- Freight (Ocean Freight): GRI announced by many shipping lines for both dry and refrigerated cargo in November is expected to be implemented.

- Ocean Freight: The general increase in price (GRI) surcharge is fully applied by shipping lines for both dry and refrigerated cargo in November. In December, GRI is likely to be deployed for ports of destination in India and Australia.

- 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.