International shipping and logistics market - Week 16/2022

International logistics and container shipping market on Asia, Europe and North America routes in the week of 16/2022.

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International shipping and logistics market update for the week of 16/2022

1. Asia - North America route

Shanghai is still under lockdown due to a spike in the number of Covid-19 cases during the Easter holiday.

In general, the demand for transportation on the Asia-North America route is still in a downtrend. Ocean carriers continue to assess the impacts on bookings and redirecting the promotion of exports from countries in Southeast Asia due to current restrictions and a decrease in export shipping activities from China.

Inventory replenishment efforts remain important and necessary for many importers and retailers ahead of the traditional peak season.

Severe congestion, equipment imbalances, schedule slippage, port abandonment, flight cancellations and increased fuel fees continue to create challenges.

- Freight rates: Freight rates are on a downward trend. However, demand for bookings with "premium" services remains strong.

- Space: Lack of seriousness

- Empty container equipment: There is a serious lack of equipment.

Recommendation: Shippers should continue to book at least 3-4 weeks before estimated time of departure (ETD) for the best chance; Consider switching from a standard service to a "premium" guaranteed service. Monitor and check closely with suppliers to capture any Covid-19 related impacts or changes on their production and forecasts quickly to adjust accordingly fast.

Freight rates Asia-North America | Week 16/22 (Image: Phaata.com)

2. Asia - Europe route:

Disruption continues to affect Asia-Europe routes.

Shanghai remains under lockdown although it is expected that the blockade will be lifted in some areas. Other cities in East and North China are also facing increased COVID cases. This is affecting the plant's production, warehousing and trucking capabilities, although ports and trucking continue to be fully operational.

COVID cases in China are causing much confusion in Asia. Especially the situation in Shanghai with the local lockdown and instability. Factories reopened but were unable to start production due to lack of raw materials.

Europe is affected by congestion at ports of arrival, resulting in re-routing and delays for incoming vessels.

Spaces are available for FAK bookings for all shipping lines. However, carriers have not yet opened for bookings under long-term contracts.

It is expected that there will be some port skipping and blanked sailings announced by carriers as a response to recent developments.

- Freight rates: Freight rates are still high but tended to decrease in March and continued into April due to market slowdown.

- Space: Shortage

- Empty container equipment: Shortage in all Asian countries.

Recommendation: Shippers should make reservations at least 2-3 weeks before estimated time of departure (ETD). Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

Freight rates Asia-Europe | Week 16/22 (Image: Phaata.com)

3. North America - Asia route:

Incoming vessel numbers and available capacity remained stable for US West Coast ports. Port capacity on the East Coast of the United States has improved.

The situation on the East Coast shows that the Port of Savannah's performance is improving, however the Port of Charleston continues to be congested and may be missed by some shipping lines.

The integrity of the schedule is impaired. There are many blanked sailings and delays, which are creating great challenges with the vessel's arrival and departure dates already announced.

- Ocean freight: Shipping lines have announced limited GRI levels announced for implementation in late April and early May.

- Space: Stable for West Coast ports, and has improved in US East Coast ports.

- Empty 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 weeks or more before estimated time of departure (ETD).