International shipping and logistics market - Week 21/2022

International logistics and container shipping market on Asia, Europe and North America routes in the week of 21/2022.

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International shipping and logistics market update for the week of 21/2022

1. Asia - North America route

Shipping demand on the Asia-North America route was constrained by many factors such as the continued impact of Covid on Shanghai, high multi-month inventory levels, and global economic developments. Shanghai is gradually opening up after nearly 2 months of closure.

For goods that are already in stock, US importers can take advantage of existing market space along with better spot rates.

Labor negotiations by the International Labor and Warehouse Federation of America (ILWU) and the Pacific Maritime Association (PMA) are set to begin and stakeholders await news on possible effects.

- Freight rates: According to Xeneta, freight rates from Asia to North America West coast this week at $8,299/FEU, down 0.55% compared to last week and down 3.16% compared to last week. last month. Demand for bookings with premium services remains strong.

- Space: Improved

- Empty container equipment: Improved.

Recommendation: Shippers should continue to book at least 2 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.

Giá cước vận chuyển Châu Á-Bắc Mỹ |Tuần 21/22 (Ảnh: Phaata.com)

Freight rates Asia- US West Coast | Week 21/22 (Image: Phaata.com)

2. Asia - Europe route:

Shanghai is gradually opening up after nearly 2 months of closure.

Demand is growing, but congestion is still having a major impact on capacity deployed on this route.

Q3 is expected to pick up strongly with a peak in the summer. However, there are many macro uncertainties such as the Ukraine conflict, high inflation across Europe, and falling consumer confidence.

Severe congestion at European ports is delaying return to Asia, leading to more delays and cancellations.

- Freight rates: Freight rates are expected to increase in June due to more scarce spaces. Rates from Asia to Northern Europe were at $10,345/FEU, up 0.2 percent week-on-week and down 4.72% month-on-month, according to Xeneta data.

- Space: Shortage

- Empty container equipment: Shortage in all Asian countries.

Recommendation: Shippers should make reservations at least 2 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 21/22 (Image: Phaata.com)

3. North America - Asia route:

Vessel arrivals and capacity availability remained stable for all US West Coast ports.

More sailings are expected to be blanked due to the large number of sailings waiting in Shanghai.

The East Coast region continues to see challenges with vessel congestion and a number of shipping lines having dropped out of the Charleston and Savannah ports.

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: According to Xeneta, freight rates from North America to Asia this week were unchanged from last week's, still at $1,103/FEU, down 2.82% from last week, and down 0.63% from the previous month. The shipping lines announced the exercise-limited GRI in June.

- 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).