Freight Market Roundup | Week 4 (January 25th - 31st)

Ocean Highlights

• More than one in three containers worldwide are being rolled over, amid an unprecedented supply chain challenge hitting the liner community. That’s at least 37% of containers.

• J.B. Hunt Transport Services warns customers that intermodal prices will rise more than 10% in some US markets to recoup costs needed to restore fluidity to the network and support growth.

• There are currently 30 ships (-2 from prev. week) at anchor awaiting berths in LAX/LGB as of Friday Jan 22nd.
  All terminals continue to be congested due to the spike in import volumes and the same is expected to last until end of February 2021. Customers are urged to expedite the pickup of import containers. Moreover, terminals are working with limited labor and split shifts (COVID-19 related).

• New York: Minor berth congestion continues to affect operations within the port. Main factor causing the congestion is vessels arriving off proforma schedule. Increased dwell times for import volumes and large inventories of empty containers continue to impact operations at all terminals.

• Ongoing heavy congestion at all terminals in Vancouver and Prince Rupert (PRR) due to significant spike in import volumes. Weekend labor shortages and high winds continue to impact yard and vessel productivity. Berth delays at Vancouver and PRR are significant with vessels being held off berth for days.

• Maersk has confirmed another case of bad weather in the Pacific has knocked hundreds of boxes from one of its ships. The 13,100 TEU Maersk Essen was midway through the Pacific bound for Los Angeles when it lost up to 750 containers on January 16.

• California’s main two boxports, already suffering extreme congestion, are having to fight a severe outbreak of Covid-19 among their workforces, something that could hamper productivity further. Around 700 dockworkers at the ports of Los Angeles and Long Beach have contracted coronavirus and hundreds more have taken virus-related leaves.

• Most carriers will maintain rates with no change till Jan 31st.

• GRI for February 1st and 15th at $960 per TEU each.

• Some factories in China will close early and delay shipping until after the Chinese New Year holiday.

• Shipping companies are refusing to collect empty containers or exports after dropping off goods in the UK because they do not want to miss slots at other ports such as Rotterdam, Antwerp or Hamburg.

• Premium rates to get empty containers and space in vessels could range from $1500 to $1750 per unit - just for the premium charge.

• Space from China its full and tight until mid February at least.

• Rates and congestions aren’t expected to get better any time soon - we should have to deal with these issues going into Q2.

• Current space status in China from week 3 - 5:

  • Shanghai

    • All carriers are facing container shortages.

    • Space has been overbooked until mid February.

    • Too many blank sailings caused space for PNW gateway to be an issue now.

    • Ideally, send your bookings at least 4 weeks in advance to make sure you get space.

  • Ningbo

    • Equipment and container shortage.

    • Space has been booked until the Chinese New Year.

  • Dalian

    • Space has been booked until the Chinese New Year, especially for PNW due to many blank sailings. Some carriers have stopped accepting new bookings.

    • Equipment and container shortage.

  • Qingdao

    • Space has been booked until the Chinese New Year.

    • Equipment situation is getting worse. Expect shortage on all container sizes. Some carriers are starting to limit the gross weight.

  • Nanjing

    • Equipment and container shortage.

    • Space has been booked until the beginning of February.

  • Tianjin

    • Factories closed in HEBEI province due to the increase in Covid-19 cases, therefore cargo can’t be delivered.

    • Space to PSW/PNW/USEC/GULF is fully booked until week 6.

    • Equipment and container shortage.

    • It’s highly recommended to book at least 4 weeks in advance.

  • Nansha

    • Shortage of 40GP&HQ.

    • Space has been booked until the Chinese New Year.

  • Fujian

    • Space has been booked until the end of January.

    • February’s vessel schedule is still pending.

  • Xiamen

    • Space has been fully booked until early February. Paying premium rate will not guarantee space.

    • Shortage of containers.

  • Taiwan

    • CMA/YML/ZIM are having container shortages.

    • Space has been booked until the Chinese New Year.

• There will be a disruption in the logistics of several ports in China due to the suspension of feeder services in the Pearl River Delta (PRD) from January 20 to February 21.

  An analysis revealed that the affected region includes the ports of Zhongshan, Xiaolan, Zhuhai, Jiangmen, Shunde, Rongqi, Sanshan, Beijiao, Foshan, Jiujiang, Sanshui, Gaoming, Huangpu, Qingyuan, Nanhai, Yunfu, Zhaoqing, Sanrong, Gaoyao, Zhanjiang, and Wenzhou.

  The reason for the rupture is the fact that most services operate international connections (via or to Hong Kong), and their crews, who have been on board for more than 9 or 10 months, need to carry out at least one 14-day quarantine before returning home to celebrate the Chinese New Year with their families.

• For Hamburg Depots empty pick for 40’GP spot bookings is suspended until 14 February 2021.

FEES

• MSC: US West Coast Sanitary Compliance Fee: The merchant shall be liable for US West Coast sanitary compliance fee as set forth below and remains liable until the said charges have been paid in full: ALL TERMINALS ON USA WEST COAST, IMPORT AND EXPORT SHIPMENTS; Effective February 18th, 2021; Vessel sailing date in export and cargo in-gate date at origin in import. For the cargo originating from and destined to the U.S. Pacific ports, the merchant will be liable for the charges for US West Coast sanitary compliance fee, which is an additional mandatory cleaning protocol implemented by the Pacific Maritime Association, as set forth below:

  • For all SSA Terminals – (LGB – Pier A , OAK- OICT , and SEA T18)

    ·         $3.26/ Full TEU    

     For all other Terminals on USA West Coast

    ·          $2.48/ Full TEU

• SCOPE: TURKEY TO USA; PSS - PEAK SEASON SURCHARGE; Effective February 25th, 2021

  Effective February 25th 2021, MSC has decided to increase its Peak Season surcharge (PSS) out of Turkey due to strong demand in the market.

  The new increased amount will be:

  ·         USD 500/CTR for dry (from USD 250/container) 

  ·         USD 200/CTR for reefers (from USD 100/container)

  Effective Gate in date, February 25th, 2021 valid until further notice

• With effect from March 1, 2021 Hapag-Lloyd will revise the import demurrage Free Time in the United States as follows:

  USA Port of Jacksonville:

At USA West Coast Port: Oakland

At USA West Coast Ports: Los Angeles/Long Beach

Port Newark: MAHER TERMINAL

here

Air Highlights

• Rates increased between 1 - 1.30USD per kg for the upcoming Chinese New Year holiday.

• East Coast rates around $6.97/Kgs valid until January 27th.

• CK services are still canceling direct flight services from PVG to ATL until further notice.

• CA services are still canceling direct flight services from PVG to DFW until further notice.

• The Dutch government on Wednesday proposed the first nationwide curfew since World War 2 and a ban on flights from SA and the UK in its toughest moves yet to limit the spread of coronavirus in the Netherlands. Continue reading.

• Atlas Air has no space until mid February.

Trucking & Rail

• Entities representing truck drivers in Brazil have been moving in recent days to mobilize a national strike in order to get support for some important agendas and put pressure on the government.

  The strike would be on 1 February, with two entities heading the mobilization: the National Transport Association in Brazil (ANTB) and the National Council for Road Cargo Transport (CNTRC). Continue reading.

Rate Trends