Freight Market Roundup | Week 5 (February 1st - 7th)
Ocean Highlights
As of February 4th, 34 container ships at anchor in LA/LB. 10 container ships anchored in OAK.
Hapag-Lloyd advised customers about de-facto blank sailings in February due to port delays. This could be followed by similar announcements from other carriers.
GRI for March 1st 960USD per TEU.
MSC General Rate Increase (GRI) effective March 6th, 2021, from Houston, New Orleans to Colombia, Ecuador, Peru, Chile, Bolivia. USD 100 per 20' Equipment; USD 200 per 40' Equipment.
All space prior to Chinese New Year is booked (over-booked) and even by paying a premium fee to get space, there's no guarantee of getting it. The massive delays of gate open time, cut off time, and departure day are still present at origin ports.
Rates and congestions aren’t expected to get better any time soon - we should have to deal with these issues going into Q2.
Expect trucking delays overseas after the CNY as drives need to quarantine before returning to work.
Current space status in China from week 5 - 7 + trucking situation:
Shanghai
All carriers are facing container shortages.
Space has been overbooked until early March.
We can’t guarantee space even with premium surcharge.
Ideally, send your bookings at least 4 weeks in advance to make sure you get space.
Most of drivers have already started the CNY holiday due to Covid-19 restrictions. Once CNY is over, they will be requested to quarantine before returning to work.
Ningbo
Equipment and container shortage.
Space has been booked until the end of February with no chances to get space for new customers.
Most of drivers have already started the CNY holiday due to Covid-19 restrictions. Once CNY is over, they will be requested to quarantine before returning to work.
Dalian
Space has been overbooked until the Chinese New Year.
Due to heavy snow and strong winds, as well as Covid outbreak at the port, operations have been at a standstill. All vessels currently hold a 2-3 week delay.
The Dalian Municipal Government is requiring that all vessels are disinfected before berthing and unloading, which leads to an extra 7-day delay. Empty containers can’t be returned on schedule, and too many containers are pending to discharge by inspection.
Equipment situation at Dalian is extremely serious.
Qingdao
Space has been booked until the Chinese New Year.
Container shortage is so severe that space can’t be guaranteed even paying premium. Some carriers are starting to limit the gross weight.
Most shippers in Shandong province are using their own trucks.
Nanjing
Equipment and container shortage.
Space has been booked until the beginning of February.
Truck businesses will be closed between February 1st - 8th.
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 9.
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.
Xiamen
Space has been fully booked until early February. Paying premium rate will not guarantee space.
Shortage of containers.
Most of drivers have already started the CNY holiday due to Covid-19 restrictions. Once CNY is over, they will be requested to quarantine before returning to work.
Taiwan
CMA/YML/ZIM are having container shortages.
Space has been booked until the Chinese New Year.
FEES
Hapag-Lloyd will apply a Peak Season Surcharge (PSS) on all dry cargoes in 20’STD and 40’STD/HC on the westbound trade from Spain and Portugal to USA, Canada and Mexico. Effective for sailings from March 1, 2021 onwards and until further notice, the PSS will be as follows: USD 75/TEU.
Hapag-Lloyd will adjust its Equipment Imbalance Surcharge (EIS) on all cargoes in 20’STD and 40’STD/HC on the westbound trade from Italy to USA and Canada. Valid for sailings commencing on March 1, 2021 (tariffing date) and onwards and until further notice, the EIS will be as follows: USD 150/TEU.
Please be advised that HMM Trans-Pacific Eastbound service will be implementing the following Emergency Intermodal Surcharge (EIT). As from January 31st, 2021 until further notice, in order to recover unexpected increases in the cost by congestion in US, all cargo shipped under tariff rate or under service contracts governed by charges in this tariff shall be subject to an Emergency Intermodal Surcharges (EIT). Emergency Intermodal Surcharge $350 per dry containers will be charged on all door moves via Los Angeles, California or Long Beach, California and all US inland cargoes including door and CY.
Effective March 1st, 2021 for reefer commodities moving from or via Oakland, CA, HMM will apply the following General Rate Increase (GRI): - USD $200/40’RF
Please be informed as of March 1st, 2021 (discharge date at Mexican Ports) the rates and conditions to be applied to import demurrage charges for all Mexican ports have been revised by MSC. For details, contact your our operational team.
Air Highlights
East Coast rates around $8.94/kg and West Coast rates around $8.18/kg. Both valid until February 5th.
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.
Atlas Air has no space until mid February.
Portugal suspends flights between the country and Brazil.
Trucking & Rail
Despite some improvement in productivity last month, terminal operators in the ports of Los Angeles and Long Beach say they probably won’t dig out until late spring from the vessel backlogs and congestion that have plagued them the past six months.
Shippers should anticipate intermodal savings to diminish in the first quarter, with intermodal contract rates poised to rise more than 10 percent in certain markets and potential downward pressure on truckload spot rates if a 3 percent sequential decline in January is a harbinger of slowing spot market demand, according to conversations with intermodal marketing companies (IMCs) and data from DAT Solutions.
Rate Trends
