Freight Market Update | Week 39

OCEAN FREIGHT

Asia to North America (Transpacific Eastbound)

TPEB floating market rates soften due to reduced demand.This drop is due to the Chinese Golden Week and reductions in production.
Congestion flare-ups, which in turn create strains and bottlenecks, are expected to continue.
Demand levels still expected to be strong when inventories are replenished to sufficient levels.
Several carriers have extended or reduced rates in 1H October, but rate levels remain high.
Capacity is critical, severe undercapacity.
Book at least 4 weeks in advance.

North America to Asia

Space continues to be tight for USWC POLs.
Capacity more readily available from the USEC to Asia.
Deteriorated schedule integrity in addition to void sailings and delays.
Multiple GRI’s announced for dry and reefer cargoes for Oct 15 expected to be implemented.
Book 4 to 6 weeks in advance.

North America to Europe

Available capacity on the TAEB trade with carriers looking for cargo from the US East and Gulf Coasts.
US West Coast service to Europe is very tight.
Rates remain steady for October.
Availability for standard equipment at ports has not been an issue, but is difficult for special equipment.
Book at least 3 to 4 weeks in advance for East Coast/Gulf and 4 to 6 weeks for Pacific Coast.

Europe to North America (TAWB)

Terminal congestion along the US East Coast not easing with Savannah now counting 27 vessels waiting for berth.
Congestion at LAX/LGB port is still critical with over 60 vessels in queue.
Capacity remains tight for both North Europe and Mediterranean services.
Book 5 or more weeks prior to CRD.Request premium service for higher reliability and no-roll guarantees.

Asia to Europe

Overall space situation is worsened by blank sailings and poor equipment availability.
Space and equipment crunch continues, consistently exceeding supply.
With continuous vessel delays and shiftings, schedule reliability is very low.
Rates remain at a record high level and a marginal increase in October. Most carriers have extended their premium rates.
Capacity is extremely critical.
Severe equipment shortage across all Asia origins.
Book at least 4 -5 weeks in advance, consider premium options.

India to North America

Carriers are looking to re-align vessel schedules in an effort to increase schedule reliability.
Equipment deficits and port of loading/discharge omissions continue.
Equipment of all types are in deficit.
Rates increased for 1st half of October.
Use premiums on urgent shipments and shipments with CRD approaching.

North America to South America

The American supply chain is struggling to adapt to a crush of imports flooding major gateways.
October GRI implemmented.
Equipment deficit on special containers, book prior to estimated departure date.
Book at least 3 to 4 weeks in advance.

Asia

Golden Week began this week, market and rates are stable. The following week expected to be relatively weak but production will likely recover soon.
The TPEB market is tight, and there continues to be strong demand for ocean-to-air conversions; however, rates remain steady.
Space ex-BKK on the TPEB lane is extremely tight with several carriers not accepting new bookings.

Europe

Far East Eastbound back to full operational capacity. Expect an increase in demand as Golden Week comes to a close on Friday.
Rates still have remained steady as there is enough capacity to meet demand.
Heavy strain on EU ground handling terminals at AMS and FRA.

Americas

Exports to China will decrease this week due to Golden Week.
Demand to Europe and LATAM remain steady and stable.
Larger shipments from major outbound gateways can take 2 to 4 days from booking to uplift into the EU, LATAM, or Asia.