Freight Market Update | Week 41
OCEAN FREIGHT
Asia to North America (Transpacific Eastbound)
Premium and extra loader market softens due to dips in demand for the most expensive space on TPEB.
Carriers have indicated that the demand outlook remains strong through the end of the year.
Congestion expected to remain severe.
Carriers extended or even reduced rates as of 2H October. Rate levels remain elevated.
Capacity is critical, severe undercapacity.
Book at least 4 weeks in advance.
North America to Asia
Vessel arrivals and available capacity remain fluid for USWC POLs.
Capacity more readily available from the USEC to Asia.
Deteriorating schedule integrity is creating significant challenges with posted earliest return dates and vessel cut-offs at the port.
Multiple GRI’s announced for dry and reefer cargoes for Oct 15 and Nov 01 expected to be implemented.
Deteriorated schedule integrity in addition to void sailings and delays.
Book 4 to 6 weeks in advance.
North America to Europe
Coast service to Europe is extremely tight and one service will be suspending their Seattle port of call for much of Q4.
There are 3 TAEB services that will be omitting Savannah and calling Charleston or Jacksonville instead due to the significant congestion issues at the port.
Rates remain steady for October.
Deficits are still plaguing IPI origins.
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)
Congestion at LAX/LGB is causing lines to now omit ports and impacting schedules.
Congestion at LAX/LGB port remains critical even though the number of vessels now waiting for berth is below 60.
GRI November 1 expected. Rates will stay strong for all Q4 2021
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
Space and equipment crunch continues, consistently exceeding supply.
Power shortages are affecting factory production up to a certain extent and causing more changes in shipping plans.
Rates remain at a record high level, but have been reasonably stable throughout October.
Capacity is extremely critical.
Severe equipment shortage across all Asia origins.
Book at least 4 -5 weeks in advance, consider premium options.
Indian Subcontinent to North America
Forward-looking rates soften as strong demand, equipment deficits, and port omissions continue to challenge the Indian Subcontinent.
Carriers are looking to re-align vessel schedules in an effort to increase schedule reliability.
Rates soften with no expected increases through end of October.
Equipment of all types are in deficit.
Use premiums on urgent shipments and shipments with CRD approaching.
North America to South America
Steamship lines started to announced GRI for the last quarter of the year. CMA -CGM and HSUD have already implemented it.
Persistent congestion at USWC ports has caused some shippers to seek the sanctuary of the East Coast to speed cargo.
Port of Los Angeles: 51 container ships at anchor or drifting awaiting berths (Ships are waiting an average of 9-12 days to catch a berth).
Port Everglades and Miami are presenting shortage of equipment and long waiting time for empty containers pick-ups.
Book at least 3 to 4 weeks in advance.
AIR FREIGHT
Asia
Due to the increase in demand, TPEB rates have begun increasing.
FEWB rates are relatively stable, however FRA terminal congestion is expected to continue for another two weeks.
In South Asia the rate level has also jumped quite a bit.
Recommended to place bookings at least a week in advance.
Europe
Rates fell slightly due to the re-introduction of capacity on the TransAtlantic.
Very heavy strain on import terminals AMS and FRA. Export terminals are also facing strain.
Place bookings at least 7 days ahead of CRD for most optimal rates and routing solutions.
Americas
US Export demand is increasing in the second half of October.
Slightly higher transit times into top European hubs due to their current labor shortage, and high throughput time.
RatBook early considering the dwell time at airports.