Air
Transpacific Eastbound: Spot rates for loose cargo remains unchanged. However, with the holidays approaching and most shippers booking past the peak season, it is likely market demand may start to slow down into next week.
Europe: Rates hold as capacity continues to match demand. Automotive and manufacturing industries are currently driving rates with the expectation that the now-approved Pfizer vaccine will add additional stress to capacity. This additional stress to demand is expected to result in rate spikes.
Americas: Airlines continue to face COVID related operational challenges. LAX and the West Coast seem to be facing the most difficult environment due to high cargo volume and labor shortages. However, these issues are affecting all key hubs across the entire U.S.
Ocean
Transpacific Eastbound: Pricing remains stable for now as carriers are content with the peak season surcharges and premium service fees they are assessing.
Capacity continues to be an issue with shippers struggling to find space and equipment on departing vessels. Many shippers continue to use premium service options to secure departures before the New Year. If you have not secured space for bookings needed before the Chinese New Year, we strongly suggest reaching out to your Janel Group representative to discuss the best options for your supply chain.
General Rate Increases (GRI): Carriers have extended rates through 12/31 with the exclusion of MSC, who implemented their entire GRI. In place of the GRI, carriers are starting to announce a Peak Season Surcharge for transpacific trade, effective January 1 & 15 2021.
The U.S. Market
Congestion, equipment shortage, and capacity issues continue to be a major issue across rail ramps and U.S. ports.
We are recommending a minimum advanced booking notice 7-10 days before cargo ready date or arrival at port and 10-14 days prior, for rail ramps. This recommendation will assist in finding capacity and allowing lead time for truckers to secure chassis. The U.S. holidays are starting to affect capacity further, as truckers tend to only take local moves as we get closer to the holiday season.
Savannah and Charleston ports have reached unmanageable capacity levels. Drivers are experiencing excessive wait times at the port, carriers are booked out a minimum of 2-3 weeks and most are no longer accepting new business. Some of our customers are looking at the ports of Jacksonville and Norfolk as alternative options during this time.
Carriers are discussing a Congestion Surcharge for all shipments calling UK Ports, likely to go into effect on 1/1/2021.
The Pearl River barge service is likely to be closed for January in preparation for arrivals during the Chinese New Year (CNY).
Inclement Weather: As we move into the winter season, we can expect weather related delays. Janel Group offices and staff will continue to communicate directly regarding any services outages and delays.
We are closely monitoring this situation and will continue to report details as they become available.