Air
Transpacific: Peak season continues, and demand remains steady. Increasingly, shippers indicate that current demand will continue through the holiday peak season and CNY. Rates across most Asian origins continue a steady incline.
Europe: Rates remain steady at current levels for the moment on TAWB/FEWB ex U.E. and U.S., but capacity continues to meet demand. The capacity issues have caused ripple effects through import terminals as well, which we see continuing through peak season.
Americas: Airlines continue to face capacity problems with increased demand and PAX volume remaining low. COVID related issues have further exacerbated airline terminal congestion conditions, as exemplified by Delta’s Chicago facility closing for 9 days due to a local outbreak. It is expected capacity struggles will carry through the Holiday peak season and into the New Year.
Ocean
Transpacific eastbound: Pricing has remained stable for two months running but seem to be trending toward consecutive spot-rate increases.
General Rate Increases (GRI): although, a few carriers have implemented a partial GRI on December 1, the biggest increases are being applied to premium services due to the overwhelming demand. That said, most other rates remain at current levels.
Capacity and space remain limited despite an increase in supply, as additional capacity has been met with equal demand. We continue to recommend a lead time for advanced booking from 14 to 21 days minimum to secure space on planned sailing.
Carriers continue to offer discounts for non-40’ container equipment, such as 20’ and 45’ containers. NOR and carrier premium services are some other options that are worth considering. We are also seeing an increase in premium services from all carriers offering these services, due to increased demand for guaranteed space and movement.
These additional service options should be explored to mitigate capacity and equipment shortage issues. Your Janel Group representative would be happy to discuss these options if you are experiencing issues with bookings or equipment.
U.S. Market
Congestion, equipment shortage and capacity issues continue to be a major issue across all major U.S. ports. We are keeping a close eye on this and will continue to report details as they become available but strongly recommend planning your supply chain calendar as far in advance as possible.