Ocean Freight Market
Market Overview: Spot rate (FAK) space, excluding premium service fees, is starting to become available through difficult to secure. That said, our partners predict power reduction restrictions throughout China may last through February 1, playing a major role in rate increases. Carriers start to show interest in IPI cargo again, however, rail service continues to experience strains and new transpacific freight services continue to roll out, adding to supply. Lead time for China base port bookings has decreased from 3-4 weeks to 2-3, with backlog continuing to affect feeder routings which remain 3-4 weeks minimum.
General Rate Increases (GRI): October 15 GRI saw a partial implementation by some carriers. Multiple GRI’s announced for dry and reefer cargo for November 1 are expected to be implemented.
COVID-19 Updates: SE Asia Restrictions in parts of Southeast Asia have been relaxed, but infrastructure and capacity constraints prevent recovery from taking place. Vietnam Southern Vietnam productivity back to approximately 30% following an easing of restrictions. Guatemala crowds continue to protest and form roadblocks at major roadways affecting import and export cargo in Guatemala and El Salvador.
Blank sailings: The number of blank sailings has stabilized in October with little changed since the last report. Notices can be found on our website (Week 41)
Holiday Notice:
• Malaysia: Offices closed Oct 19. Normal hours to resume Oct 20. Offices closed Nov 4. Normal hours to resume Nov 5.
• Thailand: Offices closed Oct 13. Normal hours to resume Oct 14. Offices closed Oct 22 through 23. Normal hours to resume Oct 24.
• Indonesia: Offices closed Oct 19. Normal hours to resume Oct 20.
• Cambodia: Offices closed Oct 15. Normal hours to resume Oct 16. Offices closed Nov 9. Normal hours to resume Nov 10. Offices closed Nov 18 through 21. Normal hours to resume Nov 22.
• Mainland China: Offices closed Oct 1 through 7. Normal hours to resume Oct 8.
• Hong Kong: Offices closed Oct 1. Normal hours to resume Oct 2. Offices closed Oct 14. Normal hours to resume Oct 15.
• India: Offices closed Oct 15. Normal hours to resume Oct 16. Offices closed Nov 14. Normal hours to resume Nov 15. Offices closed Nov 19. Normal hours to resume Nov 20.
Airfreight Market
Market Overview: Capacity remains available with a momentary slack in both supply and demand, as power restrictions slow down supply after Golden Week holiday. Hong Kong experienced a 25% decrease in manpower due to quarantine restrictions that will have ripple effects on the remaining month as scheduled flights are expected to operate as normal, but charters and ad-hoc flights are likely to be impacted.
The U.S. Market
Market Overview: International demand has seen slowing down over the last 2 weeks, but USEC/WC ports continue to be the bottleneck. Currently, Signal port data shows 29 Vessels at anchor in LA/LB ports with a reported average 12-day dwell time. That said, U.S. government moves to keep LA/LB ports open 24/7 to further assist to mitigate the bottleneck, with further details available on the White House website. However, New York down to Savannah continue to show extreme congestion without let up. As carriers ramp up IPI service again, rail ramps are still being plagued with equipment shortages, specifically special equipment. Starting mid-November, in an effort to balance port stops on the U.S. East Coast, both Hapag-Lloyd AG and CMA CGM will temporarily route container ships to Jacksonville and Charleston, to avoid adding to heavy traffic at the Port of Savannah. Air freight CFS locations continue to experience backlogs that have forced operations to off-airport facilities in attempts to manage the surge of inbound cargo. We are seeing the implementation of earlier closeouts for exports to accommodate longer throughput times and screening requirements.
Janel Group continues to closely monitor the market and port situation. Updates will be provided as they come available. To secure a booking or explore additional options for your supplier, please reach out to your Janel Group Representative.
Gabriel Racicot
Pricing & Commercial Support Manager