Air
Trans-pacific: Trade lanes exiting Asia were extremely busy leading into the CNY holiday but the market slow down hits this week as factories go into a slow production cycle. Many freighter flights are being canceled as demand cools down – approximately 2 weeks beginning 2/14.
Europe: Main airports and CFS locations in Europe are fully operational and continue to show strong demand. Capacity out of the E.U. to Asia is available, however, the capacity to the U.S. is seeing high demand affecting capacity.
Americas:
TPWB The market is showing strong demand into all Asia hubs and some supply chain disruptions on the WC and Midwest into HKG and Japan. Cancellations during CNY this week through next week, with flights returning to normal schedules at the end of February.
TPEB Capacity is available to Continental Europe and the U.K., but aircraft are flying at high load factors.
Ocean
Transpacific Eastbound: Spot market pricing remains stable, as carriers extend rates through Feb 28. However, premium service increases vary by lane and carrier as expected but staying power remains unseen while Asia is on CNY Leave. Carriers likely will implement announced voided sailings after the holiday, so space will remain tight throughout February and into March.
General Rate Increases (GRI): Partially implemented – Most carriers (MSC, YML, Etc.) have extended their rates through Feb 28. We recommend booking 2-3 weeks before CRD as non-premium services are low priority.
Ocean Freight Contracts Big scale Beneficial Cargo Owners (BCO’s) that have fulfilled their 2020/2021 service contract Minimum Quantity Commitment (MQC) have begun to negotiate the 2021/2022 s/c with carriers. Our partners advise some are signing contracts at current rate levels for 12-18 months for China base port to USWC – Carriers are pushing shippers to the spot market for IPI and USEC routings. We will have a clearer view on where NVOCC’s rate levels will be once BCO’s have signed their contracts – which not be until Mid-March.
Equipment shortages remain an industry-wide challenge for all container sizes and a major limiting factor for shipments out of Asia. Repositioning and in-fleeting will remain a focus for most carriers into Q1.
Equipment Returns and Import dwell time of containers: Vessels continue to sit at anchor waiting to be unloaded in the ports of LA/LB, with limited appointment slots and reduced throughput at the terminal due to COVID-19 issues and volume. (currently 32 vessels off LA/LB) We are working to secure appointments and reduce storage, demurrage, and detention costs. That said, truckers in key U.S. ports are increasing rates.
The U.S. Market
Conditions at West and East coasts remain extremely congested, without improvement over the last two weeks.
We continue to receive updates from our local stations across the U.S. regarding the current rate increases, capacity issues, equipment shortages, etc. Below are current and critical details regarding capacity and lead time for local markets.
West Coast: Currently booking 3-5 weeks in advance. Trucking capacity remains at max capacity in LA/LB ports for the foreseeable future, as vessels continue to stack up in cue. (32 vessels anchored off the coast of LA/LB and 9 outside Oakland, as of today) HMM is predicting a 65% in volume growth from weeks six to seven and equipment and capacity shortages to remain.
South-West: Currently booking 2-3 weeks in advance with not much congestion currently at the port of Houston. Texas is now under a state of emergency due to unprecedented cold weather. Local ports, vendors, etc. are without power currently.
Mid-West: Currently booking 1-2 weeks in advance. Severe ramp congestion from the recent winter storms continues to disrupt intermodal service in/out of Chicago. Railyards/ramps have implemented gate restrictions until at least 02/13 and have also advised delays up to 72-hours. BNSF rail ramp specifically, has delayed arrivals up to a week due to congestion.
South-East: Currently booking 3-5 weeks in advance with last-minute bookings and appointment requests being nearly impossible to secure, especially at normal rate levels. The situation at the ports of Savannah and Charleston remains dire. (current vessels anchored outside SE ports: 7 SAV, 2 CHS, and 1 ORF)
East Coast: Currently booking 2-4 weeks in advance. Weather conditions have exacerbated congestion at NY/NJ and other EC ports... Smaller ports continue to be overwhelmed with volume are being pulled from certain loops and sailing schedules to avoid arrival delays (IE the port of Boston has been experiencing this issue with more frequency than others)