Air
Trans-pacific: Air freight rates have skyrocketed as demand returns to pre-pandemic levels while overall capacity is reduced due to reduction of passenger flights that carry cargo. Although June is typically a slack season for air freight, we are forecasting rates will remain elevated, partially due to struggles with questionable ocean schedule reliability. With no end in sight to ocean service challenges, air freight rates will likely remain elevated through Q3, 2021.
Europe: The Trans-Atlantic market demand shows continued strength to the Americas and Asia. Capacity into North America had little to no additional space added over the past month. Capacity in and out of many Asian regions is strained due to country-wide lockdowns.
Americas:
TPWB The market continues to show strong demand in both directions for Asia and Europe with little change from previous months. Capacity from West Coast gateways are mostly constrained to Europe. However, capacity to Asia is filling extremely fast without let up.
TPEB Capacity is currently available to Continental Europe and the U.K., but aircraft continue to fly at high load factors. Airlines have hesitated to add capacity to transatlantic routings as they wait for details of the newly proposed E.U. travel regulations.
U.S. Hubs Capacity remains scarce for airport recovery, local delivery, and warehouse space – especially in USWC locations near LA/LB ports. Ground handlers are reportedly 3-6 days behind in breaking down freight from arriving flights.
Ocean
Transpacific Eastbound: Spot market pricing and premium rates continue to rise as carriers implement surcharges across all markets. Space remains critical with no end in sight as COVID continues to disrupt markets. Malaysia remains in lockdown, likely resulting in vessel diversions and blank sailings. As previously reported, carriers are now implementing significant increases for inland rail services as they look to avoid moving containers inland, keeping equipment turn-around times as short as possible.
General Rate Increases (GRI): Carriers are implementing announced GRIs for June 1, along with increases to premium services due to increasing demand.
Peak Season Surcharge (PSS): Carriers continue to implement announced PSS. Some carriers have already announced potential PSS to be effective July 1, 2021.
U.S. Market
Conditions at U.S. West and East coasts remain extremely congested and without improvement over the last two weeks.
We continue to receive updates from our stations across the U.S. regarding the current rate increases, capacity issues, equipment shortages, etc. we would like to continue to provide current and critical details regarding capacity and lead time for local markets.
West Coast: Currently booking 3-5 weeks in advance. Port and trucking capacity remains at critical capacity in LA/LB ports, chassis shortage and congestion due to COVID-related stresses continue. (Currently, 21 vessels anchored off the coast of LA/LB and 12 outside Oakland)
South-West: Currently booking 1-2 weeks in advance. Houston seems to be the one U.S. port that is not completely overwhelmed with volume but as we have seen over the last few months, it may not last as shippers look to avoid congested ports.
Mid-West: Currently booking 2-4 weeks in advance with some Chassis shortages in select ports and rail ramps.
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 has settled slightly as shippers move freight to Charleston. Savannah is reporting 7 vessels anchored outside, with Charleston reporting 7 and Norfolk reporting 2 vessels.
East Coast: Currently booking 2-4 weeks in advance. 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) We are also seeing local truckers raising rates to take advantage of the capacity crunch.