Ocean Freight Market
Market Overview: Exorbitant container rates have become the norm over the last 6 months, but space is becoming nearly impossible to secure at any price. Reports of $20,000/40’ bookings being delayed or even rejected have become reality. Space is the name of the game.
Trans-pacific: Traditionally during peak, carriers would deploy their available fleet for some relief, controlling the market via operational blank sailings. However, what we see now are “structural blank sailings” where carriers looking to deploy vessels, are being tied up in bottle necks from congestion and other market forced delays. Until there is order at local ports there seems to be no end in sight to the steady rise in rates. Premium service costs are here to stay until demand is reduced or absent.
General Rate Increases (GRI): July 1st GRI - full carrier announcements being implemented. July 15 GRI expected.
COVID-19 Updates: Yantian International Container Terminals’ (YICT) has reached 70% of export productivity levels in the past week, however 60,000 TEU remains backlogged for loading. Import operations have returned to full capacity but shippers and receivers will feel the effects of the COVID shutdown through July.
Operational blank sailings: Blank sailing notice for June can be found on our website (Week 25)
Holiday Notice: USA Independence Day - July 4-5
Airfreight Market
Trans-pacific: All markets remain at elevated levels and air freight out of China has seen steady increases due to congestion at Yantian Port. July is trending to be a busy month from Asia due toy market strains.
Trans-Atlantic: Market demand shows continued strength to the Americas and Asia with a slightly higher demand into USWC.
Americas: TPWB Market continues to show strong demand in both directions for Asia and Europe. TPEB Capacity is currently available to Continental Europe and the U.K., but aircraft continue to fly at very high load factors and remain unchanged over previous weeks.
The U.S. Market
Market Overview: West and East Coast ports remain congested with a further stain from supply chain issues abroad and locally, due to carriers avoiding IPI service into inland rail ramps.
West Coast: Currently booking 2-4 weeks in advance.
LA/LB ports are making progress in congestion. Currently only 6 vessels at anchor. Oakland trends in the right direction as OICT Terminal is coming back online after months of down time. However, all WC ports are experiencing lack of rail capacity and equipment shortage. (LA/LB Port Status Source: Signal)
South-West: Currently booking 1-2 weeks in advance.
Houston continues to see minimal congestion with the exception of freight routed MLB.
Mid-West: Currently booking 2-4 weeks in advance.
Rail yards continue to run out of land to store containers (Joliet mounts 2,500 containers stacked in delay) Massive Chassis shortage continue and 12 out 16 terminals experiencing turn times 30-40% longer than last year, which is directly affecting cost via greater wait time costs.
South-East: Currently booking 3-5 weeks in advance.
The ports of Savannah & Charleston remain at high capacity, as freight continues to discharge locally to avoid IPI services inland (current vessels anchored outside SE ports: 7 SAV, 7 CHS, and 2 ORF)
East Coast: Currently booking 2-4 weeks in advance.
Volume up 24% YTD pushing up drayage costs significantly as shippers move to spot rates to manage additional volume. Shippers and receivers find transloading is not an alternative to IPI in NY/NJ terminals due to the high volume of drayage in the ports.
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