Ocean Freight Market
Market Overview: Normalizing global demand and additional capacity appear to be the only solution for rising freight rates. There has been a clear slowdown in global container demand growth year over year from January through May. (Source: Freightwaves / Drewry) This provides a glimmer of hope for rates to normalize. That said, we are entering peak season and the stage is set for continued spikes in peak season surcharges (PSS) and general rate increases (GRI) until bottlenecks are resolved.
Trans-pacific: Carriers continue to deploy all available capacity to manage the disruptions brought on by the supply chain breakdowns. However, up to 50,000 TEU per week is still tied up in vessels waiting to berth for load/unload. Marine terminals cannot clear cargo of the importers of cargo that will have no warehouse or distribution space to put those containers. On the other side of the water, the U.S. and others cause delays waiting for adequate rail and truck capacity to move containers inland. Rates will continue to rise until these challenges are resolved.
General Rate Increases (GRI): July 15 GRI - full carrier announcement implemented. August 1 GRI full implementation is expected.
Peak Season Surcharge (PSS): Carriers are implementing the announced PSS.
COVID-19 Updates: Ho Chi Minh City has entered full "Lockdown" on July 7, 2021. Our partners in Vietnam advise their local operations and supply chain will be affected with difficulty moving province to province. Our associates in Indonesia continue to experience “micro lockdowns" as emergency rules stay in place. However, we are advised trucking operations between industrial areas and the seaports / airports are running for the time being. Yantian terminals continue to see ripple effects from closure recently, mainly due to the sharp decline of liner’s punctuality rate and the congestion of ports for several days.
Blank sailings: Blank sailing notice for June can be found on our website (Week 25)
Holiday Notice: Please note the below closures to be observed by overseas agents.
Airfreight Market
Trans-pacific: Airfreight rates remain elevated as capacity struggles to meet demand. PVG and PEK are not experiencing any backlog, but cargo remains strong – demand and rates likely to pick up as we move towards peak season.
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.
Trucking and warehouse capacity remains an issue, especially at key U.S. Hubs: LAX, ORD, JFK, Etc.
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 continue to make progress in congestion, with only 8 vessels at anchor and import volumes seeing signs of slowing with 15-20% increases through July 24. However, all WC ports are experiencing a lack of rail capacity and equipment shortage. (LA/LB Port Status Source)
South-West: Currently booking 1-2 weeks in advance.
Houston continues to see minimal congestion with exception of freight routed MLB.
Mid-West: Currently booking 2-4 weeks in advance.
Railyards continue to run out of land to store containers. Massive Chassis shortage continue with all terminals experiencing turn-times 30-40% longer than last year, (directly affecting cost via greater wait times)
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.
East Coast: Currently booking 2-4 weeks in advance.
Drayage rates continue to climb as the shortage of trucker availability soar.
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