Ocean Freight Market
Market Overview: The freight market is delivering maximum pain for shippers as traditional peak season kicks in and carriers begin charging port congestion and additional demand-surge fees, while limiting intermodal bookings. Currently, multiple freight indices show current Asia-U.S. West Coast rates as high as $20,000 per container, six times higher than a year ago. When rates will cool down is unknown but until now there has not been an ocean capacity issue, only infrastructure problems so we expect to see rates peak alongside volume in the coming months.
General Rate Increases (GRI): August 15 GRI - full carrier announcement implemented. September 1 GRI expected.
Peak Season Surcharge (PSS): September 1 PSS announced and expected.
COVID-19 Updates: China Ningbo Meidong Container Terminal has suspended all inbound and lift-off services after a staff member tested positive for COVID-19 on Aug 10. Asia Pacific Cambodia, Thailand, and Indonesia continue to confirm cases and a range of lockdowns have been implemented. Myanmar extended their lockdown through 8/22. Vietnam 30% of Vietnam’s garment and textile factories have recently closed, affecting production for the export and on-time delivery, forcing shippers to look to China to accommodate production.
Blank sailings: Blank sailing notice for June can be found on our website (Week 33)
Thailand – Offices closed August 9. Normal hours to resume August 10.
Malaysia – Offices closed August 10. Normal hours to resume August 11. Office closed August 31. Normal hours to resume September 1.
Philippines – Offices closed August 30. Normal hours to resume August 31.
Japan – Offices closed August 9. Normal hours to resume August 10.
Indonesia – Offices closed August 11. Normal hours to resume August 12. Offices closed August 17. Normal hours to resume August 18.
South Korea – Offices closed August 18. Normal hours to resume August 19.
Airfreight Market
Market Overview: With current strains on ocean freight supply chains, it is inevitable that air freight will experience increased demand, resulting in higher prices. We expect airfreight rates to remain elevated until the end of 2021.
Trans-pacific: Authorities in Nanjing, Zhangjiajie and Zhengzhou have implemented more strict rules on transportation due to COVID-19 concerns, affecting local truckers and aviation pilots due to new testing regulations. Charter services are experiencing cancellations and China Eastern Airline has cancelled all belly flights from Aug 10th to Aug 30th from Shanghai to LAX / JFK / ORD / SFO / YVR.
Trans-Atlantic: Airfreight rates show continued strength to the Americas and Asia with a slightly higher demand into USWC.
Americas: TPWB Rates remain steady, and capacity is most strained via key hubs (LAX/ORD/JFK) as the regulation for 100% screening was implemented mid-July. Ground handlers report 3-5 days of backlog for import freight. TPEB Rates remain steady and capacity available with small constraints to EU key hubs (AMS/CGD/FRA) Trucking and warehouse capacity remain an issue with weeklong backlog at key hubs and trucking space is difficult to find at reasonable rates without ample notice.
The U.S. Market
Market Overview: Port congestion worsening, particularly at Los Angeles / Long Beach, Savannah, and Vancouver due to IPI restrictions and railway suspension.
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