Ocean Freight Market
Market Overview: Asian lockdowns and quarantines continue to add market strain. Ningbo is slowly re-opening after being closed for a week. Ho Chi Minh City is under a ‘shelter in place’ order as the Covid situation deteriorates. The North America port situation continues to worsen with berth delays now reaching 7-9 days in LA/LB and East Coast ports with trucking lead times breeching one month. The growing concerns regarding U.S. inland rail ramps and IPI service suspension remain elevated – Chicago remains one of the only terminals for servicing the entire Midwest, resulting in extreme wait times, equipment shortages, and spikes in cost.
General Rate Increases (GRI): September 1 GRI full carrier announcement implemented. September 15 GRI expected.
Peak Season Surcharge (PSS): September 1 PSS has been fully implemented by carriers.
Carrier Premium Service: Premium rates will remain firm with slight increases over the next two weeks. However, the most substantial areas of increase have been to wholesale/co-load market rates.
COVID-19 Updates: China Ports are reopening but backlogs will ripple across all China base ports. Southeast Asian countries approach crisis levels as operational conditions in the transpacific continue to deteriorate and bottlenecks will take months to clear, regardless of demand. Myanmar extended their lockdown through 8/22. Vietnam - over 40% of factories are non-operational and most major ports in Asia are also experiencing worsening vessel congestion, with most ships delayed by an average of 3-5 days.
Blank sailings: Blank sailing notice for June can be found on our website (Week 33)
Holiday Notice:
Malaysia: Offices closed Sept 16. Normal hours to resume Sept 17.
Taiwan: Offices close Sept 18 through 21. Normal hours to resume Sept 22.
Thailand: Offices closed Sept 24. Normal hours to resume Sept 25.
Vietnam: Offices closed Sept 2 & 3. Normal hours to resume Sept 6.
South Korea: Offices closed Sept 20 through 22. Normal hours to resume Sept 23.
Cambodia: Offices closed Sept 24. Normal hours to resume Sept 25.
Mainland China: Offices closed Sept 19 through 21. Normal hours to resume Sept 20.
Hong Kong: Offices closed Sept 22. Normal hours to resume Sept 23.
Airfreight Market
Market Overview: Strains on ocean freight supply chains have started to affect air freight via increased demand. Rates will likely remain elevated through the end of 2021.
Trans-pacific: Lockdowns and quarantines add pressure as PVG suspended cargo operations on 8/20 and surrounding areas are affected via freight services using overland for the final leg. Airlines have diverted flights to avoid the backlog. That said, backlog at PVG and surrounding airports will be further affected by upcoming holidays. However, our partners advise Cargolux continues to fly to PVG on a reduced schedule and Korean Air was unaffected.
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 at key hubs (LAX/ORD/JFK). Ground handlers report 3-5 days of backlog. TPEB Rates remain steady and capacity available. Export cargo experiencing a minimum of 2-3 days tender prior to departure. Trucking remains scarce with long lead times needed to secure space for airport transfer, local pick up, and longer hauls as truckers exclude moves that do not have short turnaround times.
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.
American Hurricane Update:
We are deeply saddened to report Hurricane “Ida” made landfall on August 29 as a high-end category 4. The full extent of damage is still unknown and surveys by local authority are currently underway to evaluate.
New Orleans Terminal remains CLOSED on Tuesday, August 31st. There is no clear indication when the terminal will reopen as power will need to be restored.
Mobile Terminal gates are OPEN, but channel remains closed to vessel traffic.
JGI New Orleans is offline due to flooding and power outages. During this time, JGI Houston is assisting with urgent matters as we send our best wishes to all those affected by the storm.
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