Ocean Freight Market
Market Overview: Bottlenecks continue to cause capacity strains, but rates seem to have reached a price ceiling as carriers slow spot increases in response to push back. (CMA announcement) However, it remains unseen if any respite from premium service rates will be offered.
General Rate Increases (GRI): September 15 GRI some carriers implemented announced GRI. October 1 GRI will likely have another partial or no implementation.
Carrier Premium Service: Premium rates remain firm but further increases over the next two weeks are unclear.
COVID-19 Updates: Areas across SE Asia remains on lockdown; China trucking precautions continue to impact flow from inland locations. A Myanmar lockdown extension appears imminent as partners are still unable to accept bookings. Vietnam continues to experience extreme disruption from continued lockdowns.
Blank sailings: Blank sailing notice for June can be found on our website (Week 38)
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. Offices closed Oct 9 through 11. Normal hours to resume Oct 12.
• Thailand: Offices closed Sept 24. Normal hours to resume Sept 25. Offices closed Oct 13. Normal hours to resume Oct 14. Offices closed Oct 22 through 23. Normal hours to resume Oct 24.
• 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. Offices closed October 19. Normal hours to resume Oct 20.
• Cambodia: Offices closed Sept 24. Normal hours to resume Sept 25. Offices closed Oct 5 through 7. Normal hours to resume Oct 8. Offices closed October 15. Normal hours to resume Oct 16.
• Mainland China: Offices closed Sept 19 through 21. Normal hours to resume Sept 20. Offices closed Oct 1 through 7. Normal hours to resume Oct 8.
• Hong Kong: Offices closed Sept 22. Normal hours to resume Sept 23. Offices closed October 1. Normal hours to resume Oct 2. Offices closed October 14. Normal hours to resume Oct 15.
Airfreight Market
Market Overview: The market remains mostly unchanged from the last update, outside weather related increases TPEB services.
Trans-pacific: Lockdowns and quarantines add pressure as PVG suspended cargo operations on 8/20 and surrounding areas are affected via freight services that use overland for final leg. Airlines (PO, QR, etc.) are diverting flights to avoid the backlog. That said, backlog for PVG and surrounding airports will be further impacted by Holidays (Mid-Autumn Festival is from Sept 19 to 21, National Holiday is from Oct 1 to 7) However, our partners advise Cargolux continues to fly to PVG on a reduced schedule and Korean Air service was unaffected.
Trans-Atlantic: Rates remain steady. As demand has slowed, it is likely the market sees an airline PAX capacity decrease that would cause slight rate increases - regardless of the fabricated squeeze, it is likely airlines less reliant on PAX freight will hold rates through September.
Americas: TPWB Rates remain steady, and capacity is most strained via 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 longer than normal lead time needed to secure space for airport transfer, local pick up and especially longer hauls as truckers can exclude moves that do not have short turnaround times.
The U.S. Market
Market Overview: Port congestion is worsening, particularly in 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