Ocean Freight Market
Market Overview: Market demand remains elevated due to bottlenecks, blank sailing, and continued pandemic-related issues. Carriers have increased the number of operational blank sailings by as much as 30% of January’s capacity. However, space availability was not as critical as initially expected. Blank sailings are likely to remain at very high levels in February as carriers seek to take advantage of the lull in demand to reposition vessels and therefore recorrect schedules. U.S. congestion remains a key issue causing ripple effects across all markets as 200 plus containerships idle at anchor outside U.S. ports.
General Rate Increases (GRI): February 1 GRI partial implementation with Feb 15 GRI unlikely depending on post CNY demand.
Holiday Notice:
Brazil – Offices closed Jan 20. Normal office hours to resume Jan 21.
Hong Kong – Offices closed Feb 1 through 3. Normal hours to resume Feb 4.
China – Offices close Jan 31 through Feb 6. Normal hours to resume Feb 7.
India – Offices closed Jan 26. Normal hours to resume Jan 27.
Indonesia – Offices closed Jan 31 through Feb 1. Normal hours to resume Feb 2.
South Korea – Offices closed Jan 31 to Feb 2. Normal hours to resume Feb 3.
Malaysia – Offices closed Feb 1 & 2. Normal hours to resume Feb 3.
Philippines – Offices closed Feb 1. Normal hours to resume Feb 2.
Taiwan – Offices closed Jan 29 through Feb 6. Normal hours to resume Feb 7. Offices closed Feb 26 through 28. Normal hours to resume Mar 1.
Thailand – Offices closed Feb 16. Normal hours to resume Feb 17.
Vietnam – Offices close Jan 31 through Feb 4. Normal hours to resume Feb 5.
Airfreight Market
Market Overview: Asia airfreight markets remain elevated with some spikes across regions most affected by COVID lockdowns and constraints. 5G network implementation has caused some airlines to cancel US services as the FAA issued an order prohibiting poor weather landings for certain airports. Our partners advise elevated rates to remain across all Asia markets through February. Europe demand elevated for 2022 with slight rate increases.
The U.S. Market
Market Overview:
LA/LB port congestion remains with over 100 vessels anchored at any given time while idle ships have increased across Oakland, Charleston, New York, and Savannah. Trucking rejection rates hover around 20% for 2022 versus the 5% seen in 2020 pointing to the lack of capacity to meet current demand. Productivity via USEC & USWC remains low due to reduced workforce, as well as general chassis and truck shortages which are being seen across all U.S. markets.
On a positive note, carriers have been reporting improved rail dwell times on the west coast, with an average of 3.5 days dwell, down from 9 days in early November. LA/LB congestion penalties have been pushed back (again) and our partners report it is unlikely to see implementation altogether. U.S. container yards and rail ramps are trying to restore cargo fluidity that has been disrupted from punishing rain and snowstorms hitting key hubs.
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