Ocean Freight Market
Market Overview: Carriers are facing their first post-pandemic supply/demand test as demand continues to slow after Chinese New Year. Tapered blank sailings and extra loaders contribute to a cooling market. Rates remain elevated still not catching up to the lull in demand yet, but spot over premium-priced bookings for TPEB are likely to become more available in the coming weeks. This trend is likely to continue through March, specifically involving U.S. IPI locations.
COVID lockdowns across North and Southeast Asia are having little effect on ocean exports and our partners across Vietnam report a slow return to normal.
Russia-Ukraine conflict: The sudden escalation in Ukraine is disrupting products and services via the Black Sea area and Russia. Many carriers and airlines have cancelled services to comply with the sanctions and restrictions being imposed on Russia. Our priority remains the safety of our partners, customers, and colleagues across the region. The pressure on ports and terminals will add to the existing supply chain challenges. Your Janel Group representative will reach out directly to discuss the best options for shipments affected and we will continue to monitor as the situation unfolds.
General Rate Increases (GRI): March 1 GRI partial implementation. A March 15 GRI is unlikely depending on geopolitical factors.
Holiday Notice:
Cambodia: Offices closed March 8. Normal hours to resume March 9.
India: Offices closed March 1. Normal hours to resume March 2. Offices closed March 18. Normal hours to resume March 19.
Indonesia – Offices closed Jan 31 through Feb 1. Normal hours to resume Feb 2. Offices closed March 1. Normal hours to resume March 2. Offices closed March 3. Normal hours to resume March 4.
South Korea – Offices closed Jan 31 to Feb 2. Normal hours to resume Feb 3. Offices closed March 1. Normal hours to resume March 2. Offices closed March 9. Normal hours to resume March 10.
Airfreight Market
Market Overview: Airfreight volume out of SE Asia experienced a steady decline, specifically on transshipment traffic lanes. However, our partners predict March volumes to spike with the traditional peak season for electronics and tech cargo. Lockdowns in Suzhou will cause further strain, as Suzhou is a manufacturing hub for semiconductor companies. EU Markets continue to maintain stable rates with the exclusion of fuel surcharge increases as the IATA jet fuel index hits the highest rates since 2015.
The U.S. Market
Market Overview:
The number of vessels at anchor/drift outside LA/LB has been reported at the lowest levels since early October. Ports of New York / New Jersey continue to experience Covid related strains resulting in longer turnaround times. The Port of Charleston issues an export embargo for loads in the Wando Welch Terminal as it struggles with a shortage of terminal space and backlog of more than 30 vessels anchored outside its harbor. The U.S. trucker convoy swells from 150 to 250 trucks as it moves across the country from California to Washington, which will add to local bottlenecks in an already overextended market.
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