Ocean Freight Market
Market Overview: Transpacific blank sailings are increasing but remained below 20% of capacity through March. Lockdowns across Asia are playing a bigger role in capacity strains as opposed to demand. Market rates poised to soften are again finding resistance from COVID related strains and other force majeure incidents. The impending post-lockdown export surge in Yantian and Shanghai may strengthen carrier load factors, allowing carriers to maintain rates through April.
Covid & Lockdowns: While Shenzhen’s lockdown was lifted, terminals have imposed cargo restrictions to limit congestion after the resumption of production in the Shenzhen area. The Shanghai Pudong area entered lockdown on 3/28 and is expected to end 4/1, while Puxi (central downtown) will observe lockdowns from 4/1 through 4/5. Currently, ocean ports are open and accepting cargo with some delays.
Russia-Ukraine conflict: Carriers are discussing a sanction of Russian vessels in European ports. However, this is unlikely to effect U.S. or European freight at large with only 13 container vessels flying Russian flags. Markets affected are far east ports to China, Korea, and Japan. We will continue to monitor the situation.
Our priority remains the safety of our partners, customers, and colleagues across the region. Your Janel Group representative will reach out directly to discuss the best options for shipments affected. We are continually monitoring as the situation unfolds.
General Rate Increases (GRI): The April 1 GRI not implemented. April 15 GRI/PSS is likely to be partial or not implemented.
Holiday Notice:
Hong Kong: Offices closed April 5. Normal hours to resume April 6. Offices closed April 15 through 18. Normal hours to resume April 19.
China: Offices closed April 3 through 5. Normal hours to resume April 6.
Cambodia: Offices closed April 14 through 16. Normal hours to resume April 17.
India: Offices closed April 14 & 15. Normal hours to resume April 16.
Indonesia: Offices closed April 15. Normal hours to resume April 16.
Malaysia: Offices closed April 19. Normal hours to resume April 20.
Philippines: Offices closed April 9. Normal hours to resume April 10. Offices closed April 14 & 15. Normal hours to resume April 16.
Taiwan: Offices closed April 9. Normal hours to resume April 10.
Thailand: Offices closed April 9. Normal hours to resume April 10. Offices closed April 13 through 15. Normal hours to resume April 16.
Vietnam: Offices closed April 10. Normal hours to resume April 11. Offices closed April 30 & May 1. Normal hours to resume May 2.
Airfreight Market
Market Overview: Shanghai Pudong International Airport and all terminals are expected to reopen on April 1 to receive export cargo and release import cargo if there are no inspection requirements. Cargo inspections are expected to resume April 6th. Airlines have announced new freighter services, Asia to Europe, to supplement reduced rail options. Most US to China air services are currently embargoed due to local China lockdowns. Many carriers have announced increased fuel surcharges.
The U.S. Market
Market Overview:
Los Angeles / Long Beach is seeing its best productivity in months; reporting average wait times down to 3 days and less than 50 vessels in the queue. East coast ports continue to see stronger volumes because of the organic shift of retail volumes, less urgency to land product as soon as possible, and ILWU work action concerns. Charleston Terminals reports average wait times of 14-16 days and nearly 30 vessels at anchor. Dwell times and the backlog of vessels at major east coast ports are mixed, with New York and Savannah seeing reductions but Norfolk experiencing worsening conditions. The Charleston port backlog can be partly attributed to diversions made earlier in the year when Savannah was suffering similar congestion. Similarly, labor restrictions and vessel bunching are causing delays in Houston with wait times ranging from 2 to 11 days. Reports of equipment shortages for chassis across almost all ports and terminals. We are also seeing shortages for temp controlled freight U.S. IPI locations.
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