Ocean Freight Market
Overview
Blank sailings via USWC continue to downtrend while USEC blank sailings ramp up. Congestion takes a toll at NY/NJ and Shanghai ports. Despite Trans-Pac trade entering the traditional peak season in June, volumes remain underwhelming as the mitigating elements of worldwide inflation, retail import tapering, Shanghai’s lockdown, and transpacific capacity growth take effect. Shanghai’s much-anticipated re-opening could prove to be the boost that carriers need for a more comprehensive application of Premium rates, but this is yet to be seen.
China Lockdown Update
Our partners advise of a gradual reopening in Shanghai, via public transportation, and places of business in Shanghai are expected June 1. South China’s demand remains stagnant as SE Asia suffers from a lack of capacity and equipment. Meanwhile, although exports remain fluid to a degree, intra-Asia feeder networks and container distribution remain severely compromised, creating vastly different market conditions around the region.
General Rate Increases (GRI)
June 1 GRI implemented with further June 15 increases likely.
Holiday Notices
Hong Kong: (Dragon Boat Festival) Offices closed June 3. Normal hours to resume June 4.
China: (Dragon Boat Festival) Offices closed June 3 through 5. Normal hours to resume June 6.
Taiwan: (Dragon Boat Festival) Offices closed June 3. Normal hours to resume June 4.
Thailand: (Queen’s Birthday) Offices closed June 3. Normal hours to resume June 4.
Cambodia: (Queen’s Birthday) Offices closed June 18. Normal hours to resume June 19.
Indonesia: (Pancasila Day) Offices closed June 1. Normal hours to resume June 2.
Korea: (Election Day) Offices closed June 1. Normal hours to resume June 2. (Memorial Day) Offices closed June 6. Normal hours to resume June 7.
Malaysia: (Yang di-Pertuan Agong's birthday) Offices closed June 6. Normal hours to resume June 7.
Philippines: (Independence Day) Offices closed June 12. Normal hours to resume June 13.
Vietnam: No June Closings.
India: No June Closings.
Airfreight Market
Overview
Despite lockdowns across China, air freight exports continue to pick up steam. As lockdowns ease in China, a spike in bookings is anticipated. Massive backlogs of freight once planned for ocean shipping are expected to be booked air in the coming weeks. Additional demand driven by the upcoming Dragon Boat Festival in China is also expected to impact booking needs.
The U.S. Market
Overview
U.S. Export booking and space issues are rising to rival import issues that have been frustrating shippers for the last 2 years. Equipment shortages and rolled bookings are the issue of the day for US exports, specifically reefer containers out of the Mid-West. Congestion continues to trend down as LA/LB seeing the lowest time at birth in 2022. Signal reporting shows average berth times at 14 days and 6.1 days as of the time of writing 6/1/22. A slight uptick in blank sailings to the US East Coast where congestion is growing worse has impacted the availability of direct-call capacity in ports such as Cai Mep, Vietnam. News that the International Longshoremen & Warehouse Union (ILWU) is seeking a break in negotiations over its soon-to-be expiring contract on July 1st with the Pacific Maritime Association (PMA) will likely spur greater demand for capacity to US East Coast ports as shippers to keep a wary eye on negotiations. Due to the high-profile nature of this year’s negotiation and the direct involvement of the current administration, the outlook for negotiations is positive. As reported by JOC - marine terminal operators in the Port of New York and New Jersey are planning new capacity for ultra-large container ships once new dredging is approved which would make New York-New Jersey one of the deepest seaports on the US East Coast.