Ocean Freight Market
Carrier blank sailings to the US West Coast hit over 20% of total trade capacity. Meanwhile, demand surged in final weeks of April in preparation of a weeklong holiday and closures in China. As reduced capacity failed to meet increased booking needs, FAK rates remained steady through April and had full implementation of a May 1 GRI. Our partners project a June 1 increase via PSS/GRI is likely as the delta between FAK & contract rates is now quite significant. Ningbo and Shanghai ports reported shortages of container equipment. As carriers reintroduce services, and rebalance equipment, spot market conditions are expected to improve in the coming weeks. Recovery of retail markets in the USA cast a hopeful light on the remainder of the year.
Panama Canal Authority report rising water levels in the Gatun Lake, a crucial source of water for the canal. Operations of the canal have already begun to allow more vessels. As water levels continue to recover in the lake, it is projected Panama Canal routings to become more stable and allow for regular transit times. Suspended loops utilizing the canal are expected to return to full service.
Trans-Pac General Rate Increases (GRI)
May 1 GRI announced and implemented in full.
May 15 PSS announced but unclear.
June 1 GRI announced.
June 1 PSS announced.
Airfreight Market
Air rates remained steady through the end of April and into May. Steady e-commerce and retail demand stabilized the market despite geo-political factors. It is expected air rates will increase post-holiday as delayed shipments dominate bookings.
Holiday Notices
Hong Kong: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Buddha’s Birthday) Offices closed May 15. Normal hours to resume May 16.
China: (Labor Day) Offices closed May 1 through 5. Normal hours to resume May 6.
Taiwan: (Labor Day) Offices closed May 1. Normal hours to resume May 2.
Malaysia: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Waisak Day) Offices closed May 22. Normal hours to resume May 23.
India: (Labor Day) Offices closed May 1. Normal hours to resume May 2.
Indonesia: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Ascension Day) Offices closed May 9 & 10. Normal hours to resume May 11. (Waisak Day) Offices closed May 23 & 24. Normal hours to resume May 25.
Korea: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Children’s Day) Offices closed May 6. Normal hours to resume May 7. (Buddha’s Birthday) Offices closed May 15. Normal hours to resume May 16.
Philippines: (Labor Day) Offices closed May 1. Normal hours to resume May 2.
Thailand: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Coronation Day) Offices closed May 6. Normal hours to resume May 7. (Visakha Day) Offices closed May 22. Normal hours to resume May 23.
Vietnam: (Labor Day) Offices closed May 1. Normal hours to resume May 2.
United States: (Memorial Day) Offices closed May 27. Normal hours to resume May 28.
The U.S. Market
Overview
Port of Baltimore opened a third option to carriers to allow barge access to terminals. Depth of available options to Baltimore’s terminals remain too shallow to allow for container vessel access. Surrounding ports continue to support Baltimore as carriers focus on rerouting sailings during bridge repairs. The US Department of Transportation has coordinated efforts with local port authorities to mitigate supply chain disruptions.
International Longshoreman Association (ILA) President announced the union would not work beyond the contract expiration. The union president set a deadline of May 17 to address local issues as a preliminary step towards a broader agreement. It remains unclear if a new deal will be completed before the contract’s September expiration. Those close to the negotiations predict labor issues are unlikely.
USWC: Congestion and higher volumes reported. Estimated 7 days needed for vessel to rail transfer.
USEC: Congestion reported in ports with Baltimore diverted traffic. Congestion expected to continue indefinitely.
USMW: Good conditions reported, volume increases reported.
USSW: Good conditions and low congestion and lower volumes reported.
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.