Freight Market Update | Week 32
OCEAN FREIGHT
Asia to North America (Transpacific Eastbound)
Challenges remain as carriers restrict and limit bookings on specific routings, mainly on IPI corridors.
Ningbo terminal shutdown underscores the disruptions that continue to affect a constrained market.
August 15 GRI implemented.
Space availability is critical, severe undercapacity.
4-6 weeks booking in advance is recommended.
Consider terminating cargo at destination coastal ports to prevent intermodal delays.
North America to Asia
Space is incredibly tight for USWC POLs.
Capacity has improved from the USEC to Asia.
September 1st GRIs expected to be implemented.
Equipment deficits are still plaguing IPI origins.
Book 4 weeks in advance.
North America to Europe
There is excess capacity on the TAEB trade with carriers looking for cargo.
Rates remain steady.
Standard equipment availability at port is manageable, but any special equipment is hard to come by.
Book at least 4 weeks in advance.
Europe to North America (TAWB)
Service disruptions to USWC and rail network to continue.
Sep 1 GRI likely to be implemented.
No further blank sailings announced but capacity remained the same despite the demand.
Space is critical
Capacity is tight and guaranteed only with Premium rates.
Book 5 weeks in advance.
Asia to Europe
Rates remain at a record high level but have stabilized in August. Numbers might increase due to the temporary terminal closure in Ningbo.
Space and equipment crunch continues.
Schedule reliability is low, overcommitted booking acceptance.
Capacity is extremely critical.
Severe equipment shortage across all Asia origins.
Book at least 4 -5 weeks in advance, consider premium options.
India to North America
Rates remain high as congestion and omissions increase.
Expecting rates to continue to increase through September
Equipment is an issue across India. Inland Container Depots are seeing the worst of the equipment shortage due to the difficulty of repositioning.
Space is critical to USWC from all ports of loading in the ISC region.
Use premiums on urgent shipments and shipments with CRD approaching.
North America to South America
California congestion nears new high, East Coast gridlock worsens.
Port congestion on both coasts is likely to cap the second half of the year US import capacity.
HSUD GRI for the Central Coast of South America (USD 150/Teu) effective September 1.
Lisbon airport had some strikes, although the Situation in LIS is normalized TAP continues with some overbooked flights like Lisboa - Santos, and Lisboa - Rio de Janeiro.
U.S.A trucking remains scarce for Drayage especially for special loads like refrigerated and any other loads that require special trucks.
AIR FREIGHT
Asia
Due to the recent wave of Covid in China, stringent control measures have been implemented at PVG.
Lack of manpower and increased turnaround times for both inbound and outbound cargo.
Rates are expected to increase should restrictions continue.
Europe
Volume is quieter due to Summer vacations in Europe.
Rate levels remain stable.
Some disruption expected for imports into Northern China due to the Covid restrictions.
Terminal congestion is better for both import/export.
Some delays remain at US ground handler terminals in ORD/JFK/LAX.
Americas
Export demand from the U.S. remains very steady and stable while US air export capacity has temporarily decreased.
LAX/ORD/JFK ground handlers facing large backlogs are using off-airport facilities to manage the flood of cargo.
Ground handlers report 2 to 5 days of backlog to break down import freight.