International shipping and logistics market

1. Shipping route: Asia - North America (Asia - North America)

Demand on the Asia-North America route is forecast to be strong ahead of the Lunar New Year, as importers scramble for space for bookings in the coming weeks.

Increased demand and reduced capacity keep freight rates high.

High demand is expected to kick off for the 2022-2023 contract negotiation season.

Congestion at the ports of Los Angeles/Long Beach and Savannah remains severe and is expected to worsen in Vancouver due to recent flooding.

Port congestion and vessel shortages continue to negatively affect schedule capacity and reliability.

- Ocean Freight: Some shipping lines have applied a general rate increase surcharge (GRI) since mid-November; and is expected to apply again in early December. Rates are still increasing and demand for premium services is still very high.

- Space: Lack of seriousness

- Empty container equipment: Serious lack of equipment.

Recommendation:  Shippers should continue to book at least 4-6 weeks before the scheduled departure date for the best chance of securing. Shippers consider choosing to deliver at coastal destinations instead of inland due to connection delays between shipping methods.

2. Shipping route: Asia - Europe (Asia - Europe)

Container space and equipment remained in short supply for a long time. Market demand has consistently outstripped supply, and freight rates have been skyrocketing for quite some time.

The seating situation was made worse by many train cancellations and lack of equipment. Shipping lines have received too many bookings in the past and are limiting the acceptance of new bookings.

With many ships being delayed and many shipments being changed, the reliability of the current schedule is very low.

Power shortages are affecting factory operations to a certain extent and causing more changes in transportation plans.

- Ocean Freight: Although freight rates are still at a record high, they have stabilized in November. Most shipping lines have extended the application of premium rates. There are a few shipping lines that have adjusted their prices slightly.

- Space: Lack of seriousness

- Container equipment: There is a serious shortage in all Asian countries.

Recommendation:  Shippers should make reservations at least 4-5 weeks before the scheduled departure date. Consider choosing a guaranteed service and have the flexibility to choose replacement equipment when needed.

3. Shipping route: North America - Asia (Northern America - Asia)

Vessel arrivals and available capacity remained stable for US West Coast ports. The capacity of ports on the East Coast of the United States has improved.

The integrity of the reliability of the schedule is degraded. Many ship cancellations and delays present significant challenges for shippers.

- Ocean Freight: The General Rate Increase (GRI) surcharge is fully applied by the shipping lines for both dry and refrigerated cargo in November. During December, GRI is likely to be implemented for the shipping lines. Port of destination in India and Australia.

- Space: Scarcity for West Coast ports, but improved in US East Coast ports.

- Container equipment: The shortage of container equipment is still causing difficulties for goods transported from within the US, especially at major ports.

Recommendation: Shippers make reservations at least 4-6 weeks before the scheduled departure date.