Ocean Freight Market
Blank sailings stabilize as carriers begin to accept slower volume growths. Regardless, shipping alliances prepare to cancel more of their sailings in the coming weeks & months. Reports of “free-falling” index data show rates still have declined by between only 1-3% since Lunar New Year. Many reports continue to call for the coming wave of freight, but volume data continues to decline, and carriers are likely to continue reducing rates.
General Rate Increases (GRI): May 15 GRI partially implemented with further June 1 increases likely.
Airfreight Market
Both Shanghai airport and port remain operational, with Waigaoqiao port and warehouse reopening as of Monday morning. Our partners advise flight capacity has improved slightly compared to previous weeks. Rate levels remain steady with increases likely over coming weeks. Trucking cost remains elevated level. Beijing’s government has encouraged working remotely and staying at home during the coming weekend, but no formal plans for lockdown at this time.
U.S. Market
Congestion has largely improved on the WC down to sub 20 vessels at anchor outside LA/LB ports and an average berth time of 2.7 days. Source. However, rail service transshipment from the port of Los Angeles to inland ramps is experiencing congestion and delay. WC port officials are preparing for the upcoming labor contract negotiations which could leave dockworkers short-staffed, reduce port efficiency, and longer vessel queues, right in line with Shanghai’s lockdown lift. Vessel congestion continues to rise in USEC ports with some improvements to New York, Savannah, and Charleston. The main issues across U.S. ports and rail ramps remain container and equipment shortage with challenges in empty container returns. As a result, CMA-CGM has announced plans to implement an incentive program designed to encourage the early return of empty containers. Source. The program will give customers returning empty containers early a $300 credit per dry container to either the FMS terminal in Los Angeles or one of four CMA CGM return locations across the country (Chicago, IL; Dallas, TX; Kansas City, KS; and Memphis, TN).
China Lockdown Update
Shanghai lockdown extended, and COVID-related disruptions are likely to persist through 2022. Shanghai’s ongoing lockdown continues to present major headwinds for a market that is on the cusp of its traditional peak season. There is some sentiment that restrictions like those ongoing in Shanghai could persist in China for the remainder of the year. The original goal for Shanghai’s reopening was the May Labor Day holiday has been pushed back to the early-June Dragon Boat holiday, pending further delays as conditions are closely monitored by local government officials.
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: (Dragon Boat Festival) Offices closed June 3. Normal hours to resume June 4.
Cambodia: (Cambodian New Year) Offices closed May 14 through 16. Normal hours to resume May 17. Offices closed May 19. Normal hours to resume May 20. Offices closed June 8. Normal hours to resume June 9.
Indonesia: (Ascension Day) Offices closed May 26. Normal hours to resume May 27. (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.
Janel Group continues to closely monitor global logistics and freight markets. Updates will be provided as they come available. To secure a booking or explore additional options for your supply chain, please reach out to your Janel Group Representative.
Gabriel Racicot
Pricing & Commercial Support Manager