Ocean
Capacity and space remain tight with an average vessel capacity of 100% in mid-October. Many carriers are adding sailings and vessels to meet holiday and peak season demand. Capacity and space strains are expected to remain steady. With strong demand, a few ocean carriers are implementing a small General Rate Increase effective November 1.
Equipment shortages, across all carriers continue to persist across China base ports, particularly Shanghai.
Air
All Asia origins are experiencing peak season conditions with rates increasing daily. Asia-US capacity is extremely tight. As new products launch, demand for PPE returns, and airlines continuing to offer priority booking slots, the market is expected to remain tight into December.
U.S. Market
Los Angeles and Long Beach ports have reported significant congestion over the last several weeks. A chassis shortage has caused a persistent backlog of containers pending pick-up. The return of empty containers has also been impacted, as terminals struggle to optimize storage space while turning around boxes. Expect longer turnaround times, for containers terminating in LA/LB and those moving inland via rail services.
The congestion is expected to continue through year’s end.
Additionally, multiple US terminals and offices are closing as Hurricane Zeta makes landfall. Domestic operations are expecting further delays as ports and terminals recover.
Janel continues to monitor these situations and will provide more information as details unfold. If you have questions regarding any of these matters, please reach out to your Janel Group Account Representative.