Air
Trans-pacific: The market has seen increases in pricing and capacity as the export industry hits full stride. The air export demand has increased sharply from last weekend, the capacity mainly occupied by electronic products and auto spare parts, heavy backlog at Shanghai Pudong airport and Beijing Intl airport. This situation will continue through till the middle of April 2021. We have seen spikes as high as 30% thus far and our partners expect the rates will continue to increase another 10% to 15% in the following weeks.
Europe:
The Trans-Atlantic market remains at elevated levels with volumes as high as two times previous months, as traffic remains strong in both directions and capacity struggles to keep up with demand. European Export demand continues to meet supply and show no sign of slowing to the Americas and Asia. Carriers are starting to implement premiums, and unless express-level rates are used to expedite cargo, our partners report booking backlogs of up to 10-12 days.
Americas:
TPWB The market continues to show strong demand in both directions for Asia and Europe. The continued lack of lower deck capacity will likely continue to keep rates elevated going into April. Bookings are seeing a backlog of 7-10 days to Europe, but for the time being, we are seeing less backlog for Asia-bound shipments.
TPEB Capacity currently available to Continental Europe and the U.K., but aircraft continue to fly at very high load factors.
Ocean
Transpacific Eastbound: Spot market pricing and premium rates remain elevated but stable at the current level. With carriers controlling supply and demand by not adding capacity to resolve the space crunch, it is likely we will see increases over the next few months. Our partners advise that space for the next 2-3 weeks is mostly booked, so advanced booking notice is essential.
General Rate Increases (GRI): Carriers have indicated they will implement the announced GRIs for April 1.
Emergency Notice: The Suez Canal passage is currently blocked in both directions due to a container ship knocked off course by strong winds and a sandstorm on March 23. The incident has created long tailbacks on the waterway, stopping vessels from passing and causing significant delays. We will monitor the situation and provide updates as available.
Peak Season Surcharge (PSS): Some carriers are reluctant to implement their announced PSS, as others implement partial increases. As 2021 demand continues to build steam it is likely we will see full PSS amounts in future months to come.
Equipment shortages remain an industry-wide challenge for all container sizes and a limiting factor for shipments out of Asia. Repositioning and in-fleeting will remain a focus for most carriers into Q2.
Equipment Returns and Import dwell time of containers: Vessels continue to sit at anchor waiting to be unloaded in the ports of LA/LB with current dwell times of 20 days & 3 to 6 days at Oakland Terminal.
The U.S. Market
Conditions at U.S. West and East coasts remain extremely congested and without improvement over the last two weeks.
Below are updates from our stations across the U.S. regarding the current rate increases, capacity issues, equipment shortages –
West Coast: Currently booking 3-5 weeks in advance. Port and trucking capacity remains at critical capacity in LA/LB ports, chassis shortage and congestion due to COVID-related stresses continue. (currently, 22 vessels anchored off the coast of LA/LB and 18 outside Oakland, with another 9 waiting outside in drift boxes)
South-West: Currently booking 1-2 weeks in advance. The port and local operations are 100% back up and running. However, some ripple effects and delays from the extreme weather are being felt in the region.
Mid-West: Currently booking 2-4 weeks in advance.
South-East: Currently booking 3-5 weeks in advance with last-minute bookings and appointment requests being nearly impossible to secure, especially at normal rate levels. The situation at the ports of Savannah and Charleston remains dire. (current vessels anchored outside SE ports: 13 SAV, 0 CHS, and 0 ORF)
East Coast: Currently booking 2-4 weeks in advance. NY/NJ experiencing 12-day dwell time on terminal for inbound rail cargo. Ports continue to be overwhelmed with volume are being pulled from certain loops and sailing schedules to avoid arrival delays (IE the port of Boston has been experiencing this issue with more frequency than others) We are also seeing local truckers raising rates to take advantage of the capacity crunch.