Ocean Freight Market
Trans-pacific: Rates are rising as carriers announce congestion surcharges for August and Southeast Asia supply chains are hammered by Covid lockdowns. Space for IPI-bound shipments will be scaled down in the coming weeks resulting in further IPI rate spikes. Capacity injections continue via Matson services and new transpacific entrants (CUL & BCL) but the aggregate capacity deployed each week only accounts for an additional 15 percent of the capacity lost.
General Rate Increases (GRI): August 1 GRI - full carrier announcement implemented. August 15 GRI expected.
Peak Season Surcharge (PSS): September 1 PSS expected.
COVID-19 Updates: Vietnam - vessels continue to backlog across ports and terminals as Southern Vietnam remains in lockdown. Indonesia - Space remains tight on all services with an increasing backlog at ocean ports, further exacerbated by cancelled flights due to COVID-19 outbreaks. Asia - the condition in Yantian has marginally improved. However, COVID lockdowns continue to limit cargo flow from Southeast Asia as countries expand their respective lockdowns. Our partners are reporting many lockdowns across Chinese provinces where travel is completely restricted.
Blank sailings: Blank sailing notice for June can be found on our website (Week 31)
Holiday Notice:
Thailand – Offices closed August 9. Normal hours to resume August 10.
Malaysia – Offices closed August 10. Normal hours to resume August 11. Office closed August 31. Normal hours to resume September 1.
Philippines – Offices closed August 30. Normal hours to resume August 31.
Japan – Offices closed August 9. Normal hours to resume August 10.
Indonesia – Offices closed August 11. Normal hours to resume August 12. Offices closed August 17. Normal hours to resume August 18.
South Korea – Offices closed August 18. Normal hours to resume August 19.
Airfreight Market
Trans-pacific: Airfreight rates rise as capacity struggles to meet demand. PVG experiencing shutdowns, cancelled flights, and delays due to a typhoon which made the second landfall on 7/26. HAN is experiencing a capacity crunch from the Samsung push. SGN still on lockdown.
Trans-Atlantic: Airfreight rates show continued strength to the Americas and Asia with a slightly higher demand into USWC.
Americas: TPWB Rates remain steady, and capacity is most strained via key hubs (LAX/ORD/JFK) TPEB Rates remain steady and capacity available with small constraints to EU key hubs (AMS/CGD/FRA) Trucking and warehouse capacity remains an issue with weeklong backlog at key hubs and trucking space is difficult to find at reasonable rates without ample notice.
The U.S. Market
Market Overview: Port congestion worsening, particularly at Los Angeles / Long Beach, Savannah, and Vancouver due to IPI restrictions and railway suspension.
Due to equipment failure, Port of Houston at Barbours Cut and Bayport Container Terminals has been forced to temporarily close and suspend services. Vessels at terminal in progress of unloading are continued to be worked but vessels at berth will be delayed until the equipment is repaired. The Port of Houston authority has confirmed all needed parts and materials are on hand, but the repair is proving challenging. There is no announced timeline on return to normal operations at the terminals. The Port Authority confirms once the equipment is fully operational that extended gate hours and processing hours will be implemented in order to relieve any backlog.
Janel Group continues to closely monitor the market and port situation. Updates will be provided as they come available. To secure a booking or explore additional options for your supplier, please reach out to your Janel Group Representative.
Gabriel Racicot
Pricing & Commercial Support Manager