Ocean Freight Market
Market Overview: Market demand remains elevated and strained as Chinese New Year looms., We’ll likely see price surges in the short term and tapering thereafter. It is expected cargo volumes will peak over the course of the next three weeks. Our partners do not expect Spot or Premium rates to decline until March, at the earliest. The capacity crunch from blank sailings and bottlenecks has left shippers looking for reliability and predictability over price and closing trans-Pac contracts, even at elevated rates. The reported outbreaks in the port city of Tianjin, resulting in mass testing and traffic restrictions, may impact cargo from that location ahead of the Lunar New Year. However, the situation in the Beilun area of Ningbo have not deteriorated to the extent feared and are improving by the day.
General Rate Increases (GRI): January 15 GRI implementation with Feb 1 GRI unlikely depending on post CNY demand.
Holiday Notice:
Brazil – Offices closed Jan 20. Normal office hours to resume Jan 21.
Hong Kong – Offices closed Feb 1 through 3. Normal hours to resume Feb 4.
China – Offices close Jan 31 through Feb 6. Normal hours to resume Feb 7.
India – Offices closed Jan 26. Normal hours to resume Jan 27.
Indonesia – Offices closed Jan 31 through Feb 1. Normal hours to resume Feb 2.
South Korea – Offices closed Jan 31 to Feb 2. Normal hours to resume Feb 3.
Malaysia – Offices closed Feb 1 & 2. Normal hours to resume Feb 3.
Philippines – Offices closed Feb 1. Normal hours to resume Feb 2.
Taiwan – Offices closed Jan 29 though Feb 6. Normal hours to resume Feb 7. Offices closed Feb 26 through 28. Normal hours to resume Mar 1.
Thailand – Offices closed Feb 16. Normal hours to resume Feb 17.
Vietnam – Offices close Jan 31 through Feb 4. Normal hours to resume Feb 5.
Airfreight Market
Market Overview: Asia airfreight markets remain unchanged going into CNY and market participants await post CNY demand conditions. Both Beijing and Shanghai Airports are operating normally, but truck deliveries from reported areas to Beijing are restricted. Beijing is also requiring testing within 72 hours of entry, which will slow logistics in both directions. Europe capacity and demand remain manageable. Cancellations and delays due to COVID are likely according to our partners, but no congestion is reported at key European export hubs.
The U.S. Market
Market Overview:
USWC: Container and vessel congestion on both coasts has worsened. LA/LB port complex exceeded 100 vessels idling after a brief decline. LA/LB Ports have started to acknowledge the mixed signals on implementation of storage fees for long-dwell time and insist they are working behind the scenes to develop a unified approach. The temporary adjustment of LA/LB Traffic Mitigation Fee will come to an end on 1/30/22 and will revert to pre-December rates on 2/1/22.
USEC: Some carriers have decided to reinstate USEC ports of call due to anticipated volume reductions. Sailings have not yet been made available for booking as there is a 30+ day lag from Asia to U.S. ports, which are returning full manpower from the holidays. Equipment shortages, specifically 20’ chassis, are causing major delays. Lack of Hazardous certified drivers has contributed to the continued backlog of DG freight. Total number of ships idling outside all US ports is roughly 140. Congestion in the NY/NJ port complex is now growing considerably as the port deals with Omicron outbreaks affecting up to a quarter of the workforce.
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