Ocean Freight Market
Market Overview: Typical post-Lunar New Year demand slows in the Asia market; however, carriers are determined to benefit by implementing increased blank sailings. Skipped sailings reached a staggering total of 161. Adding to demand, carriers are reported to be restricting bookings for local LA-bound cargo in favor of inland rail bookings.
General Rate Increases (GRI): February 15 GRI partial implementation with March 1 GRI unlikely depending on post CNY demand.
Holiday Notice:
Cambodia: Offices closed March 8. Normal hours to resume March 9.
India: Offices closed March 1. Normal hours to resume March 2. Offices closed March 18. Normal hours to resume March 19.
Indonesia – Offices closed Jan 31 through Feb 1. Normal hours to resume Feb 2. Offices closed March 1. Normal hours to resume March 2. Offices closed March 3. Normal hours to resume March 4.
South Korea – Offices closed Jan 31 to Feb 2. Normal hours to resume Feb 3. Offices closed March 1. Normal hours to resume March 2. Offices closed March 9. Normal hours to resume March 10.
Airfreight Market
Market Overview: China to U.S. rates and demand have dropped, offering relief to shippers. TPEB flights continue to be canceled as result of Covid cases, with weak demand and falling rates. FEWB markets also experiencing rate decreases as demand continues to trail. Ramping demand in the U.S. is expected to continue into the end of February.
The U.S. Market
Market Overview:
USWC: LA/LB port congestion remains elevated despite less vessels awaiting berth (appx. 80 vessels as of today.) Terminal operators in Los Angeles-Long Beach have withdrawn their request to extend a traffic mitigation fee (TMF) only on daytime container moves.
USMW: Equipment shortages are reported across all central U.S. rail ramps. Canadian Board / Mid-West: The Ambassador Bridge between the U.S. and Canada reopened late Sunday. Two other border crossings (Coutts Alberta-Sweet Grass, Montana & Manitoba-Pembina, North Dakota) remain closed due to protests. Several railyards in Chicago have announced restricted in-gating of export containers. CP/Shiller Park has advised no export containers will be received until at least 2/16. CSX Bedford Park has indicated that they are not providing return authorizations until further notice. These closures will result in delays in return to the rail, possible yard storage for holding loaded containers and additional chassis days.
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