Ocean Freight Market
Market Overview: Transpacific blank sailings remain stable. However, lockdowns and restrictions across Shanghai are likely to result in additional blank sailings into May, easing west coast port congestion. Asia-US rates have fallen by 2% to USWC & 10% to USEC since the beginning of the year. Current spot rates have started to drop below annual contract rates signed earlier in the year. Rates no doubt would have fallen further without lockdowns across Asia and provide carriers the reason to look for increases in the coming weeks.
China Lockdown Update: Shanghai had a two-phase lockdown from March 28 through April 5. the lockdowns have been extended and now cover the entire city. All terminals are experiencing limited resources and delays, as more than 70% of trucking services in and out of Shanghai are affected by local restrictions. Currently, carriers are diverting freight, specifically refrigerated containers, to alternative ports. Lockdown measures are expected to continue for the next 2-3 weeks. Although there is no official Ningbo lockdown announced, there are heightened restrictions across this area extending through Hangzhou, Wenzhou, and Jiaxing. Ningbo is facing added pressure as an alternative to Shanghai terminals. Janel Group will be monitoring and reporting these events closely for alternative solutions.
General Rate Increases (GRI): April 15 GRI not implemented with May 1 likely for partial implementation depending on the status of Shanghai lockdowns
Holiday Notice:
Hong Kong: Offices closed April 15 through 18. Normal hours to resume April 19. Offices closed May 2. Normal hours to resume May 3. Offices closed May 9. Normal hours to resume May 10.
China: Offices closed May 1 through 5. Normal hours to resume May 6.
Cambodia: Offices closed April 14 through 16. Normal hours to resume April 17. Offices closed May 1 & 2. Normal hours to resume May 3. Offices closed May 14 through 16. Normal hours to resume May 17. Offices closed May 19. Normal hours to resume May 20.
India: Offices closed April 14 & 15. Normal hours to resume April 16. Offices closed May 3. Normal hours to resume May 4. Offices closed May 16.
Indonesia: Offices closed April 15. Normal hours to resume April 16. Offices closed May 1. Normal hours to resume May 2. Offices closed May 3 & 4. Normal hours to resume May 5. Offices closed May 16. Normal hours to resume May 17. Normal hours to resume May 17. Offices closed May 26. Normal hours to resume May 27.
Korea: Offices closed May 5. Normal hours to resume May 6.
Malaysia: Offices closed April 19. Normal hours to resume April 20. Offices closed May 1 through 4. Normal hours to resume May 5. Offices closed May 15 & 16. Normal hours to resume May 17.
Philippines: Offices closed April 9. Normal hours to resume April 10. Offices closed April 14 & 15. Normal hours to resume April 16. Offices closed May 1. Normal hours to resume May 2.
Taiwan: Offices closed May 1. Normal hours to resume May 2.
Thailand: Offices closed April 13 through 15. Normal hours to resume April 16. Offices closed May 2. Normal hours to resume May 3. Offices closed May 4. Normal hours to resume May 5. Offices closed May 16. Normal hours to resume May 17.
Vietnam: Offices closed April 10. Normal hours to resume April 11. Offices closed April 30 & May 1. Normal hours to resume May 2.
Airfreight Market
Market Overview: Shanghai airfreight disruption continues as backlog cargo rises and pressure on road transport are affecting the region. Shanghai Pudong International Airport (PVG) remains operational; however, several airlines have cancelled flights. Hong Kong is lifting flight suspensions. Lockdown measures are expected to continue for the next 2-3 weeks. Rates across Europe markets remain elevated due to capacity constraints, as demand for inventory surges. However, some relief is found in reductions in fuel prices after the recent spike.
The U.S. Market
Market Overview:
Los Angeles / Long Beach is seeing its best productivity in months; reporting average wait times down to 3 days and less than 50 vessels in the queue. East coast ports continue to see stronger volumes because of the organic shift of retail volumes, less urgency to land product as soon as possible, and ILWU work action concerns. Charleston Terminals reports average wait times of 14-16 days and nearly 30 vessels at anchor. Dwell times and the backlog of vessels at major east coast ports are mixed, with New York and Savannah seeing reductions but Norfolk experiencing worsening conditions. The Charleston port backlog can be partly attributed to diversions made earlier in the year when Savannah was suffering similar congestion. Similarly, labor restrictions and vessel bunching are causing delays in Houston with wait times ranging from 2 to 11 days. Reports of equipment shortages for chassis across almost all ports and terminals. We are also seeing shortages for temp controlled freight U.S. IPI locations.
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