Ocean carriers expect import demand to remain strong through October. Forecasts also show continued demand in 4th quarter of 2020. The surge in volume is heaviest in LA/LB, where many retailers and e-commerce importers have concentrated their shipments. Canceled sailings have stopped and carriers have been adding unscheduled vessel departures from Asia, at a rapid pace.
Equipment shortages in Asia continue to worsen as importers in the United States and Europe struggle to return empty containers to Asian manufacturing hubs. With containers of all sizes in short supply, carriers are ending free-time extensions.
Pricing from Asia to the US West Coast is up 3.3 percent from last week and 140 percent from the same week a year ago, according to the Shanghai Containerized Freight Index. The Asia - US East Coast is up 7.9 percent sequentially and 72.5 percent year over year.
The JoC reports, that airfreight volumes from Asia, driven by online shopping, are also rising. Demand continues to outpace the available capacity, though, in August, it was down 19 percent year over year. Much of the passenger fleet, which provides half the trans-Pacific cargo capacity, remains grounded with travel restrictions imposed because of the coronavirus. The supply-demand imbalance is keeping rates at elevated levels.