Ocean Freight Market
Market Overview: Carriers are reporting a surge in volume under Premium bookings as the second peak season of the transpacific tradelane approaches. Operational blank sailings continue offsetting any capacity growth the market has achieved in the past 12 months as carrier announce almost 27% of slot-capacity already canceled in December.
The pre-Lunar New Year cargo surge is beginning with tighter space conditions than two weeks ago, pressuring rates. Demand is being driven by big box retailers and their suppliers, reporting 10,000 to 25,000 FEU-worth of order backlog. The co-load market is soaring as shippers scramble for available space ahead of the holiday with lead times over 4 weeks now.
General Rate Increases (GRI): The December 15 GRI will be fully implemented, with an additional January 1 GRI likely.
COVID-19 Updates:
China - Output could be affected in the coming weeks and months if Omicron outbreaks are detected. Freight demand remains robust as production activity has increased during the second half of November and is expected to continue through December. Vietnam - Capacity remains strong and container equipment availability in North Vietnam is strained. No lockdowns have been implemented over the last 4 weeks and capacity struggles to meet demand.
Blank sailings: Operational blank sailings will be one of the key contributing factors in the market over Q4 – Current notices from the carriers can be found on our website (Week 50)
Holiday Notices:
• Malaysia: Offices closed Dec 25. Normal hours to resume Dec 26.
• India: Offices closed Dec 25. Normal hours to resume Dec 26.
• Philippines: Offices closed Dec 24 & 25. Normal hours to resume Dec 26. Offices closed Dec 30 & 31. Normal hours to resume Jan 1.
• Hong Kong: Offices closed Dec 25 through 27. Normal hours to resume Dec 28.
• Indonesia: Offices closed Dec 25. Normal hours to resume Dec 26.
• Thailand: Offices closed Dec 31. Normal hours to resume Jan 01.
Airfreight Market
Market Overview: Airfreight rates have continued to climb over the last 4 weeks but might have hit their inflection point out of greater China. Available space remains very tight due to flight cancellations. Airlines have shortened validity on all rates as service becomes entirely reliant on space and availability. Further increases are yet to be seen but expected.
The U.S. Market
Market Overview: U.S. port bottlenecks remain the key issue for shippers with Los Angeles and New York exemplifying the trend. Ports of Oakland, Seattle, Savannah, and others may see slight decreases in 2-week trends. Many ports have found investing in infrastructure the key to clearing bottlenecks. The recent addition of a 100-foot-gauge container gantry crane at the port of New Orleans that will have a major effect on MSY port volume and managing volume at surrounding ports.
Trucking availability by CY/Ramp has become impossible to track due to rapidly changing market data. A majority of truckers have moved to spot only based on current capacity. Please contact your local representative for further information on specific location.
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