Ocean Freight Market
Market Overview: Spot rates and “Premium” service costs continue to skyrocket as capacity, equipment shortages, and pressure at major ports remain in unprecedented conditions. Our partners continue to increase booking lead time recommendations, currently a minimum of 4-6 weeks in advance of cargo ready date.
Trans-pacific: The combination of limited available space, blank sailings, congestion disruptions, port call omissions and IPI refusal, equals big challenges for TPEB. Carriers continue to meet the unprecedented market demand and strain with rate increases.
Trans-Atlantic: Ripple effects from strains on the supply chain in Asia are disrupting capacity impacted by blank sailings and port omissions made by carriers to restore standard schedules. We are seeing a slight improvement in equipment availability in Northern Europe but shortages at inland depots will continue until disruptions are resolved.
General Rate Increases (GRI): June 15 GRI - full carrier announcement implemented & July 1 GRI expected.
COVID-19 Updates: Yantian International Container Terminals’ (YICT) has restarted limited operations on Thursday, easing pressure on the terminal but doing little to address the congestion that has spread across South China over the past two weeks. Our partners are reporting a median dwell time in Yantian of about 18 days.
Operational blank sailings: Outside of the 11 announced blank sailings (JOC), the obstruction in Yantian will likely mean additional blank sailings in June & July from Yantian & Hong Kong to the U.S.
Holiday Notice: Cambodia H.M Queen Monineat Sihanouk's Birthday - June 18th, 2021.
Airfreight Market
Trans-pacific: Rates remain elevated and with no end in sight due to ocean service challenges, we anticipate airfreight rates remaining elevated through Q3, 2021.
Trans-Atlantic: Market demand shows continued strength to the Americas and Asia. Capacity into North America had little to no additional space added over the past month. Space in and out of many Asian regions continues to experience strain due to lockdowns.
Americas: TPWB Market continues to show strong demand in both directions for Asia and Europe with little change from previous weeks. TPEB Capacity is currently available to Continental Europe and the U.K., but aircrafts continue to fly at high load factors and remain unchanged over previous weeks.
The U.S. Market
Market Overview: West and East Coast ports remain congested with a further stain from supply chain issues abroad and locally, due to carriers avoiding IPI service into inland rail ramps.
West Coast: Currently booking 3-5 weeks in advance.
Port and trucking capacity remains at critical capacity in LA/LB ports as chassis shortages and congestion stresses continue. (Currently, 29 vessels anchored off the coast of LA/LB and 14 outside Oakland)
South-West: Currently booking 1-2 weeks in advance.
Houston continues to see minimal congestion with the exception of freight routed MLB.
Mid-West: Currently booking 2-4 weeks in advance.
Chassis and equipment shortages in select rail ramps increase as carriers push freight into Chicago to avoid IPI to other Mid-West rail ramps.
South-East: Currently booking 3-5 weeks in advance.
The ports of Savannah & Charleston remain at high capacity, as freight continues to discharge locally to avoid IPI services inland (current vessels anchored outside SE ports: 7 SAV, 7 CHS, and 2 ORF)
East Coast: Currently booking 2-4 weeks in advance.
Port and trucking capacity remains at critical capacity in NYC port terminals as chassis shortages and congestion stresses continue. (Currently, 18 vessels anchored off the coast of NYC)