Rate & Market Information

FAK rates remain well above historical averages, and most carriers have decided to maintain current level till the 14 December. Carriers such as ONE, HPL, CMA and COSCO will stop accepting USWC BP cargoes on some services starting in Mid-December. Since a lot of vessels are stuck outside US ports, there will be additional blank sailings in December. We have been utilizing other new carrier options with extra spaces and equipment. CUL is improving their services with decreased average dwell time at LA/LGB ports to 30 days which is much less than THEA and 2M carrier.

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Port / Space / Equipment Conditions

Blank Sailings in the coming weeks

Top 6 Origin Ports with most blank sailings from week 47 to week 52

 Space situation ex South East Asia 

Vietnam

MSC:
HPH: 100% Diamond Tier Space only
HCM – USWC release per ratio DT/FAK 2/1 while 100% Diamond Tier space to USEC

ONE/YML/HPL/HMM:
PN2/FP2/PS3: Blank sailing on week 48 EC6/WK48 slide to w49 PS3/WK49 slide down to W50 FP2/PS3/EC5: Blank sailing on week 50

COSCO/CMA/EMC:
CPNW: Blank sailing on week 48
DAH/OPNW: Blank sailing on week 49
PEX3/GME2/CPNW: Blank sailing on week 50 CJX/SEA2: Blank sailing on week 51

ZIM: extremely shortage space from HPH due to no feeder vessel

Thailand

Overall space is full till 3rd week of DEC. Mostly carriers can offer only premium but still subject to space available. Need 4-6 weeks to arrange booking in advance. 12 blank sailings from week 49 to 51.

ONE/CMA/Cosco/ZIM limited space allocation. MSC release all space under premium only.

Equipment situation: All carriers’ equipment are tight. 40HC is very short for CMA/ONE/Cosco. Limit CY date only 7 days before ETD. Not allowed to pick up container in advance even agree to pay Detention charge.

Indonesia

All shipments are rolling on average 3 weeks or more, even for carrier’s premium services. All spaces to both USWC and USEC are fully booked till end of December.

Korea

All carriers’ equipment still tight at Busan where we see heavy port congestion with a delay of 5-6 days. All spaces are fully booked till end of December.
Blank sailings:
WK49(PS6:TBA, PS8:TBA, TP12/Empire/ASUS2/ZBA:TBA)
WK51(TP11/Elephant/ZNF:TBA, TP88/Pelican/ASUS6/ZGX:TBA)

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Service Updates

Feeder suspension in South China for 6 weeks before 2020 Lunar New Year

Both Hapag-Lloyd and ONE have noticed that feeder operators will suspend services from late December until mid-February. This suspension is caused by the COVID-19 quarantine rules for ship crews who are facing quarantines of up to seven weeks before getting home for Chinese New Year in the first week of February 2022. Carriers will temporarily s suspend cargo acceptance to South China (Pearl River Delta Area and Fuzhou). The South China main ports on mainline services such as Hong Kong, Yantian, or Shekou will not be affected. We expect cargo from side ports in south China might see an earlier pre-lunar new year surge than usual. Please keep this in mind and plan your cargo at earlier time. (To view the full list of feeder ports, including the feeder suspension period, please click HERE  )

Bunker surcharge hikes in December

As oil prices surge, shippers are now facing soaring bunker surcharges. The degree of increase may be nothing compared to current high freight rates, but it may trigger an uplift in ocean carrier fuel mechanisms, increasing Bunker surcharges in the next few months.

“Emergency Fee” Surcharge – postponed to November 29, 2021

The Fee has been postponed through November 29th, and may update when container dwell data are reviewed once again. Below is the latest update from carriers.

Containers on the terminal as of 29 November 2021 (that are past the dwell times of 8 days for Import – truck Moves and 5 days for Intermodal Import – Rail)

For all existing overdue import containers (regardless of the number of days that they have been at the terminal), November 29 will count as the 9th day (or 6th day for intermodal) and the charge will start at USD 100.

Containers discharging after November 29

The charge will be applied fully as per the structure: USD 100 per container on day one, and increase by USD 100 per container for each additional day until out-gated from the terminal, based on calendar day, and there is no maximum cap set.

Market News

Berthing challenge for new transpac carriers arriving on the west coast

Matson and Ocean Alliance member containerships arriving at the heavily congested US west coast hub ports of Los Angeles and Long Beach are getting worked well ahead of their competitors, according to an Alphaliner survey. 

Analysis by the consultant of the transit times of 62 import vessels, taken from the last Asian port of loading to berthing at LA and LB terminals during the two-week period from 5-19 November, ranged from a total transit of just 10 days to a colossal 73 days. 

READ MORE

South China feeder services set for decline, thanks to harsh Covid restrictions

China’s quarantine rules for seafarers are set to cause a big drop in Pearl River Delta feeder capacity in the run-up to Chinese New Year (CNY) in February.

Both ONE and Hapag-Lloyd have issued advisories warning of disruption from late December to mid-February, after feeder operators announced service suspensions due to a lack of crew.

Read More

Reading the post-CNY container market can be a risky business

Daily container-ship arrivals down 10% in November versus September. Amid all the headlines on consumer demand, imports to America’s primary container gateway — the ports of Los Angeles and Long Beach — have sunk back to pre-COVID levels, not only due to congestion stranding massive amounts of cargo offshore, but also due to a pullback in ship arrivals that’s being obscured by the congestion story.

Read More

The above information is for reference only. However, should you have any inquiries, please do not hesitate to contact us. 

For rate inquiries: jmr-rates@jmrodgers.com | For export operations & inquiries: jmr-export@jmrodgers.com | For ISF submission and status inquiries: jmr-isf@jmrodgers.com | For import operations & inquiries: jmr-docs@jmrodgers.com | For traffic-related issues: traffic@jmrodgers.com 

Disclaimer 

Although J.M. Rodgers Co., Inc. (JMR) makes reasonable efforts to obtain reliable content, JMR does not guarantee the accuracy of or endorses the views and opinions given by any third-party content provider. JMR disclaims all responsibility for any mistakes or inaccuracies in the information. Further, JMR disclaims all liability for loss or damage resulting from the use of information in this newsletter. 

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