Rate & Market Information
Market remains quite in the past 2 weeks. All carriers have extended rates from end of Dec till 14 Jan and we expect rates to remain the same until the end of Jan due to weak demand. Market may continue to be soft after Lunar New year as production will be slow.
Carriers will continue to blank sailings and omit services and we have been seeing roll overs of containers being more frequent in the past months. MSC have reinstate “Diamond” rate scheme for space protection without roll over in January.
Fixed rate negotiation will not be available until after Lunar New Year holiday or later as carriers are reluctant to offer any rates until they have a clearer picture of the market. We do expect carriers to soften contract conditions with flexible space allocation this year. JM Rodgers welcomes any of our valuable customers to discuss with our sales team if you would be interested in a fixed rate contract for the coming season. We would need your MQC idea, commodity type, port pairs and free time requirements. JMR will work closely with carriers to negotiate for the best solution as soon as carriers starts offering annual contracts.
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THE National Retail Federation reports that container imports have dropped to their lowest levels in nearly two years prompting the retail trade association to lower its forecasts for the start of 2023 while saying that the business has returned to pre-pandemic levels.
“Ports have been stretched to their limits and beyond but are getting a break as consumer demand moderates
amid continued inflation and high interest rates,” said Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy.
OCEAN carrier voyage results could soon start appearing in red ink as freight rates flirt with breakeven levels on major east-west tradelanes.
Although the container spot rate crash appears to have bottomed-out in the past few weeks, annual contract rates are also now in sharp decline.
According to Drewry’s latest Container Insight report, carriers have “lost control of the container market” by failing to manage capacity and will “act on capacity only when they are forced to do so by heavy losses”,
reports London’s Loadstar.
Logistics managers are warning clients that because of the spike in infections, factories are unable to complete orders – even with US manufacturing orders from China already down 40 per cent due to an unrelenting demand collapse.
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