Rate & Market Information

Space situation remains tight with further blank sailings and vessel delays due to port congestions. Normal FAK rates have increased further with PSS / GRI effective from 1 June. IPI rates have a big jump of GRI of $1000 to $2000 per FEU. Premium Surcharges also sky rocketed with $10,000+ per 40’ on USWC lanes and $15,000 per 40’ and higher for USEC. Most carriers have also stopped accepting any bookings to USEC and GULF through June.

Hapag-Lloyd to implement PSS for cargo from East Asia to US and Canada

HAPAG-LLOYD is implementing peak season surcharges (PSS) of US$1,000 per TEU and $2,000 per FEU starting July 18 for goods from East Asia to North America (US and Canada).

In a statement, the German shipping line said the new surcharge will apply to all dry, reefer, flat rack and open top containers.

The company said East Asia is defined as being the countries/districts of Japan, Republic of Korea, China/Taiwan, China/Hong Kong, China (PRC), China/Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia, The Philippines and Russian Pacific Coast Provinces.

 

Premium Surcharges

Due to severely space and equipment shortages, carriers are adjusting their premium surcharges frequently. Most carriers increased Premium Surcharges from 1st June. Cancellation Fee (aka Admin Fee) have also increased in May. Premium surcharges vary from carrier to carrier. Please note these surcharges are extra charges on top of current FAK / GDSM Ocean freight thou not all carriers are able to guarantee loading but it would help to get your shipments in front of the line to secure space and equipment on vessels.

Port / Space / Equipment Conditions

Port of Long Beach

 Please refer to this WAVE report for reference. 

Shanghai & Ningbo & Nanjing

Premium Service spaces are fully booked till mid August. All carriers only accept Premium Service bookings and reject all FAK booking. Overall situation is full with rolling and vessel omit calling port frequently. Congestion continues with no sign of improvement.

Average waiting time at Shanghai terminals are around 1.5. to 2 days. Waiting time for berth at Ningbo port is around 2 to 3 days. On 20 Jun @ 0001hrs until 2 Jul @ 2359hrs, all non-essential DG land transportation is suspended. This means customers will not able to pick up or deliver DG boxes from/to the terminals.

Qingdao

Space has been full till end of July. MSC/HMM/YML/EMC/WHL accept premium bookings but no SP guarantee. ONE/CMA/ZIM/COSCO/HPL/SML can release tiny FAK space case by case. Average waiting time to berth is around 1 to 2 days.

Dalian

Space has been full till the end of July. The situation of July is getting worse and worse, due to feeder vessel has serious delay issues and omit call Dalian. The feeder of OCEAN ALLICANCE on WK27 & WK28 will blank, the whole capacity of July will drop to 30%. The feeder of 2M will stop bookings on WK27, due to blank sailing. THEA is expected to have only 2-3 feeder vessels for whole July.

Hongkong / Shenzhen

Spaces are fully booked till early August due to extensive list of blank sailings and vessel delays. All bookings are subject to roll over. Many containers have diverted to Hong Kong port causing heavy congestions. Few carriers have stopped accepting bookings due to too many backlogs. Yantian port is heavily congested with average waiting time of 7 days or more.

Fuzhou & Xiamen

Spaces are overbooked till end of July and carries only accept booking under Premium service space. More carriers have banned all bookings to IPI locations. 

Taiwan

Space has been full till the end of July. CMA has serious EQ shortage, and raise risk of temporary booking cancellation. YML has equipment shortage at Taichung & Taipei and request to submit applications first before empty pick up. 

Yantian Port Congestion Update and Impact 

COVID-19 has been under control, and the operation capacity of Yantian terminals have steadily recovered and resumed full operations from June 24th. All berths will essentially resume normal operations. We see more and more sailings have resumed Yantian call. On the other hand, the situation in Nansha port which had been handling much of the vessel overflow during the past month is getting critical with prolonged berth waiting time, and carriers suggest to shift current Nansha bookings back to Yantian as it is anticipated that more sailings will have Nansha call omission. 

Yantian officials expect to clear the stacked containers within 4 to 5 weeks, but the backlog of shipments piled up in factories and warehouses in the Shenzhen region will take at least another month to clear. The backlog is compelling factories to stop production because they simply dont have warehousing space to store finished goods. Ocean shipping experts say the prolonged surge released from Yantian will soon add to port congestion and vessel delays at major ports around the world. 

Empty box pickup is a growing problem and export shippers are having to use 20FT instead of the usual 40FT. Every ship going back to Asia carries plenty of empties on board, but they are delayed entering the terminal by port congestion and carriers omitting calls at Yantian, and cannot get into circulation. 

Service Adjustments

  • THEA (ONE/HPL/HMM/YML) PSW service PS5/PS8 suspend calls at Oakland from WK26 to WK32.
  • ZIM has orally informed to suspend calls at Oakland on ZX3 express service from WK21 until further notice.
  • HMM intends to deploy at least four extra-loader vessels to USWC in each of the next two months, up from two currently.
  • The HMM extra-loaders will call at Busan, South Korea, and will also call at a port or ports in China. Vessel sizes range from 5,000 to 6,500 TEU, the HMM spokesman said.
  • SM Lines, which already operates four Asia-USWC services with the 2M, will operate an extra sailing this week. The vessel capacity is 2,700 TEU, calling at Qingdao, Shanghai, Ningbo, Vancouver and Pusan.

Market News

US west coast ports' congestion will 'get worse before it gets better'

THE congestion at the main US west coast gateway complex over the past couple of months, has eased and vessel turn times improved, but importers and logistics companies are in for more grief in the coming months, reports London’s The Loadstar. READ MORE

China's inland providers fight to clear S China port congestion

NEARLY three hundred missed vessel calls through the first half of June are leaving a growing backlog of loaded containers at Yantian International Container Terminals (YICT) that the fully stretched ports and logistics industry will take weeks to clear, reports IHS Media. READ MORE

'I paid ridiculous charges, my cargo still got rolled and the carrier wanted more'

Short-term freight rates from China to North Europe have breached the $20,000 per 40ft mark, while transpacific carriers are quoting rates of up to $25,000 to the US west coast. READ MORE 

Above information for reference only. Should you have any enquiries, please do not hesitate to contact us. 

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

Disclaimer 

Although 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 and all mistakes or inaccuracies in the information. Further, JMR disclaims all liability for loss or damage, which may result from the use of information on this newsletter.