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

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 don’t 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

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.