Rate & Market Information
USEC port congestions have ramped up after USWC stabilizes. Rates remain solid and spaces are still tight due to limited capacity caused by blank sailings.
As lockdown situation relaxes in Shanghai starting this week, there are more truckers and terminal operators back to work.
There will be a rebound market as shippers will try to clear backlogs and start shipping for peak season orders. US ports will start becoming more congested in the months to come.
USWC spaces are mostly booked up to mid June ex Main Ports China while USEC spaces are booked up to end of June.
Spaces are getting tighter with increasing blank sailings and vessel delays. Most carriers also sets weight limitation to around 8 to 9 ton per TEU incl. tare for USEC shipments.
COVID-19 / Lock down situation in SHANGHAI
A three-phase recovery plan was announced on last Monday.
Phase one, from Monday to Saturday this week, is to continue reducing new infections and preventing rebounds. Phase two, from May 22 to May 31, will transit the city’s emergency response status to normalized epidemic prevention, and bus and metro service will gradually resume.
Phase three, from June 1, the city will aim to fully normalize daily life and business activities, and a full open is expected by late June.
More depots have re-opened last week. Labour capacity at ports and terminals have returned to 70% and expect factories will return to at least 60% production capacity starting in June. Trucking services in Shanghai and other cities including Ningbo, Qingdao, Xiamen, Shenzhen and Guangzhou continue to face restrictions including the requirements of negative test results, a health code or local pas. Barge services is recently growing as an alternative to the limited trucking capacity.
BNSF cease rail service to Portland via Seattle/Tacoma
Congestion is currently most severe in the PNW ports. IPI dwell in Seattle terminal remains high at 15+ days, while IPI dwell off-dock in Oakland at +10 days, and IPI dwell steady at 8 days in LA/LB which is still the best gateway for IPI freight despite multiple terminals reporting growing congestion at on dock rail.
BNSF Railway has reported congestion in Chicago, Memphis, and Kansas City without enough chassis to move ocean containers. The most trouble is still coming from PNW. BNSF will cease rail service between Portland and Seattle/Tacoma wef 18 June. HMM has stop booking via Seattle/Tacoma to Portland tentatively until further notice. There is no evidence that the service suspension will spread to a larger scale.
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Chinese forwarders are seeing freight rates rise as factories re-open and goods start to move. “Factories are reopening bunch by bunch, upon approval, in the areas around Shanghai,” confirmed one local forwarder.
With Shanghai on the cusp of unlocking its manufacturing and unshackling frustrated container exports, spot rates from Asia are set to increase in the coming weeks.
It’s still very expensive to ship containers full of goods across the oceans. Spot rates globally are still more than quadruple pre-pandemic levels. But rates are now materially lower than they were a few months ago — and falling by the week. The Shanghai Containerized Freight Index (SCFI) logged its 15th consecutive weekly loss on Friday.
COVID lockdown measures in Shanghai are drawing to a close but a backlog of shipping containers at the Port of Shanghai could once again fuel airfreight congestion and demand, reports London’s Air Cargo News.
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