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

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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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