Rate & Market Information

The overall space situation has improved starting late February with more vessels are leaving US ports returning more  equipment back to origin. Carriers are also deploying new capacity into the market by operating extra loader vessels. Most  carriers have extended current rates till end of March and opening more FAK spaces in China. Spaces in South East Asia,  Korea and Taiwan remains tight so we are still looking at booking under Premium spaces. However, we are seeing a sudden  turn around as highly transmissible Omircon outbreaks in multiple provinces in China this week.  

China government is taking strict measures to stem viruses from spreading.  

Guangdong (Shenzhen), Shandong (Qingdao), Shanghai and Tianjin (Xingang) are facing high pressures to clear  COVID-19 cases in the shortest time possible. 

Shenzhen has been put on lockdown since Monday (13 March) ceasing all public transportation and rail lines. Warehouses  in Shenzhen area are also closed until Sunday. Truck drivers entering Shenzhen area are required to proof negative COVID 19 test results 24 hours upon arrival at the port. Shenzhen ports are also setting strict quota on the number of entering  trucks each day.  

Yantian Free Trade Zone will also be closed from 14 March till 20 March. All vessels loaded and departing Yantian this will  depart as planned; however, no cargoes will be able to load starting next week as all port and terminal operations will be  suspended. This disruptive on cargo flow is expected to be have greater impact than the Yantian shut down last year.  

Carriers are now scrambling to adjust their networks and routings with more vessels omit calling port of Yantian or even  blanking an entire service this week and next week. There may be increase in capacity in nearby ports i.e. Nansha or Xiamen  to offset the shortfall from Yantian port.  

Hong Kong reported more than 60,000 cases during the past weekend, and it’s still uncertain whether the infections has  peaked. The city is going into some lockdowns – closing public and business establishments, schools and the border with  the Chinese mainland. Hong Kong, as a transshipment hub, its 80% origin traffic relies heavily on this border activity which  has been blocked off the route to/from the mainland. 

Shanghai is also tightening control measures to curb the spread of COVID-19 since March 1. Shanghai has closed schools,  required citizens not to leave the city if not necessary, and put restriction on local traffic and also highways in and out of the  city. We expect carriers to increase capacity to nearby city i.e., Ningbo to offset the shortfall from Shanghai. Outbound flights  ex PVG to USA have also been reduced due to COVID measures. 

MSC Announcement – USA and Canada – GRI and PSS Implementation WEF 1 April

This serves to advise that General Rate Increase (GRI) and Peak Season Surcharge (PSS) with quantum and effective  date as below for all shipments from South China Ports, Hong Kong origins to USA and Canada destinations:

This serves to advise that General Rate Increase (GRI) and Peak Season Surcharge (PSS) with quantum and effective  date as below for all shipments from South China Ports, Hong Kong origins to USA and Canada destinations: 

• GRI Quantum
  • USD 2400/20DV
  • USD 3000/40DV
  • USD 3000/40HC
  • USD 3798/45’
  • Effective Date: 1st April 2022 (Against Gate in Date) 

• PSS Quantum
  • USD 2000/20DV
  • USD 2500/40DV
  • USD 2813/40HC
  • USD 3165/45’
  • Effective Date : 1st April 2022 (Against Gate in Date) 

Attention: Above apply for the Last container gate in date on same bill 

• Port / Space / Equipment Conditions
• Service Updates
• Market News
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Port / Space / Equipment Conditions

Shanghai / Ningbo / Nanjing: The overall space remains tight especially to LA, space has been full till the 1st week of April.  If premium level can be acceptable, we can expedite the booking to ETD within March. MSC opening some FAK spaces.  USEC & GULF port spaces now full till mid-April. 

Fuzhou / Xiamen: The bookings rebound to only 70% of normal. While space is remaining tight, the market seems  expecting some lower rates. The premium rates are not widely accepted as before. Bookings are tull till early April. Chartered vessel CU Line asking for more bookings. PNW situation remain tight with blank sailings escalating. MSC might  release limited FAK space for USEC.  

Qingdao: The overall space situation eased a little but space has been full till early April. COVID-19 spreading in Qingdao and highways have been sealed. Limited trucking service.  

Dalian: The overall space situation eased a little but space has been full till early April. YML prefer RIPI/IPI bookings than  base port. MSC release limited FAK space to USWC /IPI locations. USEC spaces remains tight.  

Hong Kong / Shenzhen: The overall space remains tight; space has been booked till late April. MSC opening limited FAK  space to USWC/IPI routes. Majority still accepting only bookings under Premium services. COVID-19 is spreading to  Shenzhen, and the mass Covid testing are implemented by governments. The quarantine measures have decreased  efficiency through supply chains, especially in trucking service.  

Service Updates

THEA reinstate the direct call service at Haiphong on PS3 and PN2

Due to serious draft issue at Haiphong, THEA carriers ONE/HPL/YML/HMM temporarily dropped the port last year on their  TP services as the big vessels with capacity over 8,000T were not allowed to call at Haiphong. Since then, HPH shipments  have to be arranged transshipping via SHA or HKG, and the allocation was much impacted with a decrease up to 30%.  Now the carriers announce they will reinstate the Haiphong direct call from the end of March, which is expected to relieve  space pressure.  

PS3: Nhava Sheva – Pipavav – Colombo – Port Klang – Singapore – Cai Mep – Haiphong – Yantian – Los Angeles – Oakland

PN2: Singapore – Laem Chabang – Cai Mep – Haiphong – Yantian – Tacoma – Vancouver

ZIM launches new standalone service to Baltimore

ZIM is going to deploy Zim Ecommerce Baltimore Express (ZXB), providing fast T/T approx. 26 days to Baltimore from Cai  Mep and approx. 29 days from Yantian. 

Rotation: Yantian — Cai Mep — (Suez Canal) — Baltimore — Boston(pending) — New York — Yantian ZXB Service Features: 

• Space and equipment guarantee at origin – no rolling 
• Dedicated Berth/Terminal in Baltimore – no queue 
• Expedite Cargo mounted directly on chassis with immediate availability 
• Daily departure Railway service from Baltimore to IPI Chicago, with additional transit time of 2 days (excl. 2 days dwell  time in BAL). 

ZXB will initially start from extra loader (service code AGX) in March, as commence as a bi-weekly service in April, and  develop to a weekly service in the coming months.  

Boston direct call service is still not available right now, and said “depending on demand”. ZXB will likely utilize 10 “baby Panamax” ships with capacities ranging between 3,000 and 3,500 TEU. 

Market News

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

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Disclaimer 

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.