Market Updates
Coronavirus (COVID-19) Situation
- Over the past weeks or so, The China government has reportedly lowered COVID-19 emergency response levels in some provinces, allowing the workforce to get back to production. Return to work restrictions from the Chinese local authorities and some office buildings remains in place.
Drayage in China
- Availability of inland trucking in Mainland China remains limited, advanced bookings of at least 3 to 4 days are required to secure trucking services.
Shipping
- production and export volume from China have gradually increased as the workforce returns to work. Demand for airfreight space is picking up though capacities are still tight as shippers are looking to switch modes in order to catch up on schedules.
- Equipment in China is sufficient and ports are loosening the backlog of cargoes as workers return to their posts. However, the mass cancellation of sailings from China will cause capacity shortages in the next 4 to 6 weeks.
- The outbreak in South Korea may be the next concern from US ports. Busan is a major transshipment hub, and the outbreak could also impact volumes on the USWC.
Rates
- Despite continued weak demand and blank sailings, carriers are rolling out FAK and GRI increases in March and April in hope that containers will shippers will start rushing out orders when the virus is contained and manufacturing is back to its usual capacity. Another reason for rates spike is due to space shortages due to blank sailings.
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