Rate & Market Information

FAK rates remain well above historical averages. After a price increase of $500 to $1,000 per FEU at the beginning of the month, carriers have decided to maintain current level till the end of November. Carriers started offering FAK space to customers at the end of Oct and beginning of November but spaces became tight again as port congestions worsen at US ports so carriers pushed all bookings back to Premium spaces again. For USEC and GULF, the space situation has never eased and continue to deteriorate due to extensive list of blank sailings and omit calls to SAV.

Port / Space / Equipment Conditions

(Sourced from the port of Los Angeles Signal data.)

  • Manifested cargo sitting on around 80 ships at anchor in the San Pedro Bay → 500,000 TEU
  • Manifested cargo due to arrive at the port in WK 46 (between 14 and 20 NOV) → 158,000 TEU, which is 42%↑ year over year
  • Manifested cargo due to arrive at the port in WK 47 (between 21 and 27 NOV) → 96,000 TEU, which is 20%↓ year over year

PSW “Emergency Fee” Surcharge

The number of long-dwelling containers has declined 23% in LB since 01 Nov and 14% in LA since 24 Oct, after the port authorities announced the emergency dwell fees ($100 for the first day and rise in $100 increments each subsequent day) due to go into effect 15 Nov. More than 80 vessels are anchored outside the two ports, and 500,000 TEUs sitting on vessels will come flooding into the ports in time for discharging. The challenges to move the containers out of the ports will increase again.

So far, we haven’t received adequate clarification about dwell fees related with IPI cargo. Only Maersk and ONE state they will not pass along to customers for dwell fees due to rail delays.

US railroads no longer limit traffic from LA/LB, but new port fees raise new concerns

BNSF and UP, who metered the number of containers from USWC this summer, now stop the strategy and encourage customers to ship more IPI cargo by rail as a means of easing USWC port congestion. The inland congestion seen in busy intermodal hubs such as Chicago, Dallas, Kansas City, and Memphis earlier this year has eased considerably in the past two months. However, LA/LB port authorities are providing less dwell time to railroads(6 days) than to trucks(9 days) before assessing an emergency fee. That will lead to a large gap of storage for the same box when compounding fee is concerned, which may discourage the use of rail.

ONE has informed us to help push any possible LA/LB local bookings to IPI points, providing incentives as waiving COD Charge/Admin fees for these bookings and avoiding possible LA/LB dwell charge.

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Market News

Tougher talks for US importers in negotiating freight service deals

US retailers face arguably the most difficult trans-Pacific service contract negotiations in recent memory with freight rates soaring, in some cases, to twice the normal rates and causing havoc to transportation budgets.
Faced with persistent cargo delays North American importers often have had to pay premium prices to just guarantee loadings and equipment availability.


Maersk sees continuing supply chain crisis as profits soar

MAERSK declared there isn’t an end in sight to the global supply chain crisis as the world’s largest container shipping group had the most profitable quarter in its 117-year history, reports London’s Financial Times.

Maersk CEO Soren Skou declared that congestion outside ports such as Los Angeles and Long Beach are getting worse as retailers and manufacturers struggle to keep up with surging demand after the Covid crisis.


Transpac ocean freight rates come off the boil as carriers ease premium fees

Ocean carriers are offering significant discounts on Asia exports to the US and Europe as the traditional slack season kicks in. The discounting and waiving of premium fees for late November and December shipments caused a mini-collapse in container spot rates this week. 


Congestion building at US airports as handlers struggle to find cargo space

US shippers are now facing severe airport congestion – New York’s JFK and Los Angeles seeing delays of up to two weeks to recover cargo, in some cases. 

“We are truly struggling with the air product, in JFK especially,” said one US freight forwarder. “There is huge congestion at JFK, while the airlines are not able to push the handlers. 


Carriers skip calls but still miss schedules

Efforts to maintain reliability are failing even when ports are left off rotations, as congestion and long waits for berths affect carriers’ on-time performance – not just in the US, but also affecting Europe and Asia 

Carriers are increasingly skipping port calls in an effort to meet schedules amid port congestion and delays, despite schedule reliability sitting at record lows. 


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

For rate inquiries: jmr-rates@jmrodgers.com | For export operations & inquiries: jmr-export@jmrodgers.com | For ISF submission and status inquiries: jmr-isf@jmrodgers.com | For import operations & inquiries: jmr-docs@jmrodgers.com | For traffic-related issues: traffic@jmrodgers.com 


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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