Transport Update 17th January 2022

Asia → North America (Transpacific Eastbound)

Rates

• Rates from Asia to North America have increased this week, according to the Freightos Baltic Index.
  • From Asia to North America West Coast, rates have increased by 7% to $14,637 per 40ft.
  • Rates have increased from Asia to the East Coast by 5% to $17,488 per 40ft. 

Capacity

• ONE has reported that its 13,900 TEU vessel, Madrid Bridge, suffered a stack collapse.
  • At least 30 containers have been lost overboard. 
  • The vessel is continuing west to its destination, New York.
  • Delays to the vessel’s schedule are expected. 
• The 2M partners have cut two scheduled Transpacific calls.
  • Maersk has said its TP6/MSC Pearl service would ‘slide’ by a week from its 1st February departure date and the TP2/MSC Jaguar loop would be delayed by a week from its advertised sailing of 14th February. 
  • MSC has cut four standalone voyages between 30th January and 14th February. This is to prepare for the slowdown in demand around Chinese New Year. 

Ports

• The Port of Long Beach has received funding from the government for port and marine infrastructure development. 
  • The port has received a $52.3m grant which will go towards its Pier B rail project.
  • $550bn will go towards improvements to transport infrastructure.
  • $5bn of direct funding will be dedicated to ports. 
  • Ports can apply for funding for individual projects from a separate pool of $27.1bn. 
• South Carolina Ports reported handling 2.75 million TEUs at its container terminals in 2021, their most successful year yet. 
  • Cargo volumes at container terminals increased by 19% in 2021 compared to 2020. 
  • The port terminals also handled 1.53 million pier containers which accounts for containers of any size. This increased by 18% compared to 2020. 
  • The port ended its year with its strongest December on record, handling 246,198 TEUs and marking ten consecutive months of container records. 
• The Port of LA has delayed its container dwell fee program yet again since its announcement in October 2021.
  • If implemented, carriers will be charged $100 per container after containers that have been sat at ports for nine or more days. This will increase in $100 increments per container per day until the container leaves the terminal. 

Asia → Europe (Far East Westbound)

Rates

• According to the FBX, rates have increased slightly from Asia to Europe.
  • From Asia to North Europe, rates have increased by 1% to $14,432 per 40ft. 
  • Rates increased by 1% from Asia to the Mediterranean to $13,599 per 40ft. 
• Fronthaul long-term rates are predicted to double or triple compared to last January.
  • For example, on the Far East to North Europe route, an average long-term contract rates are $9,300 per feu. This is almost triple their levels a year ago. 
  • Long-term backhaul rates have increased by 12% to $1,300 per feu within the same period.

Capacity

Ports

• Maersk has warned customers that global supply chains face another challenging year. 
  • Despite this statement, the shipping line has reported a significant improvement at its Antwerp terminals. Vessel berthing delays have reduced from 10 days to 2-4 days. Yard density is still ‘critical’ at 85%. 
  • At Hamburg’s Eurogate hub, vessel waiting times are two to three days, whilst the yard density is at 103%.
  •  UK ports are the most problematic. Felixstowe has berthing delays of seven to ten days, with a yard density of 96%.
  • A considerable amount of cargo destined for Felixstowe on 2M sailings from Asia is currently being discharged at Wilhelmshaven and Antwerp.

Air

Asia 

 Central China to USA and Europe

• Due to the increase in exports before Chinese New Year, air freight has increased significantly to the EU and US.

• Positive tests from China Southern Airlines’ crew has caused a large number of flights to cancel on Sunday. The airline’s goods will be delayed by one flight this week. 

• • The rates from Shanghai to the USA and Europe are expected to increase from the second half of this month to the end of the month. 
  • Rates have decreased this week to both destinations from Ningbo Airport. However, rates and space must be checked with the carrier on a case-by-case basis. 
  • Covid restrictions are still in place at PVG Airport.
    • Over 40% of cargo flights are cancelled
    • Terminals are at 50% in terms of labour resources.

• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

North China to USA and Europe

• The air situation is tight in the run up to Chinese New Year and space is critical as more cargo will be sent out before the holiday. 
• Due to the COVID-19 outbreak in Tianjin, rates for pick-up and delivery will be subject to traffic control policy. 
• Rates are on a case-by-case basis from TSN Airport to the USA and Europe. 
• Rates have remained the same between Peking Airport to the USA and Europe.
• Be prepared to confirm space and rates 3 to 4 days in advance in time for Chinese New Year. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

South China to USA and Europe

• As we approach Chinese New Year, air space will be tight and airlines will increase their rates to the USA and Europe. 
• At SZX Airport, rates for flights to the USA and Europe have increased.
• Rates have remained the same for the USA and Europe from XMN Airport. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

Americas

• US aircraft automation firm, Reliable Robotics, has announced a new cargo airline, led by industry veterans.
  • Reliable Robotics’ automation system is designed to enable remote operation of any aircraft type.
  • It expands access to more locations, and has accounted for safety, convenience and affordability.
  • Once the system is certified for commercial use, cargo operators will be able to expand direct routes to more locations and gain flexibility to fly more frequently with remotely piloted aircrafts. 
• Saudi Arabian Airlines is hoping to add a new freighter service between Europe and the US but has met with some resistance from US carriers.
  • The airline applied to the US Department of Transportation for a limited exemption for seventh freedom rights to operate all-cargo flights between Liege, JFK Airport and Chicago O’Hare Airport. 
  • However, US carriers have responded that the airline does not have access to the seventh freedom rights to operate flights to Saudi Arabia. 
  • Saudi Arabian Airlines argues that the flights would be in the public’s interest to help alleviate supply chain delays and will consult the government on the legalities.

Europe/UK

• UPS has launched daily air cargo connections between Billund and Cologne. 
  • Businesses in Jutland, that are exporting packages in Europe and the rest of the world, will benefit from later pick-up times. 
  • The new flight path will allow Danish businesses to have greater flexibility due to reduced transit times for packages. 
• Groundforce Portugal reached a new monthly maximum for handling air cargo at the airports where it operates. 
  • 14,148 tonnes of cargo were handled at the company’s various terminals, an increase of 46% compared to December 2020.

Road and Rail