Transport Update 24th January

Asia → North America (Transpacific Eastbound)

Rates

• According to the Freightos Baltic Index, rates from Asia to North America have varied this week.
  • From Asia to the West Coast, rates have increased by 3% to $15,145 per 40ft.
  • From Asia to the East Coast, rates have decreased by 3% to $16,986 per 40ft.  

Ports

• US ports continue to set annual records. 
  • The Ports of Los Angeles continue to break records as the port has reported volumes of 10.7 million TEUs in 2021 despite congestion that has hit throughput in recent months. 
  • The Port of Long Beach sets an annual cargo record in 2021.
    • The port moved over 9.3 million TEU in 2021, an increase of 15.7% from the previous year as 8.11 million TEUs were moved in 2020.
• As of 19 January, 99 container ships are waiting to enter the Ports of LA and Long Beach. 
• Hapag-Lloyd have published North America updates:
  • For New York, current dwell times are 7 days. Several terminals; Maher, APM, and PNCT have planned a Saturday gate on January 2022 to facilitate increased import deliveries.
  • At the Ports of LA and Long Beach, ships are waiting an average of 4.5 days to catch a berth.  Both ports are seeing record volumes month after month that challenge the existing port infrastructure.
  • Average wait time for vessels at anchor is 4-15 days at the Port of Oakland. The port has seen an overall increase in import volumes of 8% YTD 2021. Chassis shortage is also contributing to high volume issues.

Asia → Europe (Far East Westbound)

Rates

• From Asia to Europe, rates have increased according to the FBX.
  • From Asia to North Europe, rates have increased by 1% to $14,578 per 40ft.
  • From Asia to the Mediterranean, rates have increased by 4% to $14,158 per 40ft.
• Fronthaul long-term rates look set to double or triple from their year-ago levels.
  • Long-term backhaul rates have seen a smaller increase of 12% over the same period.
  • Spot rates on the Far East to North Europe and Far East to Mediterranean routes have risen 6% and 2% respectively.
  • Backhaul rates from North Europe to the Far East decreased by 5% over the last month, but remain above pre-pandemic levels.

Capacity

• Space on carriers is mostly gone ahead of Chinese New Year.
• However, during the week of Chinese New Year and the week after, there will be a decline in bookings.

Equipment

Ports

• Restrictions in Yantian have been put in place to control congestion.
  • This may affect the movement of yard containers.
• European shippers moving imports of animal origin have faced challenges at the UK border.
  • There have been interaction difficulties between the Import of Products Animal, Food and Feed (IPAFFS) and the Customs Handling of Import and Export Freight (CHIEF) digital customs systems. 
  • Trucks have been put on hold in ports and hauliers are contending with a lack of clarity surrounding their obligations around the Goods Movement References (GMRs). 
• The Port of Antwerp sees a rise in container ship traffic in January.
  • Port congestion has risen in Antwerp as the port saw the highest container vessel count in about nine months.
  • At least 50 container carriers were waiting in Belgian waters to enter the European container hub. 
  • The median count for vessels between April to January was 36.

Air

Asia 

 Central China to USA and Europe

• This week is the last week before the Chinese New Year Holiday. 
• Trucking services will stop and the latest pick up date is 27th January in Shanghai. 
• Rates will remain high from now until 3rd February to Europe and the USA. Rates will decrease for both destinations from 4th February. 
• Space is also very limited to both destinations. 
• The epidemic controls at PVG airport are still in place however, there are no rules that are specific to Omicron due to the day-to-day control on COVID-19.
  • Over 40% of cargo flights are cancelled
  • Terminals are at 50% in terms of labour resources.
• Rates from NBG Airport to Europe and the USA have decreased this week. 
  • Rates and space need to be checked with carriers on a case-by-case basis.

North China to USA and Europe

• Space is limited at TSN airport due to the last week before the Chinese New Year holiday.
  • If you have any urgent cargo, space will have to be booked at a higher rate. 
  • Spot rates are still available for dense cargo. 
  • Truck service is tight as some drivers have gone back for the Chinese New Year Holiday.
• At PEK airport, rates are the same as last week to both Europe and the USA. 
  • United Airlines has reopened the direct lane to ORD Airport from 5th January. 
  • Again, because of Chinese New Year, space remained tight. 
  • Heavy cargo can still be arranged on a case-by-case spot rate basis.

South China to USA and Europe

• Space is tight from CAN Airport to Europe and the USA. All shipments need to be checked on a case-by-case basis. 
• From SZX to Europe and the USA, rates have been increasing.
• The current market from XMN Airport to the EU and the US remains the same as last week.
• Businesses should check rates and space 2-3 days before their cargo departure date. 

Americas

• Ontario International Airport (ONT) saw air cargo volumes drop in 2021 in comparison to 2020 levels. 
  • Cargo shipments declined by 3.7% from 2020 levels as volumes totalled more than 890,000 tons. 
• Airlines have been cancelling US services over concerns over the roll out of 5G networks.
  • Despite telecommunications firms, AT&T and Verizon delaying the implementation of 5G networks in light of concerns in the aviation sector, airlines have continued to cancel services. 
  • Airlines have requested that 5G be implemented approximately two miles away from airport runways.
  • The concern is that 5G frequencies could interfere with an aeroplane’s operations in low visibility. 

Europe/UK

• Qatar Airways Cargo will source its entire commercial operation from their own company in Spain from 1st February. 
  • The company has so far been represented by GSA, ATC Aviation Services in Spain since 2005. 
  • However, Qatar Airways Cargo’s Spanish operations are now ready to insource its own activities and services.

Road and Rail