Transport Update 8th September 2021

Asia → North America

Rates

• Hapag-Lloyd and MSC have announced increases in rates from the Middle East and the Indian Subcontinent to several ports in America, which will be effective from mid-September and October.
  • Hapag-Lloyd will set a General Rate Increase of $500 on all 20′, 40′ dry and reefer containers from the Middle East to the East Coast South America, including high cubes, from 15th September.
  • For port locations, they’re also applying GRIs from India and the Middle East to US and Canada:
    • $800/ 20′ standard and reefer cargo.
    • $1,000 per 40′ standard, reefer and HC containers.
  • For ramp locations, a GRI of $1,800 per 20′ standard and reefer box and $2,000 per 40′ standard, reefer and HC cargo to US and Canada.
• Hapag-Lloyd will also apply a new GRI from Indian Subcontinent (ISC) and Middle East to USA and Canada from October 1st of $1600-$2000 for all containers.
• New MSC rates are as below:

Capacity

• HMM has extended its “extra loader” services to Australia, with services from Korea to Melbourne and Sydney, in addition to existing ad hoc services to the US.
• Carriers have added capacity by double-digit percentages on the Trans-Pacific trades (22% to the West Coast and 14.4% to the East Coast) which will likely add to port congestion through the rest of the year.

Equipment

• See below

Ports

• The Marine Exchange of Southern California reports 60% more container ships at anchor than at berth at Los Angeles/Long Beach terminals.
  • US ports remain extremely congested, with Georgia’s Savannah congestion rate currently the highest in the U.S. at 82%, ahead of Seattle at 65% and Los Angeles at 54%.
• Intermodal carriers continue to limit capacity as they work through congestion inland, particularly in the Chicago area, including CSX and other Class I rail companies.

Asia → Europe (Far East Westbound)

Capacity

• Rates remain stable from the Far East to EU.
• Rates from India to EU are increasing with many carriers due to capacity issues:
  • Hamburg Sud announced a GRI of $800.
  • CMA announced a GRI of $400.
  • MSC raised prices, while also moving to bi-weekly price validity.

Capacity

• Booking four weeks ahead remains effective for finding capacity.
• The Commerce Ministry in India has assured that they will announce short-term measures to ease the acute container shortage and rising box prices. Possible measures include sourcing new equipment, price controls, regulation on container management.
• Two new charter operations have added capacity to China – EU routes.
  • Italian forwarding company RifLine has fixed two 1,100 – 1,200 teu ships for a new direct connection between the Far East and Civitavecchia for a period for a period of eleven to thirteen months.
  • Meanwhile joint venture Eshipping Gateways will be bringing 2,000-3000 teu shipments into Zeebrugge and Hamburg ports.

Equipment

• See below

Ports

• Hapag-Lloyd has announced that the eastbound calls at Jebel Ali of the North Europe – Middle East – Far East ‘FE3’ loop of THE Alliance will be temporarily skipped.
• Asia-North Europe on-time performance in July 2021 fell to 22.2% compared to 90% in July 2020, according to data from Sea-Intelligence.

Air