Market Update for January 2021

Ocean Prices Went From Historical Lows to Historical Highs, While Service Went the Opposite Direction

Unfortunately, in the first six weeks of 2021, before the Lunar New Year, we are facing massive rollovers, equipment shortages, vessel delays, and terminal backlogs of trans-Pacific lanes. I am a forty-year industry veteran, and I have never seen anything like this before. I am not so sure any correction is going to happen anytime soon.

Normally, carriers and their clients negotiate and sign contracts in the slow season after Chinese New Year, when prices drop. These contracts promise the client will ship a certain number of containers with that carrier over the course of the year for a price that will not change, even if market conditions do, and the carrier will guarantee space for those containers at the client's convenience.

But, this year, carriers have been forced to deal with the less-than predictable market brought by Covid. Contracts are forecasted to be set at rates at least 40% higher than last year.

Even so, carriers have been leaving containers of contracted clients at the dock in order to load containers sold at spiked spot prices. With the change in retail priorities due to Covid, the high prices we are seeing now will extend past the Chinese New Year holidays, and perhaps through the entirety of 2021. We will all need to plan for this increase in your ongoing and upcoming projects.

In this time of unstable rates and uncertain availability, we will work for you to make sure your shipments arrive on time and intact, at the lowest prices possible.

Sincerely,

John Crawley
Chief Operating Officer
JMC Global

HOLIDAY NOTICES

Please take note of the following holidays and work with your JMC project manager to plan your shipments accordingly

CHINA & MALAYSIA
FEBRUARY 11-17 Lunar New Year

HONG KONG
FEBRUARY 12-16 Lunar New Year

TAIWAN & VIETNAM
FEBRUARY 10-16 Lunar New Year