Port Congestion and Equipment Availability

Graph taken from IHS Markit

The following information is taken from a Freightos article published on September 21, 2020. Find the source material here.

OCEAN FREIGHT AND CORONAVIRUS

Ocean rates from China to the US have continued their steady climb, with six consecutive general rate increases (GRI) since June 1, 2020.

An anticipated seventh GRI mid-September would push rates from China to the US East Coast rates to nearly $4,500 per FEU and rates to the US West Coast up nearly 160% over last year.

The extremity of ocean freight pricing has propelled the Chinese Ministry of Transportation, the US Federal Maritime Commission (FMC), and other industry groups to consider intervening to prevent additional increases.

Despite carriers restoring cancelled sailings, and possibly being prevented from blanking sailings on transpacific lanes over Golden Week, high demand is outpacing capacity, and this will likely continue through October.

AIR FREIGHT AND CORONAVIRUS

High rates and delays are causing some importers to opt for the enhanced certainty and speed of air cargo, contributing to a continuing increase in air rates.

Demand for air cargo will continue to rise in the coming weeks as retailers prepare for the holiday season and rush to beat Golden Week shutdowns.

This surge, combined with limits on capacity due to decreased passenger flights, is expected to drive air cargo prices even higher in the coming weeks.

TRUCKING AND CORONAVIRUS

After a drop in the second quarter of 2020, trucking is experiencing a much-needed rebound.

Trucking volumes, rates, and employment, have all climbed over the summer and into the fall, especially out of the West Coast, with UPS, FedEx, and USPS all announcing rate increases to handle a surge in volumes heading into peak season.

The growth of eCommerce is contributing to a steady increase in trucking demand, however, supply chain disruptions persist.

FURTHER NOTES
port congestion and chassis availability compacting struggles with surge in import volumes in US largest ports

Warehouses in Southern California are holding onto containers and chassis an average of 7.4 days, almost twice the normal “street dwell” time, prolonging a chassis shortage that is disrupting the delivery of merchandise amidst record import volumes.

The import surge that is fueling the chassis shortages is expected to continue at least through October

Big issues with chassis in Long Beach are causing problems with port pickups. There is also severe congestion at New York, Vancouver, and Prince Rupert ports, causing delays.

HOLIDAY NOTICES

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

CHINA
October 1st through 7th National Day (aka Golden Week)

KOREA
September 30th through October 2nd Chuseok

TAIWAN
October 1st Mid-Autumn Festival

INDONESIA
October 28th through 30th Prophet Muhammed's Birthday