Asia → North America (Trans-Pacific eastbound)
Price：May was higher than April
Shipping conditions：Extremely tight
Capacity/equipment：Severe shortage in North China, Southeast Asia and Taiwan, China
The shortage of capacity / equipment on the trans Pacific eastbound route (TPEB) remains: the price rise in May was mainly driven by two factors. First of all, the overall market demand continues to rise, and US imports will hit another record in May. Secondly, the transportation capacity decreased. Since May, all carriers have been trying their best to deal with the impact of the Suez Canal incident, and the suspension accounts for 5-10% of the weekly voyages. In addition, the carrier pointed out that the demand for space booking is extremely strong, and the backlog of goods has been pushed to June. The peak season continues, and it is expected that the shipping space and transportation capacity will be very tight in May.
Asia → Europe (far east northwest Europe route)
Price：Uptrend
GRI on May 1：Due to high demand and low capacity, all carriers' prices rose sharply.
GRI on May 15：Further increases are expected.
Shipping space: It is recommended to book at least 3 weeks in advance of the good was ready.
We are suffering from the knock-on effects of the Suez Canal incident, including the suspension of flights and severe equipment shortages. Capacity in weeks 16 and 17 was severely reduced, and capacity in weeks 19 and 21 will continue to be affected. Equipment shortages are expected to extend into the next two months because of the large number of outages.
Europe → North America (Transatlantic westbound route)
Price：Uptrend
GRI on May 1：Implemented
GRI on June 1：Likely to be implemented
Shipping space: It is recommended to book space at least 5 weeks in advance of the good was ready.
Note：GRI has announced a price increase in June and implemented a new / adjusted surcharge. Due to the tight supply of equipment in the short term, the market is expected to remain hot throughout the summer. It is very important to book space as early as possible to ensure space. For urgent items requiring higher transportation reliability, please use priority transportation service.
The equipment supply in Europe is extremely tight because of port congestion and the reduction of empty space of cargo ships, which hinders the scheduling of empty containers, especially the inland container yard. Flexible transshipment and empty containers from the port are allowed.
Capacity Outlook: there are few suspension services in northern Europe, but the port congestion in northern Europe and North America, especially the west coast of the United States (USWC), leads to poor reliability of the voyage table.
The three suspension of EMA services in May and June will limit the transport capacity from the East and west of the Mediterranean to the east coast of the United States (USEC) in weeks 20, 23 and 26.
India → North America
GRI on May 1：Most carriers have implemented
Shipping space：Suspension and booking restrictions continued to have an adverse impact on capacity in early May. It is recommended to book shipping space 15 to 20 days in advance of the goods was ready (CRD)
Equipment：The carrier pointed out that India will still be the priority area for spare equipment dispatching (after China, of course). Even so, with new equipment entering the market, rising demand and the continuous impact of Suez Canal blockage, it is likely to continue to face equipment shortage in the next two months.
Note：We still recommend booking priority transportation and non container dumping services for emergency goods.
COVID-19 Bulletin——The Indian subcontinent is facing a new wave of outbreaks, with more than 100000 new cases per day. Bangladesh announced a comprehensive blockade for a week (originally scheduled to end on April 21, but now extended to April 28, which may continue to be extended), and most parts of India began to implement restrictions
North America → Asia
Price：Uptrend
GRI on May 1：Received GRI notices form two carrier.
GRI on June 1：There are indications that the GRI of refrigerated containers issued on the west coast of the United States will be adjusted.
Shipping space：It is recommended to book shipping space 14 to 21 days in advance of the goods was ready at the port.
Shipping space：It is recommended to book shipping space 14 to 21 day in advance of the goods was ready of the Railway yard.
On account of suspension,the port of Los Angeles to all Asian destinations are more strained. Recommended to book shipping space at least 3 week in advance.
Most major ports and railway yard are short of chassis cars.It is recommended to allow for trucking companies to book chassis cars.
The east west coasts of the United Sated are still congested with cargo ships,and the deadline for closing and the earliest return of cargo ships continues to be delayed.
North America → Europe
Price：remain steady,but one carrier has announced a small adjustment to GRI on June 1.
The port congestion on the east coast of the United States and Northern Europe affects the integrity of the voyage table of all services. As long as the ship makes up for the time, it is losing capacity every week. We strongly recommend booking space as soon as possible, which will help to ensure acceptance
The capacity of all waterway transportation services from the west coast of the United States to Europe is limited, and the shipping space is becoming more and more tight. We strongly recommend booking at least 3 weeks in advance.
Shipping space：It is recommended to book shipping space at least 14 to 21 days in advance.
Shipping space：It is recommended to book shipping space at least 14 to 21 days in advance.Most major ports and railway yard are short of chassis cars.It is expected that trucking companies need to book chassis vehicles more time in advance.
Latest developments in the Air transport market
Asia
During China's May Day holiday, Asian export markets are still busy.
The demand is still very strong, the transportation capacity of each origin is very tight, and the price is still at the high point of the peak season. The total demand of Asia to the United States (TPEB) increased by 44% year-on-year, and the total demand of Asia to Europe (FEWB) increased by 24% year-on-year. The transportation capacity is stable, but it is far from meeting the demand.
Due to the serious shortage of transportation capacity, the price of Taiwan Taoyuan International Airport (TPE) increased by 15-35%. Although a large number of crew members of China Airlines have tested positive for Xinguan, so far no cargo aircraft has been cancelled.
The current situation is expected to continue at least until the end of May.
Europe
Demand for European exports to the Americas and Asia continued to show strong momentum. Shipping space to the west coast of the United States remains tight. There has been no significant increase in capacity to North America in the past week. The utilization rate of shipping space to Asia (especially China and Japan) remains high. All carriers report high rates.
Affected by the severe epidemic blockade, the shipping space between India and Bangladesh is scarce.
The import and export throughput of major hub airports and secondary airports in Europe is normal.
America
Due to the continuous shortage of cargo carrying capacity in the belly compartment of the passenger plane, the supply of capacity is expected to remain tight. It may take 2-5 days from booking to departure to major destinations in Europe. The capacity of the gateway airport on the west coast of the United States to Europe is the most tense, while the capacity of the Midwest and east coast of the United States is at a controllable level. The transportation capacity from the west coast of the United States to Asia is being quickly occupied by fresh and dry goods.
Carriers in the United States and Europe have not yet filled the capacity of transatlantic routes. They are waiting for more information on the impact of the newly proposed EU travel regulations on summer months.。
There is a large influx of Asian and European cargo flights, and the ground staff of Los Angeles International Airport (LAX) and Chicago O'Hare International Airport (ORD) are still handling the backlog of imported goods. It is reported that the ground crew has a delay of up to 3-6 days in sorting the cargo of inbound flights. In addition, truck capacity to support airport restoration and local transportation is also scarce, especially on the west coast.
U.S. exports of fruits and vegetables will rise sharply during the fresh season beginning in the week of May 10. The cherry season will also start from the week of May 10, with strong demand from Asia. In the busy fresh season, the prices from the west coast of the United States to Asia rise significantly, and the shipping space is tight, but it is at a controllable level.
Factory production news
China's economy grew by 8.16% in the first quarter of 2021, mainly due to increased manufacturing capacity and sustained high investment in the region.
Last weekend, India added 392488 new crown cases in a single day, triggering discussions on further prolonging the blockade.
Pakistan plans to impose a blockade on the worst affected cities in the first week of May, but Pakistani Prime Minister Imran Khan opposes the implementation of a national blockade on the grounds of economic impact. But he also warned that if the people could not abide by the rules of social distance, he would be forced to impose a blockade. There is no change in logistics
Freight market news
Truck transportation encounters equipment obstacles, and the truck fleet is difficult to meet the freight demand of the United States. According to the Wall Street Journal, the shortage of transportation capacity may continue throughout the year, and the shortage of transportation capacity will increase in peak seasons. In order to cope with the backlog of goods, operators increased equipment orders, but the global semiconductor shortage affected the production of new trucks.
Container production is increasing, but there is still a shortage. In order to alleviate the tension of global container supply, container production is expected to increase by 6% to 8% this year. However, "American Shipper" reported that the newly produced containers are making up for COVID-19's low production, so the supply will still be insufficient.
Freight market dynamics is a free service provided by Newlandocean. If you haven't subscribed, we invite you to access this link subscription, or you can also focus on Newlandocean WeChat official account and push you dynamic updates every week.
Due to the constant changes of time, market, policy and other factors, the above contents are for reference only, and newlandocean does not bear any legal responsibility.
