Ocean Freight Market Update
Asia → North America (Transpacific Eastbound)
Capacity: Despite returns to 2019 capacity levels, space remains tight. Recommended 14 day advanced booking notice.
GRI: No Announcements, as carriers maintain current rates through to the end of the month.
US Drayage continues to be under pressure especially in California, due to the high demand.
Asia → Europe (Far East Westbound)
Rates: Decreased marginally
Capacity: Remains tight, as blank sailings continue after the Golden Week holiday. Recommended booking to be made at least 14 days prior to CRD.
Equipment: Supply remains tight but no shortages being reported in week 44 / 45.
Moving into November rates are expected to increase, as congestion issues in Felixstowe are expected to see a decline in calls or carriers to implement Port Congestion Surcharges to recoup the additional expenditure caused by additional waiting time.
India → Europe
Rates: Rallied Midweek and are returning to levels at the beginning of October.
Capacity: Remains tight and bookings should be made at least 14 days prior to CRD.
Equipment shortages continue to be critical, especially in certain ICD’s. Carriers are looking to implement Equipment Surcharges in order to secure equipment.
- Idle fleet now reported at 430,000 Teus down from 2.7M at the beginning of April 2020.
- Reported that No tonnage available for charter in the +5,000 Teu Market.
- Demand continues to soar on consumer products as people prepare for the possibility of a second lockdown.
Air Freight Market Update
- The air freight market is in traditional peak season and cargo volumes are increasing sharply every week. The new iPhone 12 was launched on 14th October and the new Huawei product will be launched on 22nd October, which makes the space extremely tight.
- The PPE product is still in high demand in Europe, which is the 2nd biggest commodity in air freight this month. They have occupied a lot of space on the direct flights.
- Some cargo aircrafts are fully booked until the end of October. It is recommended to prepare 2-3 backup options for urgent cargo.
- There is a charter flight arranged ex CGO to Europe, 7 days notice would be needed to secure the space for this flight.
- Overall, the price is climbing sharply and space is extremely tight. It is recommended to book the space as early as possible.
- Since the US is a net-import market, the US export market is a reaction to what comes in. Aside from a few high demand destinations, there seldom is capacity issues, and the US export market in general is very stable. This might change as the vaccine starts to ship.
- The market is still seeing rates at a higher than normal level. This is due to reduced capacity caused by decreased passenger levels meaning airlines are still not operating a full schedule and some passenger flights are still being operated as cargo only flights.
European Road Freight Market Update
- There is an increased demand for trailer equipment right across Europe as companies start to look strategically at consignment stock building in preparedness for Brexit.
- The increase in demand is driving up rates and it is recommended to book with at least one week’s notice.
China’s economy expanded 4.9% in the third quarter as strong industrial growth powers recovery as the rest of the world struggles with coronavirus.
Europe’s rising coronavirus infections and new government restrictions on people’s movements raise threat of double dip recession.
Freight Market News
Cargo rollovers continue to take place across Asia’s main transshipment ports causing supply chain delays into the fourth quarter.
Brexit: deal or no deal, businesses must prepare for a mountain of paperwork as the end of the transition period approaches.
Shippers close to global deal to cut greenhouse gas emissions with almost 200 nations at talks with UN’s maritime organisation.
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