Recently the sea freight cost to different countries is not very stable due to the port congestion or decrease of the shipping lines. Here is the analysis for Asia-North America and Asia-Europe
Asia → North America (TPEB)
● Rates continue to fall on TPEB as demand remains soft relative to capacity available, especially to Pacific Southwest ports. Shipping activity has resumed in Shanghai, although the strength and timing of the volumes rebounding after two months of Covid-19 related lockdowns remains unclear. International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) labor negotiations continue as July 1st, when existing contracts expire, rapidly approaches. Intermodal bottlenecks, chassis shortages, and high fuel prices continue to pose additional challenges despite the improved balance between supply and demand.
● Rates: Levels remain elevated relative to the pre-Covid market with softening in many major pockets.
● Space: Mostly open, except in a few pockets.
● Capacity/Equipment: Open, except in few pockets.
● Recommendation: Book at least 2 weeks prior to cargo ready date (CRD). For cargo ready now, importers might consider taking advantage of currently available space and softer floating market rates.
Asia → Europe (FEWB)
● Following the Shanghai reopening, volumes are picking up again but recovery has not translated into a big surge thus far. The third quarter is the traditional peak so volumes are expected to be stronger. Uncertainties on a macro level such as the Ukraine conflict, high inflation across Europe and low consumer confidence are playing a role in actual demand levels.
● Rates: General rate extensions from carriers for 2H of June with some indicating increases for July.
● Capacity/Equipment: Overall space is starting to fill up again. Congestion in European ports is causing sailings to return to Asia late, resulting in additional delays and some blank sailings.
● Recommendation: Allow flexibility when planning your shipments due to anticipated congestion and delays.
Post time: Jun-30-2022
