Fourth Quarter Updates
Of course plenty is still up in the air but hopefully this is the quarter where we at least get some clarity on a few key issues (not the least of which, our next President) – which will shape policies and adjustments for some time to come.
Well documented over these last months is the continued operational breakdowns throughout the supply chain - from a lack of equipment, vessel space or consistent transit times to significant port congestion, lack of chassis and truck shortage.
According to the various carriers we have spoken to, they don’t expect this to change anytime soon. Attached a few fun facts and validation from various sources that the pain you are experiencing is not all in your head or “fake news”.
We should all continue to expect a bumpy ride.
Ocean Freight Rates
- Up until today a real mixed bag carrier by carrier, no carriers are announcing rates but instead quietly adjusting according to their specific market intention
- Nov 1. HPL and ONE intend to impose GRI at around $400 but no official notice or update is published so far.
- Wan Hai increase $150 from Vietnam
- COSCO increases 45’ rates by $300
SpaceDemand remains strong for all lanes especially for EPRC and Vietnam. Most of the vessels are fully booked until mid Nov in these regions.
- Vietnam, Ningbo, Shanghai and Busan are experiencing heavy port congestion with significant vessel delays.
- Feeder connection in Tianjin is still affected by the port congestion in Busan.
- Vessel delay in Ningbo and Tianjin is up to 5 days and 14 days respectively and about 1-2 days in other areas.
- Current space situation for different China origins can be found in the spreadsheet attached.
- Most of the China origins are encountering equipment shortage for 40HQ and 40GP especially in SPRC and Vietnam.
- Equipment supply for certain carriers in some origin become critical and carriers started limiting the space released for certain equipment.
- Local equipment situation can be found in the Space situation tab as attached.