TRANSPACIFIC MARKET REPORT – UPDATE 5/11/2021

**Due to extreme volatility these are subject to change without notice.  This information is for information and planning purposes only.**

PART I – TRANSPACIFIC RATES TREND & MARKET INFORMATION

After a period of stability, transpacific carriers are rolling out a raft of new GRIs and PSS, effective 1 June. The announced amount is generally USD1000/40’.

Market capacity on all services is oversold. In the weeks before, it is especially difficult to secure space on the all-water services from Asia to USEC and Gulf. Now it’s even hard to get a slot to USWC. Carriers like WHL and MSC, tried to find solution to replace LA/LB, then they have added service or calling to Oakland/Seattle/Tacoma. Now Oakland has become another issue. WHL has a new svc to Oakland in May, but once they got there for the first sailing, vessel is stuck there and they have to change it to biweekly as the vessel is serious delay. Other carriers are also facing “structural blank sailing”. As the port congestion is serious, carriers have to temporarily skip a port in order to speed up the turnaround time.

There is no realistic improvement on the horizon. In fact, the upward revision to US import projections sends a message that tight vessel capacity and marine congestion issues are far from over. Shippers are in very very bad situation, with widespread equipment shortages, vessel delays and supply-chain congestion at ports, terminals, rail yards and warehouses, which are all restricting the effective vessel capacity in the US trades. Given current market chaos, it’s no surprise that freight rates remain at peak levels or keep rising.

FAK rates have increased dramatically. Based on our checking with COSCO and MSC, the FAK level for the 2nd half of May will be USD4,500-USD4,800 to USWC & USD5,800-USD6,100 to USEC. But less and less space can be released under FAK. Carriers are cutting back FAK allocation and push more capacity to premium service only. Even so-called premium services that should have included guaranteed equipment and vessel space – at rates as high as $6,000 to $8,000 per FEU to the West Coast (we’ve been seeing USD10,000 now) – are oversubscribed this year, and in many cases, with no guarantee on space and equipment for now. Carriers are finding it increasingly difficult to guarantee space when import volumes increase further as the peak season approaches this summer.

The maritime consultant predicts average rates – a blend of spot, contract, backhaul and regional trade rates – will increase about 23% this year; but for some headhaul routes, the hike would be “substantially higher”. It’s expected that the extreme freight rates on the transpacific trade will last for at least another three to five months.

NAC long-term Fix Rate Contracts

The fix rate contracts filing for this year is nearing to its end. All carriers have stopped accepting any new fix rate requests. It’s expected that all rate filing would be closed in this week.

Although the new contracts will take effect from 01 May as usual, releasing fix space in May seems like a daunting task. Given the fierce blank sailing plan, the continuous container shortage and the heavy backlog from the last couple of weeks, it is hard to find a slot in May. Our origin offices need check available space per sailing case by case, and the earliest will be in end-May or early-June. For USEC, at some main ports like Shanghai, it might have to go to the end of June.

In the light of present situation, for all customers who have signed 2021-2022 fix contracts, we need your assistance to get their monthly volume forecast. For now we need the forecast for June and July, then we can guide the origin offices to arrange booking at earlier time and guarantee fix space as possible as we can.

New Service

TP23 (Maersk) / Liberty (MSC) / ZSE (ZIM)
2M new USEC service will start from the first sailing E.R KOBE 120E/ ETD Vietnam on 22 May 2021.
Routing : Vung Tau (CAI MEP) – Yantian – Panama Canal – Charleston – Savannah – New York
2M also adjust TP17/America/Z7S service and TP16/Emerald/ZSA service by dropping Charleston call.
TP17/America/Z7S service à effect from Axel Maersk 12W / ETA 30th June
TP16/Emerald/ZSA service  effect from Seamax Fairfield 5E / ETA 07th July

Premium surcharge
Most carriers have increased Premium surcharge from 01 May. The difference is around USD500 to USD1000 per container. And most of them will go to the 2nd round of rise from 15 May. Meanwhile, the cancellation fee (they say admin fee) is also higher than before. It’s all about space nowadays. (Attached pls find the latest Premium Service List for your reference.)

PART II – TRANSPACIFIC SPACE SITUATION

Current Space status in China from WK20 to WK22 :

Current Space status in S.E Asia & Korea from WK19 to WK24 :

Here is an updated booking status of Vietnam, Malaysia, Thailand Indonesia, India, Cambodia, Korea and Philippines.

Vietnam:

ONE/COSCO : only release space within our allocation.

MSC : release diamond rate only, no FAK

HMM : release premium space only to USEC

WHL : release space to OAK/SEA under Premium only

Malaysia:
Equipment status : Serious shortage at Pasir Gudang/ Tanjung Pelepas for 40’/40HC
Port status : Port congestion at Port Klang (West) and Tanjung Pelepas.

Thailand:
Overall space is very full in May. Need 4 weeks to arrange booking in advance.
ONE/CMA/ZIM : only release space within our allocation.
YML release premium only, even premium space is not available until the end of MAY.
EMC will start new service to GULF first ETD 13 MAY share space with ONE EC6
MSC release space to EC and GULF under premium only, even premium space is not available until the end of MAY.
CMA all size containers are in serious shortage at BKK & LCB.

Indonesia:
ONE release space within our allocation only.
CMA/HMM/MSC release Premium/Diamond space only.

Cambodia:
Booking forecast is FULL till week 24 and onward.
ONE/ZIM/CMA /HMM are shortage of equipment.

Korea:
Space : Overall space to both USWC & USEC are exhausted till WK 23, and booking window is not yet open for WK 24.
At Busan, all carriers equipment status are still tight. CMA(20/40/40HC) and MAERSK(40/40HC) are shortages at present.
Blank sailing : PN3,PS8(W19), PN3,PS6, PS8(W21)

Philippines:

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PART III – TRANSPACIFIC BLANK SAILING AND EXTRA LOADER SUMMARY

[FILE OMITTED]

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PART IV – EQUIPMENT SITUATION

Maersk : Given increasing demand in in Qingdao, 40’/40HC will be tightly covered. In South China and East China, 40HC is in shortage but can cover SPOT.
CMA : All size containers are in severe and widespread shortage at all ports.

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Part V – ASIAN OFFICES STATUS UPDATE ON WEEK 19

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PART VI – HOLIDAYS NOTICES (in June 2021)

Hong Kong Office – Public Holidays
Tuen Ng Festival : 14 June 2021 (Monday)

China Branch Office – Public Holidays
Dragon Festival : 12 – 14 June 2021 (Saturday to Monday)

Taiwan Branch Office – Public Holidays
Dragon Festival : 12 – 14 June 2021 (Saturday to Monday)

Malaysia Branch Office – Public Holidays
Agong’s Birthday (King Birthday) : 7 June 2021 (Monday)

Vietnam Branch Office – Public Holidays
June 2021 – No Public Holiday in Vietnam

Thailand Branch Office – Public Holidays
H.M. Queens Suthida Bajrasudhabimalalakshana’s Birthday : 3 June 2021 (Thursday)

Indonesia Branch Office – Public Holidays
Pancasila Day : 1 June 2021 (Tuesday)

Korea Branch Office – Public Holidays
June 2021 – No Public Holiday in Korea

India Branch Office – Public Holidays
June 2021 – No Public Holiday in India

Cambodia Branch Office – Public Holidays
King’s Mother Birthday : 18 June 2021 (Friday)

LA Office – Public Holidays
June 2021 – No Public Holiday in LA

Philippines Branch Office – Public Holidays
Independence Day : 12 June 2021 (Saturday)

Please be reminded that if Air Freight imports are needed due to lack of available space via Ocean please contact our team for quotes and available space at iGLiNTL@iGLNOW.COM

With all the manufacturing and space issues in Asia, and need to order in bulk to US, if you need warehouse space in the US, please contact us. With over 400,000 square feet of warehouse in multiple locations in NC/SC/TX/AZ we can help with importing-storing and distributing your goods anyplace in the US.  Please contact your local sales representative or simply email us at IGLINTL@IGLNOW.COM to get more info on your particular need.

End of report.