By Richie Lin      Photo：Skitterphoto

Lock downs in Shanghai has worsen the imbalance of supply and demand in global logistics, and will push up the rate level in the following weeks.

Surging Covid-19 cases in Shanghai have caused another setback in global supply chain. From March 26^th on, districts of Shanghai have begun lock downs gradually, and will not be released until having chances to reach zero cases. Shanghai port is still operating and truckers can still deliver or pick up containers to/from port, but strict covid-19 rules have reduced labors in port and drivers. Shanghai is facing the same congestions happening in Los Angeles, vessels are spending more time to berth, loading and unloading containers. In the past two weeks, it has increased 5 times vessels waiting outside Shanghai port and already influenced 14% of worldwide ocean capacity. Because there will be more and more vessels waiting outside the coast of Shanghai, so shipping lines are deducing their schedules to Shanghai to avoid further delays. In total of 576 scheduled sailings on major routes such as the transpacific, transatlantic, Asia-Nordic and Asia-Mediterranean, 48 sailings were cancelled between weeks 13 and 16, a cancellation rate of 8%. And during this period, 75% of blank sailings will occur on the trans-Pacific eastbound trade lanes, primarily to the USA West Coast. Lock down in Shanghai has worsen the imbalance of supply and demand in global logistics, and will push up the rate level in the following weeks. Customers should prepare that rate level will not drop significantly and the problems of shortage of labors and containers within 2022.

Ocean FCL rate reference in week 14:

• Asia main ports to USAWC USD 9000~16500 per 40GP; 
• Asia main ports to USAEC USD 12500~18500 per 40GP; 
• Asia main ports for IPI points of USA is USD 16500~22500 per 40GP. 
• Asia main ports to Europe base ports and West Mediterranean: USD 14000~15000 per 40GP.  

Please note above rate is only for reference, carriers might only give space for higher rate, which will be from USD 12,000~25,000 per 40GP for different destinations.

Airfreight market rate in Week 14:

The airfreight is updated each week to match the market situation. Many airlines cancel their flights from/to Shanghai because of shortage of man powers in Shanghai Pudong airport. Airfreight rate might increase abruptly without further notice. The following market rate for your reference. 

• PVG/SZX/HKG/TPE to LAX USD 12.3/kg, 
• PVG/SZX/HKG/TPE to ORD USD 13/kg, 
• PVG/SZX/HKG/TPE to JFK USD 14.0/kg.

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