By Richie Lin           Photo : Solømen 

Even market is expecting rate will decrease in the long run, customers still chose to arrange shipments as sooner as they can because they are afraid that congestions might happen in the ports of USA again in the third and fourth quarters.

This week, some factories in Shanghai, Kunshan, Suzhou began to operate and arrange shipments after over 6 weeks lockdown. And it became easier for truckers to pick up containers from factories if they can apply to officials several days before the pick-up date. But the space supply is still bigger than the demand in the market, so shipping lines keep using blank sailings to keep up the rate. Between weeks 17 to 23, according to a research, THE Alliance will blank 33% of its scheduled sailings from Asia, the Ocean Alliance will void 37%, while the 2M alliance of MSC and Maersk will cancel 39% of its scheduled voyages. The Asia to USA route occupied the highest amount of blank sailings for the past five weeks. Shipping lines are using every leverage to extend their honeymoon once in a life time.

Market is expecting rate will go down around third quarter but there are still several variants. First of all, when will be Shanghai fully relieved from Lock down? If the lockdown is kept for more weeks, it will take much longer to digest the postponed shipments from Shanghai. Secondly, can the transit time be improved to the same level before the burst of Covid-19. Waiting time outside of the Los Angeles is shorter than weeks before but the total transit time, especially for inland containers is not improved because there is still lack of equipment to unload the containers and transfer them to rail ramps. Thirdly, will inflation and high gasoline really damage the consumption? Customers are still giving orders to their suppliers to produce for the consumption of seasonal greetings. Influenced by the above three points, even market is expecting rate will decrease in the long run, customers still chose to arrange shipments as sooner as they can and even signed long contract rate with shipping lines because they are afraid that congestions might happen in the ports of USA again in the third and fourth quarters.

Ocean FCL rate reference in week 20:

• Asia main ports to USAWC USD 8500~14500 per 40GP; 
• Asia main ports to USAEC USD 11000~15500 per 40GP; 
• Asia main ports for IPI points of USA is USD 15000~18500 per 40GP.
• Asia main ports to Europe base ports and West Mediterranean: USD 11000~14000 per 40GP.  

Please note above rate is only for reference, carriers might only give space for higher rate, which will be from USD 10,000~20,000 per 40GP for different destinations.

Airfreight market rate in Week 20:

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 10.3/kg, 
• PVG/SZX/HKG/TPE to ORD USD 11.5/kg,
• PVG/SZX/HKG/TPE to JFK USD 13.0/kg.

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