By Richie Lin      Photo：Magda Ehlers 

The number of Durable Goods Orders in June was only 1.85 if we deleted the orders of airplanes and defensive equipment. 1.85 of June marked the lowest point in two years which meant companies in USA are still concerned about the sales of their products in several months and will keep restraining cautiously on issuing orders and productions. Basically, it will take 3 months from receiving the orders to manufacturing the products. Therefore, economic indicators happening in this month will have at least 3 months’ ripple effects. This means customers will not have many demands on the ocean freight, airfreight, or any other types of logistics after October 2023. Under normal circumstances, the less the shipments are in the markets, the more smoothly the shipments can be arranged. However, the transit time hasn’t come back to the situation before the outbreak of pandemic in 2020. It usually takes 30 days from departure at the ports of Asian countries to the actual delivery at the inland cities of USA such as Chicago or Detroit. But we can see the transit time takes 40~50 days for the same route. This is the combinations of shipping lines’ blank sailings, labor shortage in ports, railway companies and trucking companies. We have seen so several possible strikes looming around the markets even though governments have tried very hard to negotiate a possible deal to suppress the strikes. Besides of the human behaviors to pursue the greatest interests, mother nature also struck a blow to the fragile supply chain. Panama Canal is just experiencing the worst draught since it was established 100 years ago. The latest report shows that there are around 294 vessels waiting for the pass-through of Panama Canal. People estimate the transit time from Asian ports to base ports of US east coast will be around 50~60 days. This is the double of recorded transit time. Nowadays, suppliers and buyers all face more and more challenges in the global supply chain. Shipping lines will keep using blank sailings and slowing down the sailing speed of vessels. Blank sailings can restrict the containers allotment in the market to maintain the rate level or even trying to increase the rate.  And when shipping lines slow down the speed of vessels, it is hard to assume precisely when the products can arrive to customer’s door because you cannot have predictable transit time. Inflations caused by pandemic and labor shortage also made crucial service providers in supply chain such as trucking companies and warehouses to maintain their charges even you go to them with huge volumes. Right now, customers need an all-around logistics provider to provide logistics from multiple countries to multiple countries including pick up, customs clearance, freight forwarding, warehouse management and last mile door delivery. This logistics company must have full-fledged data, knowledge, experiences and networks to provide such a complicated cargo movement. Furthermore, a total logistics provider must also have well-designed IT system to provide 24 hours online tacking to track each purchase order transparently, and VMI to provide real time products in/out and inventory in different warehouses. Whether customers locate in Asia, USA or any continents, they shall begin to contact with real total logistics providers to delete the unnecessary costs and information blocks in the supply chains.

FCL market rate reference in week 34:

• Asia main ports to USAWC USD 2200~2300 per 40GP; 
• Asia main ports to USAEC and Gulf coast USD 3300~3500 per 40GP; 
• Asia main ports for IPI points of USA is USD 4200~4700 per 40GP. 
• Asia main ports to Europe base ports and West Mediterranean: USD 2000~3500 per 40GP.

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