By Richie Lin      Photo : Nilantha Ilangamuwa 

High rate and unstable space have made Just In Time no longer a praise now.

Ocean freight rate reference in week 47:

After going down for three weeks due to power shortage in China, rumor saying rate is expected to go up in week 47 because space limitation will be amplified when Production power in China, Vietnam come back from setback of Covid-19. Additionally, port congestions happening in Los Angeles and Long Beach make carriers to delay or even cancel their schedules of Trans Pacific in December. Some vessels have waited outside the gulf of Los Angeles for almost 43 days, and still cannot berth at the terminal. Wanhai has announced they will cancel the schedules to USA to focus on the Intra Asia services. And every factory will speed up their production to ship out their orders before Chinese New Year at the end of January 2022, we can expect rate increase from December 2022 because the supply and demand will be imbalanced again.

Customer should realize that the imbalance of supply chain will maintain till June or even the end of 2022. Even though countries around the world have alleviated the lock downs, and people begin to enjoy normal life and work, it will still need at least one year to make people and governments have confidence to abandon all restrictions of international movements. So the space of ocean freight and airfreight will be still unstable in 2022, and customers should consider establish more inventory in their warehouses, Just In Time is no longer a praise now. TGL can help Small and middle-sized companies to set up warehouses in USA and Europe for establishing enough inventories to avoid any production break down.

Following rate reference in week 47.

• Asia main ports to USAWC USD 10000~12000 per 40GP;
• Asia main ports to USAEC USD 14500~16000 per 40GP;
• Asia main ports for IPI points of USA is USD 17500~20000 per 40GP.

Please note above rate is only for reference, carriers might only give space for higher rate, which will be from USD 15,000~25,000 per 40GP for different destinations.

Airfreight market rate in Week 47:

The airfreight is updated each week to match the market situation. The following market rate for your reference.

• PVG/SZX/HKG/TPE to LAX USD 17.0/kg,
• PVG/SZX/HKG/TPE to ORD USD 17.8/kg,
• PVG/SZX/HKG/TPE to JFK USD 21.0/kg.

Airfreight rate will keep increasing in November because ocean freight is too late for Thanksgiving and Christmas products to be put on shelves of stores on time.

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.