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Aug 20,2021

Shipping market dynamics in week 33

Asia:

 

China's Shanghai Pudong International Airport (PVG) has implemented strict control measures, resulting in a shortage of manpower and an increase in the turnover time of incoming and outgoing cargo. Some airlines have cancelled some capacity, causing serious delays in many flights. If control measures continue, prices are expected to rise.

 

The market in Hong Kong, China is picking up rapidly, and the space situation is very tight, and prices are expected to rise as a result. Sea-to-air transportation has also caused a problem of tight capacity, and this situation may continue until September.

 

With the arrival of the peak season in Taiwan, China, sea-to-air services have become more frequent, while the shipping situation is still restricted. Spaces are tightening rapidly, and carriers have announced that they will increase Air freight service prices starting later this month.

 

Vietnam Demand outside of northern Vietnam remains strong, and the situation is expected to continue until the end of August. Due to the tight space, the price is expected to increase in the second half of the month. The new crown epidemic in southern Vietnam still exists, and more than half of the factories are still closed, resulting in weaker demand.

 

Air freight service

 

Europe:

 

Due to the summer holidays in Europe, the volume market is relatively calm. The current capacity can meet the demand for freight to the United States, and the price remains stable.

 

Demand and capacity in Latin America are still tighter than in the United States.

 

The cargo volume of the Far East route was stable this week, and the price did not rise significantly this week. However, due to the restrictions of the new crown epidemic, we expect that imports from northern China will be disrupted, especially to Shanghai Pudong International Airport (PVG). Airlines are unwilling to accept more cargo and hope to have more time to revolve export flights.

 

In view of the restrictions on trans-Pacific routes and the reduction in capacity caused by the new crown epidemic, some European carriers provide solutions for shipping to the United States via Europe to better optimize their shipping networks.

 

Air freight service

 

There are still delays in the handling of ground cargo at O’Hare International Airport (ORD)/John F. Kennedy International Airport (JFK)/Los Angeles International Airport (LAX). If time permits, consider choosing a second-tier airport, such as Washington Dulles (IAD) / Boston General Logan International Airport (BOS) / Detroit Wayne County Metropolitan Airport (DTW).

 

Americas:

 

From July 1, 2021, all air cargo exported from the United States must be 100% inspected! The goods waiting for the ground crew to separate are still piled up in mountains. Many companies have implemented new and longer delivery times for export goods in order to leave a buffer time, and are still exploring a suitable work rhythm.

 

U.S. export demand remains stable, while U.S. air exports are experiencing some controllable capacity restrictions. For bulk cargo that departs from all major exit gateways in the United States, it may take 2 to 4 days from booking to departure to major destinations in Europe and Asia. The transportation capacity from the West Coast and Midwest Gateway to Central Europe (AMS)/(CDG)/(FRA) and Asia (PVG)/(HKG)/(NRT)/(TPE) is the most tight, while the east coast’s capacity remains balanced and balanced. Controllable.

 

The space for Air freight services to India has increased, but the space for Nepal, Bangladesh and Indonesia is still very tight because of the severe epidemic in these areas and a large amount of relief supplies are waiting to arrive.

 

Air freight service

 

Los Angeles International Airport (LAX)/Chicago O’Hare International Airport (ORD)/New York Kennedy International Airport (JFK) faced a large cargo backlog and began to use off-airport facilities to deal with the influx of cargo. The delay period for ground crews to sort the cargo on inbound flights is as high as 2-5 days. The earliest processing time for export goods is 2 days before flight departure. The most congested cargo terminal of the carrier has begun to restrict or ban American exports, and the recovery time will be notified separately.


Truck transportation resources are still in short supply, including airport transshipment, local pick-up and national delivery in the United States. The situation around large international import and export hubs is particularly serious.

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