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Welcome to Rhenus Monthly Market Intelligence! Check out the latest logistics news below:
OCEAN FREIGHT MARKET NEWS
// Trade Lane Rate Index Analysis (Source：FreightOs)
China/North Asia to Med (USD:933/FFU)
China/East Asia to North America WC (USD: 5543/ FEU)
China/East Asia to North America EC (USD: 7373/ FEU)
China/East Asia to North EU (USD: 8303/ FEU)
// Asia to Europe
A. The cost to move goods in a shipping container to Europe from Asia surged above $10,000 for the first time on record, as exporters and importers struggle with stretched supply chains. (Source: Bloomberg)
B. The rate for a 40-ft. container from Shanghai to Rotterdam rose to $10,174, 3.1% higher than a week ago, 485% above a year ago and the highest in records going back to 2011. (Source: Drewry World Container Index)
C. Container rates are surging because demand is outstripping the availability of the 20- and 40-ft. steel boxes that carry most of the global trade.
// Chartering
Net fleet growth cannot cater extra demand:
The chartering companies are having much higher rates
And locking those rates for a much longer validity
// Containers
A. Container volumes grew in Q1 of 2021 for most major ports globally, as evidenced by the reports released by major trades. However, Europe’s main container ports are receiving far more boxes than are departing, according to Container xChange. The increase in imports comes after the blockage of the Suez Canal by Ever Given caused huge tailbacks of ships, and the canal’s unblocking released the queue of laden vessels on their way to Europe. (Source: SeaTrade Maritime)
B. Three of the largest container lines in the world have announced a substantial number of rate increase measures to be implemented later in May and in early in June. (Source: Container-News)
// COVID-19 Effects
As of 3rd June 2021, the Guangdon province has reported a total of 102 cases of Covid-19. As some cases were in the Yantian International Container Terminal (YICT), all workers have had to take mandatory nucleic acid tests. Additionally, a lot of delayed arrivals of ships at the port have caused the terminal to be almost occupied by export FCL, which is seriously affecting the operational efficiency and traffic congestion at Yantian. (Source: Shipco Shenzhen advisory)
// Demand / Congestions/ Imbalance
A. Calls to Develop U.S. Port Information Infrastructure:
Danish consultancy Sea-Intelligence reported last month that before the pandemic, North American trade was structurally responsible for 40-45% of the empty imbalance needed in Asia. In the wake of the pandemic, that imbalance has increased to 55-60%. Port of Los Angeles executive director Gene Seroka said there was a disconnect between imports and exports. He explained that most imports coming through the Port of Los Angeles go to major metropolitan areas. However, most exports come from rural America. “There are plenty of containers. They’re just not in the right location”, he said. (Source: Splash247.com)
B. Congestion levels at the major North America container gateways are now expected to persist until the summer, as the consumer-driven import boom continues. (Source: Loadstar)
C. An indirect effect of the global situation is US produce shippers face new export crisis: now pallets are in short supply. (Source: Loadstar)
AIR FREIGHT MARKET NEWS
A. Air Cargo volumes recovering to pre-covid levels. Rate levels still higher but drop 12% year on year. (Source: Airfreightnews)
// YEAR-ON-YEAR CHANGE OF CHARFERABLE WEIGHT
B. China Airlines has warned that around 10% of its cargo capacity will be affected as its pilots are required to quarantine for 14 days. The quarantine requirements were introduced by Taiwan earlier in the week in response to an outbreak on the island linked to the airline’s pilots and a hotel where they stayed. (Source: Aircargonews)
C. Airfreight rates from Hong Kong to North America increased in April as a combination of capacity shortages and rising demand hit the market. Baltic Exchange Air Freight Index (BAI) figures show that in April the average price on services from Hong Kong to North America increased by 54.7% compared with a month earlier. (Source: Aircargonews)
D. Getting ready for vaccine shipments, Atlas Air Worldwide subsidiary companies, Atlas Air and Polar Air Cargo Worldwide, have both received IATA CEIV Pharma certification. The certification confirms the carriers’ capability of handling temperature-sensitive pharma goods to IATA’s globally recognized standard. (Source: Aircargonews)
E. IATA is predicting a positive outlook for air cargo demand and believes it will continue to improve as the vaccine rollout progresses and belly-hold services pick up. (Source: Aircargonews)
// RECORD HIGH FOR AIR CARGO TONNE KM FLOWN IN MARCH
Cargo tonne km (CTKs) flown rise 4.4% above pre-crisis March 2019 level
RAIL FREIGHT MARKET NEWS
A. In May, the China - Europe train service added a new route: Changchun-Hunchun-Europe. The test train carried 108 TEUs of auto parts and other goods, departed from Changchun Xinglong railway station, passing through Hunchun railway station, headed towards Poland, Germany and other European countries. (Source: Xinhua News)
B. As of May 6th, 2,014 number of inbound and outbound China-Europe trains had crossed the Alashankou border. In the previous 4 months, there were 1,918 inbound and outbound China-Europe block trains crossing the border, with a value of US $10.01 billion. This was an increase of 56.7% and 80.5% respectively over the same period last year, signifying a substantial increase in both quantity and business. (Source: Xinhua News)
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