Global Shipping Update

Ocean freight volume is back to pre-COVID 19 levels, if not slightly higher, and capacity very tight, especially for Asia - US freight. As a result, rates are expected to increase further with cargo rolls and tight chassis supply expected to persist through the fourth quarter.

US exports to Australia are still experiencing disruption due to the recent strikes at Patrick Ports, with some carriers not taking any new sea freight bookings to Australia at all until things settle down. Australia’s backlog is being cleared, but we have several containers stuck in Asian transhipment ports constantly being rolled from vessel to vessel while carriers struggle to fit more freight on overfilled feeder vessels. We are doing our best to manage expectations with clients who have freight in these containers and to adapt to twice-daily carrier updates and changes appropriately.

Delays are continuing at terminals in the US, particularly Long Beach / Los Angeles and New York City. The time containers spend within the port complex has increased to the highest level in 18 months. Inefficiencies at the terminals remain as a result of Covid-19 operational policy changes. For the first time in seventeen years, ships are being held in drift zones outside the anchorage in San Pedro Bay. The wait for queued ships ranges from several days to nearly two weeks according to the Marine Exchange of Southern California’s records.
Although major container ports around the U.S. are reporting some level of congestion, the ports of Southern California are experiencing the worst congestions due to high inbound volumes, vessel delays and surging COVID cases among dockworkers. Container lines have also deployed larger cargo ships on the Trans-Pacific route to meet demand. These bigger vessels require more time to unload, adding to the existing backlog.
As a result of these congestion issues, carriers have announced emergency surcharges. These vary depending on the shipping line/co-loader.

It is predicted that the congestion will continue at these levels until mid-February. Relief might come with a seasonal lull in shipments from Asia that typically follows the Chinese New Year holiday.

As per previous advisories and the widely communicated issues at the port of Felixstowe with vessels taking much longer than usual to discharge/load, delays at both Felixstowe & Southampton ports are still ongoing due to congestion, which continues to cause vessels berthing issues and container restitution.

Brexit has had a significant impact on the market as many companies ‘stock piled’ goods in the UK in preparation for delays at the border from early January 2021. As companies across the globe navigate the new regulations and documentation, Woodland recommend you check carefully as to your responsibilities with customs under the Incoterms you use with your sale and/or purchase of goods to/from the EU from January.

Woodland can act as your customs intermediary should you require one and has seen hundreds of companies safely through new Brexit regulations since January 2021.

Find all Brexit-related information here.

The grounding of the vessel EVER GIVEN in Egypt's Suez Canal has impacted vessels unable to pass on what is one of the world's busiest trade routes. As a result, shippers may switch to using air freight, resulting in reduced capacity and an expected increase in air rates.

Air freight capacity from the UK to the USA is becoming tighter, especially to Chicago and Atlanta, which can result in higher pricing - please book as far in advance as possible.

Freighter aircraft are expected to be in short supply for the next three years putting a further strain on International airfreight capacity and rates. Boeing estimates it will take three years for travel to return to 2019 levels, with the International long-haul market being the last to return to strength.
Since the beginning of the pandemic, more than 30 carriers have failed or entered bankruptcy restructuring.

Hundreds of containers bound for Rotterdam from China are delayed and vessels in transit impacted by the EVER GIVEN having become wedged across Egypt's Suez Canal, one of the world's busiest trade routes. 

While the grounded vessel has been refloated, the impact on the industry will be significant. 

For a full overview of all vessels affected, please click here. 

We’re in contact with carriers regarding possible diversion of cargo vessels in transit and will update all affected clients as soon as we can.

The Maritime Union of Australia (MUA) has provided further notice for the Protected Industrial Action covering a work ban and stoppage at Victorian International Container Terminal (VICT):

India’s container shortage could last another three months, as congestion hits Colombo and shippers call for tighter regulation of freight rates.