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Trans Pacific Imports = Updates for Peak Season Surcharges
Holiday Peak Season volumes remain high and the demand for equipment and vessel space remains tight for cargo exiting Asia, primarily from China, Taiwan and India.
Customers are still encouraged to forecast equipment size and types as early as possible (i.e., 3 weeks if possible). It is expected that beyond August, PSS levels should stabilize and no further adjustments will be made until the end of Peak Season around November 1, 2010. However, those conditions are subject to change depending on carrier allotments of vessel and equipment supply versus the strong market demand that the Asia to USA market is currently experiencing.
Several carriers have introduced increased PSS surcharges from mid-July through the remainder of Peak Season, with levels in the area of $600 per 40' standard, other sizes per formula. Additionally, North China remains especially tight and ports including Dalian were recently impacted by a fuel leak disaster on July 16, which will impact port operations throughout peak season.
Should you have questions, please contact your AIT representative.
Global Active Container Ship Roster Grows
The current intense peak season "crunch" from Asia for availability of containers and vessel space on container ships illustrates the economic principles of supply and demand at work. While carriers have held back, or "idled" available container and vessel fleets to recoup profits, the import community has continued to pay the price.
Industry news throughout late July pointed to a spike in air freight this peak season due to the continued limited supply of space as ocean carriers remained conservative in releasing vessels and containers back into the fleet.
It appears the tides may be turning as 2011 approaches. Alphaliner reported in late July that over the past six months, the "idle" fleet of container ships throughout the world shrank to only 2 percent from 11.6 percent. While only 274,000 TEUs of ships sit inactive, where is the relief in rates? This number stood at over 1.5 million at the beginning of 2011.
Ships appear to be hitting the Asia-Europe tradelane with priority, while fewer are entering the Trans Pacific trade between Asia and North America. For now, a "lag" exists in any corresponding rate stability or even market level rate reduction in the Trans Pacific trades, in part because these ships are hitting during peak season. Time will tell what happens after peak volumes are shipped this season, but hopefully rates will stabilize and calm the waters as the 2011 contract season approaches at the end of Quarter 1 in 2011.
Source: http://www.joc.com/maritime/idle-container-ships-fall-2-percent-world-fleet
August Congestion Alert!
At press time, the following port locations were reporting potential congestion:
- Bangladesh (Chittagong)
- Canada (Montreal) = Due to a recent port workers strike.
- China = Remains at critical congestion stages as peak season commences. North China (Qingdao, Xingang, Tianjin, Shanghai and Ningbo) remains the most congested. Dalian recently experienced an oil leak causing port closures.
- Colombia (Buenaventura)
- India (Nhava Sheva) = Congestion remains in effect due in part due to Peak Season.
- Jamaica (Kingston) = For both transshipment/relay and direct cargo.
- Korea (Busan) = As a transshipment point, the port remains heavily congested for relay cargo.
- Nigeria (Tincan/Apapa)
- North African Ports (Tripoli / Algiers)
- South African Ports
- Venezuela (Puerto Cabello/Guanta) = Venezuela shipments require prior approval.
- Vietnam (Haiphong)
- West Africa (Luanda / Angola)
Please be advised that ocean carriers may temporarily enact "Port Congestion Surcharges" in times of peak volumes. Speak with your AIT representative in the event of any questions or concerns.
Congestion is a common "theme" in ports throughout the world and port or trucking strikes have been reported across the globe. Indeed, world trade seems to be active everywhere! While these pressure points are a challenge to our customers, they are signs that the global shipping community is vigorous and a return to stability in rates and service will soon follow. The entire AIT Ocean Systems team thanks our customers for the great support during this summer and we look forward to serving you as Peak Season moves into full swing!
If you have any questions or comments regarding the Ocean eNewsletter,
please contact Kevin Krause from the AIT Ocean Department. |
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