Industry News

Freight Rate Update: March 2021

Ronald Vincent | M.E. Dey & Co.

Air FreightFrom Asia to the U.S. rates have gradually decreased after the Chinese New Year. Space is not an issue on most lanes. Rates from Europe have remained stable and we do not foresee rates increasing in the near future.

 

Trans Atlantic Westbound – TAWB (import)

 

  • Import volumes from Europe continue to increase. Most carriers are currently booked out almost 4 weeks.
  • We are now seeing carriers increase rates by $100 – $ 500 per container from Europe to The U.S., Canada, and Mexico. Some carriers have are planning to implement additional surcharges effective April 1st.
  • These include equipment imbalance surcharges and peak season surcharges.  The amounts of the surcharges range from $ 100 – $ 500 per container at this time.

 

Trans Atlantic Eastbound – TAEB (export)

 

  • Carriers are reporting that on many lanes vessels are departing full. Currently, the biggest issue with export cargo is obtaining space.
  • Some of this is the result of an imbalance of containers. With import volumes spiking, carriers are having to commit additional space on export voyages to move empty containers back to Asia and Europe.
  • On some lanes, carriers are turning down lower-paying loads of agricultural products which has ag exporters quite upset.
  • Some carriers have increased rates in the past month, with the average increase being about $ 100 per container.
  • At this time, some carriers are booked 2 -3 weeks in advance and we are seeing some bookings get rolled.

 

Trans-Pacific Westbound – TPWB (export)

 

  • Similar to the situation on the TAEB services, carriers are reporting that on many lanes vessels are departing full. Currently, the biggest issue with export cargo is obtaining space.
  • Some of this is the result of an imbalance of containers. With import volumes spiking, carriers are having to commit additional space on export voyages to move empty containers back to Asia and Europe.
  • On some lanes, carriers are turning down lower-paying loads of agricultural products which has ag exporters quite upset.
  • Some carriers have increased rates in the past month, with the average increase being about $ 100 per container.

  • At this time, some carriers are booked 2 -3 weeks in advance and we are seeing some bookings get rolled.

 

Trans-Pacific Eastbound – TPEB (import)

 

Space continues to be extremely tight after the Chinese New Year. Rates seem to have stabilized just a bit albeit at extraordinarily high levels.

 We have surveyed carriers, our Asia partners, and other supply chain sources. The consensus from almost all parties is that we do not see an end to the current surge of cargo. Many of us are wondering if this is still a surge or is it now a new normal level of imports.

Many persons said that the sustained increased level of imports indicates to them that this is more than just inventory replenishment from the early Covid period. The general consensus is that demand will be very strong through the end of the second quarter.

 We continue to see delayed berthing by ships at the west coast and east coast ports with many vessels sitting at anchor for 5 – 10 days while waiting for a berth. This in turn delays vessels on their return voyages and the whole circular issue starts again.

 We are now starting the yearly contract negotiations with most current contracts expiring April 30th. Under the current environment, initial rate offers are coming through much higher than the May 2020 contract rates.

 We are continuing to monitor all lanes, ports, and services to provide you with the best possible service at the best possible price.


M.E. Dey and Co. monitors the market daily to find competitive rates that pair well with exceptional transportation services. We provide fixed-rate contracts in addition to standard market rates. Contact us to talk with a representative or request a quote to get started.

ARCHIVES