Customer Advisory: Freight Market Update l April 2023

Customer Advisory

Dear Valued Customer,

The pace of volume recovery following the Chinese New Year holiday is still sluggish, and there are no indications of any sudden spike in volumes anticipated for March 2023. The direction of rates beyond that point will depend on overall market conditions in Q2. This may result in service cancellations and capacity reductions as carriers strive to bridge the gap between fixed and floating rates. As the 2023 ocean freight Request For Proposal (RFP) season gains momentum, we anticipate that fixed rates will stabilize by the end of April. Global port congestion is improving, both on the East and West coasts, as vessel dwell time decreases weekly due to reduced demand.

Yusen Logistics teams continue to monitor conditions and work diligently with our ocean, air, and ground transportation partners to meet customer requirements. To ensure we can plan accordingly, provide your shipping forecasts to your local Yusen representative as soon as possible. We recommend booking at least 4 to 6 weeks in advance to avoid issues like longer truck turnaround times or limited vessel availability. If unexpected challenges arise, we have a range of alternate services, including LCL Express and Ocean/Rail/Air combination options.

Below is an overview of the market situation across major shipping trade lanes. Please feel free to contact your Yusen Logistics Account Representative for any questions.

Sincerely,

Your Yusen Logistics Team

GENERAL OVERVIEW

Infrastructure upgrade sparks cargo logjam at Nhava Sheva. Read More>>
Capacity loss nearing pre-pandemic normal. Read More>>
Strong capacity correction on Asia-NAWC. Read More >>
Schedule reliability dips slightly M/M in January 2023. Read More >>
April blanks from China grow as U.S. import decline continues. Read More>>
VLSFO 20 ports average index at $612.50 per mt at the time of writing. Read More>>
OPEC Announces a Surprise Cut in Crude Production. Read More>>

TRANSPACIFIC EAST BOUND (TPEB)

East Coast: Dwell times remain lower, with an average of 0-2 days.
Savannah: Waiting time for vessel berth at the terminal is up to 2 days, depending on vessel size.
New York: 1 day waiting time expected for berth at Global Container Terminals Bayonne, Maher Terminals LLC and APM Terminals.
Port of Los Angeles: Dwell times for local import cargo is 3 days, and on-dock rail dwell is 3.6 days.
There is no vessel berthing delays in Tacoma. However, in case of delays at departure ports overseas, delays of up to 2 days are expected.
Prince Rupert is now only experiencing 1-day vessel wait times with rail dwell below 4 days.
In Vancouver, vessel wait times have dropped to just three days, down from 10 days in early March. Rail continues to be challenging, with the average departed rail dwell sitting at seven days.

TRANSPACIFIC WEST BOUND (TPWB)

No expected changes in overall trade capacity going into Q2.
Space is available across all major services, with carriers looking for volume.
Specific lanes are seeing some slight downward rate pressure as carriers attempt to entice volume onto these services.
Dry equipment supply is ample throughout. However, chassis availability may be low at some IPI locations.

TRANSATLANTIC EAST BOUND (TAEB)

U.S. West and Gulf Coast services continue to see solid utilizations.
Capacity continues to be available from the U.S. East Coast.
Rates remain stable after some downward adjustments on U.S. East Coast rates in late Q4/early Q1.
Service capacity is expected to remain unchanged going into Q2.
Dry equipment is readily available across most markets, but chassis availability still needs to be improved in some inland locations.

LATIN AMERICA SOUTH BOUND (LATAM)

Schedule reliability has been improving as bottlenecks at transshipment hubs have lessened.
Space availability from U.S. Gulf ports is also improving.
Expectations of a slowing economic outlook for Latin America in 2023 remain unchanged, with lower consumer consumption as a result.

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AIRFREIGHT:

We have air cargo space allocations with partner airlines and full and partial charter space on major Transatlantic and Transpacific routes. Weekly round-trip charter flights are available from the US or Canada to Asia & Europe. Contact us to discuss any urgent needs so that we may respond to an upcoming charter that may fit your immediate or short-term needs.

OCEAN FREIGHT:

Our LCL Express Service is a faster ocean freight alternative for imports from Europe and Asia into the U.S., with shorter transit times than regular less-than-container load (LCL) services. Up to 7 days faster transits from origin to destination and significantly less cost than shipping via airfreight. We have guaranteed space capability and priority on several sailings a week.

CONTRACT LOGISTICS:

If you’re holding more inventory than usual due to supply chain delays, we have warehousing space available to support your temporary or long-term storage needs. We currently have some space capacity in Sumner (Seattle), WA, Atlanta, GA, Dallas, TX, Indianapolis, IN, Laredo, TX, Miami, FL, and Waco, TX. Additionally, we can work on solutions to provide yard space in key markets.

SUPPLY CHAIN SOLUTIONS:

Shipment visibility is more important now than ever and our Yusen Vantage platform can provide you access to real-time data to make better decisions faster. You manage all events as they happen and mitigate any risks that can delay your cargo or result in extra costs like demurrage fees. Our Specialized teams cover a vast array of freight and cargo management services, from origin to destination, across air, sea, and land. Let us design a solution for your supply chain needs.