Shipping

Ningbo Terminal Update – COVID shutdown – Aug-13-2021

Dear valued customers,

 

On 8/11/2021 (Wed), Ningbo terminal had a worker who tested positive for COVID-19 and is raising the specter of a Chinese port meltdown given officials’ aggressive effort to contain the pandemic and pre-existing vessel congestion in Ningbo and nearby Shanghai.

If you ship cargo with us via YML, WHL, MSC which is not calling at Ningbo Meidong Container Terminal or Meishan terminal, no impact at this moment, but risk is that as congestion builds at Ningbo, which is China’s second-largest container port, it will spread to other ports, which happened when Yantian International Container Terminals (YICT) partially shut down for four weeks from late May, congesting neighboring marine terminals in Southern China.

As of Wednesday, there were 28 container ships at berth and anchored in Ningbo, totaling 186,749TEU in capacity, there are 113 container ships totaling roughly 417,000 TEU in capacity at the Port of Shanghai, the world’s busiest cargo gateway.

With this sudden suspension, we expect a delay in planned sailings that might affect your cargo planning. The main issue is if Ningbo port is closed for some days or one week, there will be a binger impact at the other terminals too.

In addition, since there are a lot of cancelled sailings in August, some shipments will definitely be carried over to September.   If you have cargo that did not ship yet or can’t get space secured for September, the next available one would be in or after mid-October, since China’s national holiday will be from October 1st to 7th, Hence, the space in September will be VERY tight, especially the week before the holiday.

Please send your new booking to us EARLY, so it would be better for us to secure the space from carriers for you in the next few months.

Please do not hesitate to reach out to your sales representative if you have any questions. We thank you for your support!

Container shipping rates between U.S. and China exceed $20,000, hitting a record

Source from : China-U.S. container shipping rates sail past $20,000 to a record (cnbc.com)

KEY POINTS

  • Container shipping rates from China to the United States have scaled fresh highs above $20,000 per 40-foot box.
  • The acceleration in Delta-variant Covid-19 outbreaks in several counties has slowed global container turnaround rates.

 

Container shipping rates from China to the United States have scaled fresh highs above $20,000 per 40-foot box as rising retailer orders ahead of the peak U.S. shopping season add strain to global supply chains.

The acceleration in Delta-variant Covid-19 outbreaks in several counties has slowed global container turnaround rates.

Typhoons off China’s busy southern coast in late July and this week have also contributed to the crisis gripping the world’s most important method for moving everything from gym equipment and furniture to car parts and electronics.

“These factors have turned global container shipping into a highly disrupted, under-supplied seller’s market, in which shipping companies can charge four to ten times the normal price to move cargoes,” Philip Damas, Managing Director at maritime consultancy firm Drewry, said.

“We have not seen this in shipping for more than 30 years,” he said, adding he expected the “extreme rates” to last until Chinese New Year in 2022.

Rate hikes

The spot price per container on the China-U.S. East coast route – one of the world’s busiest container lanes – has climbed over 500% from a year ago to $20,804 this week, freight-tracking firm Freightos said. That compares to just under $11,000 on July 27.

The cost from China to the U.S. west coast is a little below $20,000, while the latest China-Europe rate is nearly $14,000, Freightos’ data shows.

Ding Li, president of China’s port association, told Reuters the spike followed a rebound in Covid-19 cases in other countries, which has slowed turnover at some major foreign ports to around 7-8 days.

The surging container rates have fed through to higher charter rates for container vessels, which has forced shipping firms to prioritize service on the most lucrative routes.

“Ships can only be profitably operated in the trades where freight rates are higher, and that is why capacity is shifting mostly to the U.S.,” said Tan Hua Joo, executive consultant at research consultancy Alphaliner.

Some shippers have reduced volumes in less profitable routes, such as the transatlantic and intra-Asia, said Damas.

“This means that rates on the latter are now increasing fast.”

No respite

The rate surge is the latest reflection of disruptions since Covid-19 slammed the brakes on the global economy in early 2020 and triggered huge changes to the flows of goods and healthcare equipment around the world.

“Every time you think you’ve come to an equilibrium, something happens that allows shipping lines to increase the price,” said Jason Chiang, Director at Ocean Shipping Consultants, noting the Suez canal blockage in March had played a major role in allowing firms to hike rates.

“There are new orders for shipping capacity, equal to almost 20% of existing capacity, but they will only come online in 2023, so we will not see any serious increase in supply for two years,” Chiang added.

Port Congestions in North America July-30-2021

Dear Customers,

We are seeing serious port congestions in north America ports, especially for LA/LB, which also affects the vessel schedules unstable recently. Carriers are also filing port congestion surcharges onto the shipment due to these circumstances.

Listed below is the most updated list by Steamship Line of the upcoming Port Congestion Surcharge (as of July 28, 2021).  The Port Congestion Surcharge is based on the discharge date of your shipments.  With all the delays and roll overs, it’s possible that the Port Congestion Surcharge would apply to your current bookings if the shipment arrives at the destination port on/after the effective date. We are following up closely with all carriers and will keep you posted on any updates. Please contact your CSR or operations person, should you have any further questions or concerns.

Carrier Items Quantum Effective Date Corridors Applicable to Remark
ZIM Port Congestion Surcharge (CNS) USD1000/Box 2021/8/1 All export cargo from Asia to Los All kinds of cargo and all equipment types These charges will be collected in US based on Asia gate in date.
USD5000/Box 2021/8/6 Angeles and Tacoma applicable to ZEX, ZX2 and ZX3 lines
USD1000/Box 2021/8/1 Other US  & Canada Port
Destination Delivery Charge (DDC) USD1000/Box 2021/8/1 Los Angeles and Tacoma
WHL Port Congestion Surcharge (PCS) USD100/20’
USD200/40’&40’HQ
2021/7/26 All (except US to HK & HK to US : base on 8/15 POL gate-in date) All kinds of cargo and all equipment types Payable at Hong Kong.
2021/8/15 HK to US
MSC Congestion Surcharge(CGS) USD 800/20′,
USD 1000/40DV,
USD 1125/40HC,
USD 1266/45’
2021/9/1 All China/SEA/S Kore/Japan exports to cargo to and via any US and Canada ports All kinds of cargo and all equipment types The effective date against Discharge Date in POD.
MATSON California Port Congestion Surcharge(PCS) USD 2000/20′
USD 2500/40DV
USD 2813/40HC
USD 3165/45’
USD 2000/R20′
USD 2500/R40′
2021/7/15-2021/8/4 Region for Long Beach,CA & Oakland,CA (Excluding Hawaii, Guam, Micronesia, Republic of Palau, Marshall Islands, CNMI) All kinds of cargo and all equipment types PCS will be collect only charges in the US.
USD 3600/20′
USD 4500/40DV
USD 5063/40HC
USD 5697/45’
USD 3600/R20′
USD 4500/R40′
2021/8/5
HPL On-carriage Congestion Surcharge (OCS) USD350/Ctnr. 2021/8/1 1. All import moves in the U.S. where HL is responsible for the truck and/or rail move;                             All kinds of cargo and all equipment types For all intermodal moves
2. All export moves in the U.S. where HL is responsible for the truck move;                                             Effective upon carrier receipt of cargo on or after August 1, 2021 and is valid until further notice
Pre-carriage Congestion Surcharge (PCS) 3. For Los Angeles (LAX)/ Long Beach (LGB), please note that the existing charge will remain as it is today with the amount increased to USD $350 per container.
Value Added Surcharge (VAD) USD 4000 for all 20′ container types 2021/8/15 Ex China to North America (USA and Canada) All kinds of cargo and all equipment types Need to be paid under collect basis at US and Canada destinations./ VAD count under gate-in date.
USD 5000 for all 40′ container types
CMA Port Congestion Surcharge(PCS) USD 800/20′
USD 1000/40′
USD 1100/40HC
USD 1266/45’
USD 1000/40’NOR
2021/8/7 All Asia (including Far East) Ports of Loading All kinds of cargo and all equipment types EXX svc only.
To: Los Angeles only PCS will not apply to shipment rates to/via Hawaii port of discharge.
The charges will be collected at the U.S. port
Port Congestion Surcharge(PCS) USD 2000/20′
USD 2500/40′
USD 2815/40HC
USD 3165/45’
2021/8/15 South East Asia, Nouth East Asia, Russia Far East, North China, Central China, Hong Kong & South China Ports of Loading All kinds of cargo and all equipment types Including EXX svc(Will charge both USD800/1000/1100/1266/1000 per 20’/40’/40’HC/45’/40’NOR & USD2000/2500/2815/3165 per 20’/40’/40’HC/45′ if under EXX svc).
To: U.S West Coast, U.S Eest Coast, U.S Golf Coast & Dutch Harbor Ports of Discharge. Based upon container arriving date at US.
The charges will be collected at the U.S. port

USPTI-Taiwan Announcement

Please be advised USPTI has officially received our Taiwan business license effective May 6,2021.
USPTI will officially open our USPTI Taiwan office on May 14.2021.

Our office address is:
USPTI Taiwan , Inc.
10F, NO, 289 SEC 4, Zhongxiao E. Rd.
Da An Dist. Taipei City 106450, Taiwan
T : ‪886-2-27789770
F : ‪886-2-27789780

Effective May 6 please contact USPTI Taiwan for all booking, space and customer service needs.
Our new office will serve as our I.T. Hub utilizing the CargoWise Network in Asia. Having this
new office will give USPTI opportunity to continue our growth in the NVOCC market with our carrier partners. I would like to personally invite you to attend this Grand opening as it will be of great value for you as we work to achieve our operating and strategic objectives of our businesses together.

Thank you for your business and we look forward to a continuing relationship of service. We are confident our new Taiwan office will assist in ensuring your international requirements are meet.

TPEB TRADE UPDATED 4-9-21

Dear Client,

 

We are facing a critical time in our industry that has not been experienced for years and it is making it very challenging in regards to the effect on all supply chains.

 

See the below information:

 

  • Equipment shortages in China are being experienced.  Carriers are doing all possible to replenish origins however the imbalance in trade is making this increasingly difficult and it is also very costly to send empties back to Asia.

 

  • Space is extremely short at this time from all China base ports.  The arbitrary origins ports are even worse due to the smaller feeder vessels so trucking from the feeder port to the mainline POL is required in many cases.

 

  • Rates are at an all-time high and continue to increase with premium rates being required in exchange for space.  Even with premium rates there is no guarantee of obtaining space on the requested vessels. 

 

  • The space situation is most critical at this writing to the USEC however the USWC is also problematic.

 

  • For cargo that is needed to the USEC and/or inland locations you may wish to consider discharge on the USWC and then  transloading into domestic trucks to move inland,  as needed,  to keep the cargo flowing.

 

  • We do not expect that this situation will improve in the short term and could last thru August based on all indications at this time.

 

In order to assist you with your imports it is critical that you confirm the bookings immediately when sent so we can work on gaining space as needed.  The space situation changes from day to day due to the overall volume of orders being requested so important to advise ASAP to assist us to gain the space on your behalf.

 

Thanks for your continue support and rest assured we are doing all possible to keep your cargo moving.

 

Sincerely,

EC Capacity/Market Update

Dear Valued Customer;

 

The Trans -Pacific import market remains extremely strong with cargo volume exceeding vessel and container supply.

 

Although West Coast demand continues to exceed supply, the East Coast demand far exceeds the East Coast supply.

Blank sailings, terminal congestions coupled with the continuing increased demand will create  unprecedented international transportation supply shortages to the East Coast.

 

Currently we anticipate blank sailings from Ningbo to the EC during the month of April. We anticipate sailings from other China ports will also be impacted. Our core carriers are advising that EC capacity is  fully booked thru August whereas West Coast capacity is currently booked thru June.

 

We are aggressively pursuing any and all options to minimize the impact to your supply chain, however we anticipate rates to continue to escalate with space becoming the critical issue during at minimum the next 2-3 months.

 

Please insure you are providing your forecast and booking requirement as early as possible to USPTI.

 

Please contact your USPTI representative for any specific details

ONE Line Apus Update Incident Update and Market Impact Dec 9, 2020

Dear Valued USPTI Customers

 

 

ONE Line Apus Update Incident Update and Market Impact

 

ONE Apus is now confirmed to be safely berthed in the Port of Kobe after losing 1,816 containers overboard when it encountered severe weather on Monday, November 30, 2020.

 

A full safety inspection of the vessel and its remaining cargo will now take place with the assistance of local emergency services to ensure that there is no threat to people or the environment posed by the dislodged and damaged containers that remain on deck.

 

Once the vessel and cargo are declared safe, surveyors from the various stakeholders will make their initial assessments whilst stowage planners and stevedores formulate and implement a plan to ensure the safe removal of the remaining units. Then, a thorough evaluation will be made on the exact number and type of containers that have been lost or damaged and damage to the vessel.

 

USPTI anticipates the unloading of containers and vessel assessment to take several weeks. We are still awaiting an actual list of potential USPTI cargo damaged or impacted and will keep you updated on the progress as provide you with additional information as it becomes available.

 

USPTI is still evaluating the  impact to an already space constrained market and anticipates the incident will reduce overall available space for the foreseeable future as demand continues to outpace available container supply. Likewise we anticipate the incident will further erode equipment availability.

 

We will provide additional updated as more info become available.

 

Thank you for your support and we look forward to a long term relationship of service.

 

Should you have any questions or concerns please contact your USPTI representative.

USPTI Market Update

September 2017

The Trans-Pacific import market remains volatile. As carriers continue to attempt to artificially adjust supply and demand rates remain at competitive levels. Carriers continue to file rates increase but have had limited success in implementing the increases in their entirety. The consolidation of carriers (mergers and acquisitions) noted below continue to impact both the quantity of space available and overall service (port of call, etc.)

  1. COSCO acquires OOCL
  2. COSCO and China Shipping merge
  3. APL is acquired by CMA/CGM
  4. Hapag Lloyd and United Arab Shipping merge
  5. Hanjin files for bankruptcy
  6. NYK, MOL and K Line announce new joint venture combining the three companies liner operations

USPTI opines that the strong/peak season will be short lived. We anticipate potential volumes to decrease from early October. To date space has been tight from certain origins (Shanghai for example) but still available creating the need for carriers to maintain relative low rate for peak season. We anticipate rates to stabilize for a few months in the $1300 to $1350 range to the west coast and $2300 to $2400 to east coast.

USPTI continue to actively negotiate with our core carriers to insure that we can provide our customers with quality reliable service at market driven rates.

Please contact your USPTI representative for update rate quotes and resolution of any supply chain issues.


July 20, 2017

Over the past several months the landscape of international ocean carriers has changed dramatically. Mergers, acquisitions and bankruptcy combined with ocean carrier alliances restructurings have been at the fore front of international trading news. Most recently COSCO announced the acquisition of OOCL. A brief summary of carrier activities is as follows:

  1. COSCO acquires OOCL
  2. COSCO and China Shipping merge
  3. APL is acquired by CMA/CGM
  4. Hapag Lloyd and United Arab Shipping merge
  5. Hanjin files for bankruptcy
  6. NYK, MOL and K Line announce new joint venture combining the three companies liner operations

Market share of top 4 carriers ( Maersk Line, CMA/CGM/APL, Med Shipping and COSCO/China Shipping after takeover of OOCL) is approximately 54% of global capacity. The container shipping industry has “officially” become an oligopoly.

The fight for market share is going to continue, there is still a significant amount of new vessel supply that is coming into the market over the next two years. Vigorous competition among carriers will continue with carriers protecting and attempting to increase market share at the expense of profit. Carriers continue to sell based on price and therein continues the problem of lower rates that are not sustainable.

Carriers continue to file monthly rate increase and peak season surcharges. To date carriers have had limited success in implementing increase but one can anticipate that as we move into the historical peak season cost will increase consistent with trading conditions. USPTI will continue to work with our carrier base to insure our clients quality and reliable service at market driven rates.

The carrier industry is historically a supply and demand business whereas rates rise when cargo is readily available and decline when trading conditions are poor. The jury is still out on future trading conditions. Globalization, protectionism, politics and general economic conditions are all impacting the perception and forecasted volume in the Trans-Pacific import market.

Logistic Partners Guidelines

A logistics company partner is often required in order to effectively run all aspects of a business within the transportation industry. However, logistics companies must be organized and consistently improving in order to meet client needs. USPTI proposes the top three ways in which to enhance operations:

1. Communicate well. Both internal and external communication is vital to running any successful company. All departments must work together to deliver optimal results for clients. Be sure to stay in touch with clients on a daily or weekly basis to let them know how things are going. This also provides opportunity for you to address any questions or concerns.

2. Comply with mandates. Always stay educated on what is going on regarding the various regulations and expectations for the transportation industry. These rules may present challenges for you or your clients, so you must beware of every aspect of these mandates in order to come up with a solution.

3. Encourage feedback. Your company’s success relies exclusively on whether or not your clients are happy with your work. Always ask for feedback on each assignment in order to assure you are on the right track and performing your services to perfection. Receiving feedback also an excellent way to ensure you are promoting a positive work environment for strong work ethics and output


April 2017

Even before last October’s announcement that the three Japanese shipping companies would merge their container operations, and the December announcement that Maersk would acquire Hamburg Sud, 2016 was already the most transformational year in the 60 years of container shipping. COSCO and China Shipping merged. CMA CGM acquired APL, Hapag-Lloyd agreed to acquire UASC and Hanjin collapsed. That led to a massive restructuring of global vessel-sharing alliances that will take effect in just weeks. Meanwhile, with ocean carriers still struggling with overcapacity that most analysts say will remain at least for the next two years, if not longer, shippers are facing a new environment with many unknowns.

Trans-Pacific spot rates were more than two-and-a-half times the level in June and they’ve held fairly firm as carriers increase scrapping levels and idle ships. Throw in the new Trump administration and its protectionist rhetoric that appears to be turning into policy, and the trans-Pacific is in the midst of a sea change. Given all these moving parts, what is the pricing and demand outlook for 2017? How will the new alliance rollouts impact service? And how will the new administration’s policies impact US importers and exporters?

The implementation of the new alliances will create disruptions to service as carrier reposition vessels to corresponded to new sailing schedules, port rotations and terminals. The phase in will be longer than normal due to the shear scope and number of carriers in each alliance.

The political impact to trading conditions cannot yet be determined although the current administration policies seem to favor protectionism over free trade.

Once again 2017 will be a challenging year and USPTI is prepared to assisting and resolving any issues impacting your import program.

Thank you for your support and USPTI looks forward to a long term relationship of service.

Feb News !

Despite an apparent recovery in the container shipping industry as seen in higher spot rates and shipping company share prices, there remain parallel, divergent narratives as to how strong the market truly is.

Several observers, analysts and carriers are convinced the market is recovering off an extremely weak 2016; trans-Pacific spot rates are up more than 50 percent since early December.

The massive industry consolidation initiated in 2016, which will eliminate seven of the top 20 carriers, has led many to believe that carriers will have a better shot at higher rates this year after a disastrous 2016 when contract and spot rates hit record lows and carriers collectively lost billions.

“The latest read on key indicators such as freight rates, ordering activity, idle capacity management, scrapping, and charter rates suggest stable to improving trends, which bode well for sector earnings,” JP Morgan wrote in a Feb. 2 research note.

“I do feel that in 2016 we found the bottom,” Dave Arsenault, the former US president and CEO of Hyundai Merchant Marine and now a consultant stated recently. “Last year, you had overcapacity and completely crazy pricing.

This year, you will still have overcapacity, but pricing will be more realistic,” states Philip Damas, director of Drewry Supply Chain Advisors. He said that in trans-Pacific annual tenders with which Drewry is assisting beneficial cargo owners, “we’re seeing rate increases of 40 percent.

“If you were a BCO last year you were a hero because you secured huge reductions in your freight. This year it is going to be a lot harder to be a hero in your organization as a BCO,” Damas said.

But others remain skeptical, citing multiple mega-ship deliveries yet to occur and at least two years of overcapacity still likely remaining in the market, despite much higher levels of scrapping last year and returns of unneeded chartered tonnage to owners.

So obviously with this there will surely be some optimism on the part of the carriers. But the days of destructive rate competition are not over. One view is we are still in the midst of a major battle within the container shipping market.

The relative calm that we are seeing right now was really the result of the Hanjin bonus, because the removal of Hanjin really helped the rest of the market,” he said.

The fight for market share is going to continue, there is still a significant amount of new vessel supply that is coming into the market over the next two years seen to continue for too long.

Vigorous competition among carriers could therefore still be seen in the trans-Pacific this year at rates that have adequate returns when there is an uncertainty about what it is that they are really going to be selling.

Carriers are forced to sell based on price and therein continues the problem of lower rates that are not sustainable which can ultimately lead to further consolidation. Please notify to your vendors to place booking as early as possible. Thanks !

The supply and demand in the Trans Pacific import market has shifted dramatically in favor of ocean carriers.

Due to the historical peak season combined with the capacity disruptions created by the financial problems and pending bankruptcy of Hanjin the demand for space to the west coast is currently above available capacity for all carriers servicing the west coast. The shortage of available capacity to the west coast is allowing carriers to charge premium prices for their services. The shortage of available capacity to the west coast will most likely continue thru the middle of October 2016 at the minimum.

Additionally one can anticipate the increased volume coupled with a shortage of chassis created by the inability of truckers to return Hanjin boxes to the terminals will potentially create additional delays at west coast ports of entry.

The situation to the east coast is somewhat better with capacity and demand much closer aligned.

USPTI continues to work closely with all our carriers to insure we can secure space and provide you with a quality reliable service. Our goal is to minimize any potential disruptions to your supply chain.
Please insure your transport requirements are communicated to USPTI as far in advance as possible. A minimum of 14 to 21 days prior to cut off at origin would be appreciated.
Thank you for your support and we look forward to a long term relationship of service.
Please contact your USPTI representative with any questions or concerns.