News

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.

TPEB TRADE OUTLOOK JULY-30-2021

Dear customers,

 

We continue to see a very strong Trans-Pacific eastbound market situation since the first quarter of 2021 to now. Space and equipment continue to be scarce. We’ve summarized some of the current TPEB market updates as below for you.

 

  • US port congestion is still a problem, especially in LA/LB.

 

Because of the strong consumer demand in the states since the COVID-19 situation is getting better and consumer product needs are strong. The import volume dramatically goes up during this peak season for all the importers to have their goods ready for the strong sales. However, the US ports just can’t digest this volume which causes serious congestion, especially Los Angeles and Long Beach port, which covers over 50% of the total TPEB volume. As you might also knew, BNSF also stopped their service to Chicago for weeks in order to digest the backlog at terminals.

 

  • Vessel schedules are affected/delayed or even blanking sailings in late July and August.

 

Owing to this port congestion, all the vessels are lined up and waiting outside of the ports for berth, which seriously affected the schedule. We are seeing the schedule has been unstable, delayed or even cancelled since the ship can’t make it back to Asia in time.

It also makes the equipment shortage in Asia, as the empties on the TP westbound voyage are not able to arrive in time to fulfill the strong demand for TPEB volume.

 

  • Ocean freight keeps increasing and Port Congestion Charge are implemented.

 

Overall, strong demand and supply shortage urges the ocean freight keep increasing and we expect this momentum will continue through September or even after October as the holiday season goods are coming to the market now.

 

We are pursuing all options to minimize the impact to your supply chain.  In order to assist you with your imports, it is crucial you confirm the bookings immediately when sent, so we can work on locking space/equipment as needed for you.   Should you have any question, please contact your CSR or operations PIC.

 

Thank you for your continue support and we are doing all we can do to keep your cargo moving as always.

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

Market Update Feb 24,2021

Dear Valued Client,

 

We continue to see a very strong market thru the first quarter of 2021 and beyond.  Space, and equipment continue to be scarce due to strong demand up to and immediately after Chinese New Year.

 

It appeared  that there will not be a slow season and the strong consumer demand will continue into the second quarter 2021.  We request that book early and provide forecasts and projections that will assist us to obtain the space and equipment required to service your import requirements.

 

Vessel schedules and service integrity, with all carriers, continues to be a challenge. Terminal and berthing availability continues to be problematic at both origin and destination ports.  Weather has also had some effect on vessels crossing the Pacific Ocean and is currently impacting intermodal rail operations.

 

Freight costs will remain high in view of the space concerns, critical shortages of equipment and overall consumer demand.

 

Please contact your USPTI representative for detailed information or any specific questions

 

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

Trans Pacific Market Update Dec 11, 2020

Dear Valued Client

 

The extremely strong  trading condition, with container volume exceeding available supply, is forecasted to remain strong through Chinese New Year.

 

Equipment shortage throughout Asia will continue to impact the ability to secure equipment necessary for booking.

 

Likewise we note many carriers are now focusing on “mother ports” and eliminating service from smaller/non-direct call ports. You may have to consider utilizing direct call ports to protect the integrity of your supply chain.

 

It is anticipated that ocean freight cost will continue to increase prior to and immediately after Chinese New Year. With the ongoing capacity issues numerous carriers are not in a position to accept any new business.

 

Thank you for your support.

 

Please contact your USPTI representative with any concerns