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.