Unitrans Worldwide Inc.

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Customer Advisory

Dear Valued Customer,

Peak season is underway and expected to place a further strain on global logistics. Unitrans Worldwide, Inc. continues to monitor conditions and work diligently with our ocean, air, and ground transportation partners to meet customer requirements. It is important that you provide your shipping forecasts to allocate our space properly. Booking lead times should be initiated 4-6 weeks in advance. To minimize the potential impact of warehouse shortages, vessel availability, longer truck and chassis turnaround, we can provide alternate services, including Air Freight, LCL Express, or Ocean/Rail/Air combination services. 

Below is an overview of the market situation across major shipping trade lanes. Don’t hesitate to contact your Unitrans Worldwide, Inc. for any questions you may have.

Sincerely,

Lindsay Barich, CEO
Unitrans Worldwide, inc.
WWW.UWINC.COM

ogistics Market Update SEPTEMBER 2021

GENERAL OVERVIEW

  • Chassis shortages in the Midwest and Southeastern region and trucking capacity constraints are causing delays on all cargo as both steamship lines, and rail carriers struggle with high import volumes. All carriers are emphasizing quick turnaround of containers. 
  • With the Covid Delta variant still spreading rampantly, the outlook of current high prices will continue through to 2022
  • With Peak Season upon us, all U.S. ports are seeing severe congestion with certain inland rail points leading to a tipping point. LAX/LGB ports are seeing over 37 ships awaiting berthing. Read more>>
  • With new COVID regulations, Chinese air-ground handlers are quitting leading to chaos. This is adding to the burden of ocean freight, where demand is already at an all-time high. Read more>>
  • Shanghai Airport had a shut down due to COVID related issue. We are expecting a strong surge in ocean volumes further impacted by this shutdown. Read more>>
  • Ningbo Port had a critical container terminal shut down due to COVID related issues, which has a ripple effect leading to at least 30 vessels awaiting berthing outside Ningbo Read more>>
  • According to some estimates, Europe is seeing a driver shortage of around 400,000 drivers. Poland, Germany, and the U.K. facing 
  • Hyunday (HMM) is in labor talks with its union for salary increase. Talks about imminent strike should the matter not be resolved by end of the month is on the table. Read more>>

TRANSPACIFIC EASTBOUND (TPEB)

  • Shanghai and Ningbo ports have been impacted by COVID cases discovered at the airport and Marine Ningbo Terminal.
  • Shipping Lines are releasing premium space on an ad-hoc basis and based on specific vessel/port pairs. With severe congestion, blank sailings are expected as vessel rotation becomes an issue. Premium rates only give the chance to get space; however, it does not guarantee a roll.
  • Rates are expected to increase as Peak Season, and stringent Covid restrictions throughout Asia are imposed. Some $5000 Premium fee levels are being applied on top of the general cargo rates.

TRANSPACIFIC WESTBOUND (TPEB)

  • Supply chain bottlenecks also stubbornly remain, with chassis availability becoming a top concern as ports/terminals are flooded with import equipment. Rail dwell is also significant as both carriers and rail providers continue to struggle with volume. This is evidenced by the UP’s move to temporarily suspend U.S. West Coast – Chicago hub service, a move that was supposed to alleviate some interior backlog. While local overburdened C.Y.’s may have benefitted, pushing the congestion problem back to the ocean terminals may have unintended consequences.
  • Quick turnaround of containers continues to be emphasized by all carriers.
  • Available vessel space has been tight off the U.S. West Coast while the East Coast has shown signs of improvement. Out of the Gulf, capacity has been more readily available.
  • Bookings should be initiated 4 -6 weeks in advance. 

TRANSATLANTIC EASTBOUND (TAEB)

  • With congestion and capacity constraints still present, carriers have continued omitting ports and/or revising rotations for schedule recovery.
  • While vessels awaiting berth at Oakland has declined, this is more due to carriers avoiding the port rather than systemic improvements.
  • Space has been tight off the U.S. West Coast, while off the East Coast, vessels are being more tightly managed; however, if granted enough lead time, space should able to be obtained.
  • Rates have been steady, and GRI activity relatively muted with Cosco’s small $50/container ex U.S. East Coast and Gulf to North Europe put into place on Aug 8th. 
  • Booking lead times should be initiated 4-6 weeks in advance.
  • Space constraints on the TAWB tradelane continue as equipment continues to be prioritized towards the long haul tradelane.

LATIN AMERICA SOUTHBOUND (LATAM)

  • Carrier utilization feedback continues to be mixed, with some carriers claiming to be full while others state they have space.
  • Space constraints are seen on the Northbound tradelane.