Competitive Edge

August 25th, 2021

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Ocean Freight Market Update

Asia –> North America: 

Rates: Predicting Sept GRI
Space: Limited
Capacity: Limited/Under Capacity
TIPS: Depending on port congestion, consider trucking cargo to other nearby ports for quicker transit times. Transloading is also a good option to avoid longs delays with rail.

Shutdown Updates: 
Vietnam: New lockdown restrictions for the next 12 days: No one is allowed to leave home without a permit. 
South Vietnam : 10% factories fully operational 
North Vietnam: 60% factories fully operational 
Thailand: Lockdowns until end of August. 75% of factories fully operational (forced to close if covid outbreak)
Cambodia: Mostly open, 70% factories fully operational
Philippines: Manila lockdown until end of August. Factories status depend on each province. Recommend premium services

TIPS: If your shipments are impacted by these shutdowns, please reach out to our team. We would be happy to offer our insights and assist as best we can to keep your shipments moving. 


Freight News

Covid Shutdowns in Vietnam are Causing Retailers to Resort to Air Cargo Options

Massive manufacturing slowdowns in Vietnam are taking place and this is a concern to many companies since Vietnam is a huge reliant for winterwear. This is causing many apparel and footwear companies to panic and switch from ocean to air. While the cost may be higher, they need the product in retail stores before the holiday season.

According to Freightwaves and the Vietnam Textile and Apparel Association , nearly 90% of the industry’s supply chain has been significantly impacted by the partial lockdowns, with up to 80% of garment and textile companies in the southern provinces completely halting production. Some workers are even leaving for their hometowns due to concerns of the virus spreading.

While many companies are resorting to air freight options, air cargo is also experiencing Covid related issues. Less people are traveling leading to less takeoffs with cargo. Charter flights exist but are limited, causing even more competition. As you can assume because of all these factors, air freight rates are skyrocketing. Freightwaves  gives this pricing stat, renting an entire cargo jet from Vietnam to Chicago, for example, now costs at least $1.1 million to $1.2 million, compared to several hundred thousand dollars in more stable periods.

Shipping Delays/Updates Due to Tropical Storm Henri

The heads of the Port of New York & New Jersey warned vessel closures could happen due to weather conditions on Saturday. Heavy winds and record rain fall occurred last weekend. Port captains of New York & New Jersey warned of closures over the weekend if things became severe. On late Sunday operations were continued with caution after a water safety test.

In an article by The Maritime Executive , Capt. Marc Sennick emphasized how impressed he was with mariners’ preemptive manner to the weather situation. As everyone was patient with following safety protocols to ensure the right decision in whether to continue the normal schedules.

The situation in Rhode Island & Connecticut was a different story. They had to close all the ports in the region due to the stormy conditions, valid till the end of last Sunday. As the storm moves, we can expect disruption in the northern side of the east coast this week.

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