Asia – market update

North Asia

  • No new developments of significance. The environment remains veru difficult. Equipment availability remain inconsistent with changes occurring almost on a daily basis. On this it takes only three or four 15,000 TEU vessels to call a port in a day to either deplete or replenish container reserves thus we expect the volatility to remain for some time. This does help explain why we cannot get bookings one day but can secure a booking next day.
  • The Yantian Port disruption continues to disrupt. More containers have now been effected by this event than the Suez Canal. Other South China ports are being impacted due to Port ommissions and/or vessel delays. Particularly Nansha, Hong Kong and Shekou.
  • Compared to the Suez Canal the Yantian event has not caught media’s attention. In 2020 Yantian Port handled 13.3 million TEU (35,000 20’s per day). It needs to be recognised that this is a significant port and this is a significant and very disruptive event.
  • The first charter vessel to N.Z ex China (Shanghai to Auckland) oferred by Matson Shipping has been fully booked. It has now been decided as a regular sailing until further notice. The next sailing is tentatively scheduled for 02 August. No Dangerous cargoes can be booked.

South East Asia

  • The massive “rolling pools” at transhipment ports (in particular Singapore and Port Klang) are not diminishing. ANL’s (shipline) move to cancel a number of bookings on the KIX service has had no discernible effect which signals that stop bookings may remain in place for future sailings. Nothing official as yet.
  • The situation in India has not improved. We are seeing orders reducing from India and being placed elsewhere as importers look to source elsewhere. India (in our view) is the second worst country in the world logistically (USA being the worst). India is experiencing a 40% increase in thru-put from key ports consequently infrastructure and services are suffering. Extra long lead times should be considered if importing from this region. In addition to delays, advisories of increases USD 500/20’and USD 1000/40’have started to be released from the shipping lines. These increases cover India, Pakistan and Sri Lanka
  • In general, for both South and North Asia more rate increases are being discussed with three official announcements being received thus far. It should be noted that the GRI’s (General Rates Increase) of USD 500/20’ AND USD 1000/40’ are being mooted.

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