Market Letters

Transpacific Westbound Market Update – Week 50, 2020

Market Conditions:     US exporters still face numerous challenges with shipping their goods on the Trans-Pacific trade as ocean carriers continue to expedite empty containers back to Asia over loaded export containers.   This action, taken in order to meet the surging US import demand, is causing export booking cancelations, a severe lack of equipment and limited vessel space for US exporters.

BNSF Rail Embargo:    The BNSF railroad has implemented an embargo on export containers to Los Angeles and Long Beach ports from the following origins: Kansas City, Chicago, St. Louis, Dallas and Memphis.    This is a developing situation and some rail ramps are now opening back up at certain terminals.    There has not been a formal announcement from the ocean carriers or the BNSF.   One of our ocean carrier partners advised the embargo is in place from 00:01 hr., Saturday, December 5th through 23:59 hr., Sunday, December 13th. This embargo is affecting the return of loaded and empty containers.   Please check with your trucker to confirm their ability to return containers to the BNSF prior to pulling empty equipment.    The UP Rail is unaffected by this embargo.    We will provide additional information as it becomes available.

Los Angeles / Long Beach Port Congestion:   Severe congestion continues at the ports of Los Angeles and Long Beach.   Latest reports show at least 25 vessels at berth and another 21 at anchor.  Below is a picture of the current situation in Los Angeles.

General Rate Increase:   Ocean carriers have been successful in securing increases for export cargo.    We expect the December 15th increase to be implemented as well.    Carriers are now announcing increases for January at $ 80 per 20’ and $ 100 per 40’ container.

Chinese New Year:     Chinese New Year celebration from Thursday February 11th to February 17th.

Temporary Suspension of Cargo to South China:  Many ocean carriers are suspending service to the below ports in South China during the 2021 Chinese New Year Holiday.   This suspension is for estimated arrival dates from January 5th through February, 26th 2021.

Dongguan           Guangzhou          Huangpu             Huizhou               Foshan                  Jiangmen               Sanshui                Shantou              Zhonghsan          Zhuhai                  Zhangjiang         Fujian                   Fuzhou                 Fuqing

Xiamen                 Quanzhou

For over 70 years, Laufer Group International Ltd. has been helping customers improve the way they handle their logistics. To see how we can help, or for any questions, contact Marc Van Gorp, National Export Business Development Manager, or contact your local sales representative.