**Transpacific Eastbound Routes Experience Record Volumes**
Volumes on Transpacific Eastbound (TPEB) routes remain robust, surpassing last year’s figures. Despite the strong demand, structural blank sailings due to Cape of Good Hope (COGH) routings and port congestion in Asia and North America are causing significant disruptions. These disruptions further straining American supply chains and bettering the case for more advanced visibility software for the industry.
Current data indicates that spot rates for container shipments from Asia to North America have surged. Coming to the end of June, rates have reached record highs, with prices for a 40-foot-equivalent unit (FEU) rising by £600 to £700 depending on the destination. The ongoing strong demand, coupled with limited supply, has prompted carriers to implement general rate increases (GRIs) and Peak Season Surcharges (PSS), with further hikes expected in the coming months.
**Far East Westbound Routes Struggle with Equipment Shortages**
Far East Westbound (FEWB) routes are facing severe equipment shortages at major loading ports in Asia. Liners are repositioning empty containers to alleviate the situation, but delays due to COGH rerouting continue to impact the return of empty containers. The shortage has led to rate increases of £1,500-£2,000 per 40-foot container in the second half of June 2024, with further rises expected to come in the latter half of the year.
Port congestion in Asia is exacerbated by high yard utilisation, adverse weather, and vessel bunching, resulting in low terminal operation efficiency and long waiting times. Carriers have been frequently omitting ports to maintain transit times, and demand remains high, leading to additional PSS charges.
**Transatlantic Westbound Routes See Stable Demand**
In North Europe, Transatlantic Westbound (TAWB) routes are experiencing stable demand, with rates holding steady. However, equipment issues persist in Southern and Eastern Germany and the Hinterlands, while the Western Mediterranean faces congestion and equipment problems at key ports. Carriers plan to implement GRI/PSS from July in response to sustained demand. Booking 2 to 3 weeks in advance is recommended to ensure smooth operations.
**Export Routes Face Extended Transit Times and Congestion**
U.S. exporters are experiencing extended transit times due to routing around the Cape of Good Hope and increasing congestion at key ports. This has worsened the container equipment situation, especially at inland rail points. Key transshipment hubs for U.S. exports, including ports in Asia and the Strait of Gibraltar, are also facing congestion. Booking 3-4 weeks in advance for coastal port loading and 4+ weeks for inland rail point loading is advised to mitigate delays.
**The Need for Visibility Supply Chain Software**
To navigate these challenges, implementing visibility supply chain software is essential. Real-time data insights provided by such software assist Beneficial Cargo Owners (BCOs) and Freight Forwarders in making critical business decisions to counteract impacts on their supply chains. This technology enables stakeholders to anticipate delays, optimise routing, and adjust to changing conditions effectively, ensuring smoother operations and greater adaptability in a dynamic market environment.
By leveraging real-time data, BCOs and Freight Forwarders can better manage disruptions, maintain supply chain efficiency, and mitigate the effects of port congestion and equipment shortages. This comprehensive approach is crucial for maintaining the reliability and resilience of global shipping routes amid ongoing challenges.