MARKET BRIEF - 2022 WEEK 7
Spot freight rates weathered the post Chinese New Year period relatively well despite marginal falls on the SCFI spot rates last week due to weaker Australia and Latin America rates. Asia Europe rates also weakened slightly but Transpacific rates were mostly unchanged due to persistent port congestion that is holding up 11.6% of total capacity. Charter rates strengthened further with limited vessel availability pushing up asking rates.
Port congestion show no signs of receding, and have increased in the last week especially on the US East Coast and North Europe. Although vessel queues have receded in LA, overall US port congestion worsened as congestion shifted to other US gateways. Asian port congestion remains largely unchanged with only minor delays in China and Southeast Asia ports.
There is no let up in US port congestion despite the receding queue at the port of Los Angeles/Long Beach since the end of January. The diversion of transpacific capacity from Asia away from LA/LB to other US gateways since December has pushed up total vessel capacity waiting at the other US ports to over 1m teu with no improvements expected in the coming weeks as vessel departures from Asia continue apace even during the post Chinese New Year period.
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