November 2021 Ocean Freight Update
By NNR USA In Uncategorised On 4th November 2021
Global container shipping continues to be unpredictable!
The U.S. government and the state of California are pressuring stakeholders to work together to reduce severe congestion at the major port of Los Angeles and Long Beach. Some new motivators include a push for 24/7 operations at the ports, offpeak time pickups, and surcharges on slow-moving containers.
Global Schedule Reliability is still at its lowest ever, as we have seen it at 34% in September due to the long dwelling of ships outside major ports in the USA and Europe.
- Southern California Ports began imposing a surcharge on ocean carriers for import containers that dwell on marine terminals. Carriers will pass on these charges to cargo owners.
- Savannah port is also charging fees to relocate containers outside the port to nearby container yards to make cargo available as quickly as possible.
- Ocean rates have come down slightly, but carriers are already filing for General Rate Increases (GRIs) and Peak Season Surcharges (PSS) in anticipation of rate reductions in upcoming months.
- Bunker surcharge, a.k.a. fuel surcharge, is also going up due to the increase of the oil cost in the international market.
Tip-of-the-Month
Please continue to book early and utilize alternative ports that are less congested to get your cargo shipped on time to meet your delivery schedules.