January 2023 – Market Update
By NNR USA In Insight On 12th January 2023
Holiday Alert
The Chinese Lunar New Year holiday is around the corner running from Saturday, Jan 21 through Friday, Jan 27.
Deadlines to ship cargo to and from China before the holiday shutdown are quickly approaching.
Contact our team if you have an urgent shipment.
2023 is starting in better condition than last year. Pockets of congestion exist for air and ocean depending on origins and destinations. The major ports of LA/Long Beach are in much better shape, reporting no significant inbound vessel backlogs. Air capacity is improving.
Potential disruption lingers on the West Coast with the ILWU and PMA negotiations still not resolved.
Generally, ocean freight rates, vessel schedule reliability, and delays are improving consistently. However, we continue to see U.S. ocean export cargo rolling to the next vessel, especially on the West Coast. Meanwhile, ocean import cargo suffers tolerable delays. View our US Port and Rail Status Update Chart for more port details.
Even weather-related delays and closures, particularly in East Asia, have seldom risen above the "annoying nuisance" level. Meanwhile, holiday-related passenger traffic has frequently filled aircraft belly space with more passenger baggage than usual, "bumping" moderate amounts of cargo to subsequent flights.
Air cargo rates, including fuel surcharges, continue to fluctuate around the margins but without broad trends developing (either upward or downward) in most lanes. A few air carriers have launched (or re-launched) additional service lanes, but more is needed to significantly affect overall market capacity or rates.
Ukraine - Russia Update
With only one major "shooting war" continuing at the moment, the most significant geopolitical disruption to air cargo is still the closure of many Western countries to an overflight by Russian commercial aircraft, and vice versa. A few airlines, primarily Middle Eastern and Asian ones, have continued to operate services through Russian airspace.
Air Cargo: Detail by Origin
Most of our locations are reporting airport congestion as moderate, not yet back to pre-COVID conditions.
CHICAGO [ORD]
- Airport wait times are continually improving, allowing smoother cargo deliveries and pick-ups.
- Recently, a pro-union mandate threatened to disrupt cargo flights but was resolved between the City of Chicago and cargo handlers.
LOS ANGELES [LAX]
- Transit times to Europe and Asia are smooth, and space is generally available.
- Capacity to Mexico City and Guadalajara has opened up and is running smoothly.
- Capacity to Brazil has improved, but there may still be a 1 to 2-day delay in transit.
TIP OF THE MONTH
We still recommend booking as early as possible for air and ocean to ensure space availability. Potential delays do exist. Our team members can help you navigate the best schedule for your freight.
Find NNR Offices Near You
Contact our team for more forwarding solutions.