Update on Asia Capacity Issues
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As an update on the current situation with congestion and increased pricing out of Asian Ports, Griffin Global Logistics and our partners worldwide are seeing conditions in the current import trade market continuing to be difficult. There are shocking similarities between current problems and those we all experienced in August of 2002, when we moved out of the last recession...
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Similarities between August 2002 and Current

-Volumes have picked up dramatically. 
-Ocean carriers are unable to provide capacity.
-Carriers are rolling upwards of 300 containers per vessel. 
-All-water East Coast space is extremely limited.
-China and Asian origin ports have critical space issues. Whereas 2002 showed us that space was most critical in Hong Kong, Yantian and Shanghai; today's situation is reflected in all Asia based ports.
-Carriers are extremely selective in accepting bookings to interior points. These moves compound the ocean carriers' equipment shortages at origin (thousands of containers are under load and sitting as they await space). This is a major issue and it appears it will drag on for some time. 
-2002 issues actually led to a second General Rate Increase (GRI).
 
So far this year, we have worked through the Emergency Revenue Charge (ERC) and initial GRI. Next up is the Peak Season Surcharge (PSS) which was originally filed by the lines for implementation on August 1, 2010. However, carriers have decided to push this as far forward as June 1, 2010. Containers loading after this date will be subject to the following PSS:  
-Asia origin cargo: $320 (20')/$400 (40')/$450 (45')/$505 (45' HQ)
-India Sub-continent: $360 (20')/$450 (40')/$506 (45')/$570 (45' HQ)
Unfortunately, we do expect the ocean lines to stand with these increases, with no mitigation until space finally begins to loosen.
 
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Some Encouraging Signs
 
At last the lines have announced a few new services that will add some additional space.  However, with imports moving over West Coast ports up by as much as 70% as compared to April of last year, it appears that space will still be tight. Some new services announced recently, with which we have contracts in place are:  
 
Hyundai from Kao-Xmn-Hkg-Yan-Bus-Lgb to Oak
-5 vessels, 4060 TEUs each, weekly with 1st sailing 5-24
New World Alliance from Sha-Bus-Lgb to Oak
-5 vessels, 4500 TEUs each, weekly with 1st sailing 5-26
 
Space protection and service is our primary focus, with price increase mitigation being a close second. We are working toward our ultimate goal of efficiently moving all containers for all clients.
 
In advance, we ask for your understanding of this difficult situation. During times like this, our relationships with steamship carriers and our worldwide partners are critical. We've got a great management team in place in Asia that handles our carrier negotiations. We are confident that we can move you through this season without critical problems. Please Contact Us with any questions you have on the current situation. You can speak with our International Team at 800.361.5028 ext 2, or our Sales Team at 800.361.5028 ext 5. We pledge to continue to provide you with the best pricing possible while ensuring that your ocean freight moves to its destination.
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Our continued success lies in our commitment to a culture strong in customer care and Personal Service. We thrive in building customized, information-based  Tailored Solutions for your business needs. Our Global Reach ensures that wherever your goods need to go - Griffin can deliver.

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