Ocean rates between Asia and North America continue to decline with levels for all gateways nearing levels seen during the pre-pandemic period, according to the latest market update from Flexport.

The freight forwarder said in its November 22 report, that Transpacific Eastbound (TPEB) demand continues on a decline. 

Rates continue to fall for all gateways, nearing rate levels seen pre-pandemic although carrier reliability is up YoY.

“Overall TPEB capacity is continuing to grow, port and rail congestion is still seen at the major US gateways to some extent, most notably at Houston for vessel dwell (12 days) and Los Angeles/Long Beach as rail dwell (14 days),” Flexport said.

For Asia-Europe, it added that there is ongoing pressure on spot rates due to low demand.

“No change in the sluggish demand throughout November with a similar outlook going into early December,” the freight forwarder said, adding that rates are still following a “downward trend.”

“Space is readily available but schedule reliability is affected. Port congestion in Europe continues to cause delays and late return of vessels to Asia,” the report added.

Flexport said space is generally open despite the impact of blank sailings and vessel delays.

For Europe-North America, the freight forwarder said overall capacity hasn’t further increased in November but we would expect more vessels to be shifted to Transatlantic Westbound (TAWB) market in Q1 2023.

“Adjustments downward on Freight All-Kind (FAK) rates for December are expected due to less demand. So far most of the carriers have reduced their Peak Season Surcharge (PSS) amount,” Flexport added, noting that there are some openings to the U.S. East Coast (USEC) due to the additional capacity added in October and November. 

“Space into the U.S. West Coast (USWC) is available on select loops as congestion continues to improve,” the report added.

Air freight picking up but remains soft overall 

In terms of air freight, Flexport said for North China — which includes Shanghai — TPEB demand is picking up slightly due to an increase in month-end shipping orders. 

Far East Westbound (FEWB) demand and rates remain stable.

For South China — Shenzhen, Guangzhou, Dongguan, and Hong Kong —  Flexport said market rates remain at similar levels to last week. 

“The Covid outbreak in the Guangzhou area continues to affect manufacturing operations, resulting in cargo output delays,” it added.

For Taiwan, the freight forwarder said there is a slight peak before the Thanksgiving holiday, however, overall demand is low in the market. The same goes for Korea where the market remains soft for the Thanksgiving holiday.

For Southeast, Flexport said the overall export markets in Southeast Asia continue to be soft.

For Europe, overall demand levels out of Europe remain low for this time of the year.

“Capacity available in the market is sufficient to meet demand levels, with slightly higher lead days into some main hubs in North America,” Flexport said, although noting terminal congestion in Amsterdam (AMS) and London Heathrow (LHR) which might lead to delays.

The freight forwarder said the upcoming holiday season, nonetheless, might create bottlenecks both in the air and on the ground.

For the Americas, Flexport said export demand remains steady from all markets while US airports are running at a normal pace.

“Capacity is opening up further, especially into Europe,” Flexport said.