Weekly Update Week 43: Oct 24th – 28th
Freight Rates Outlook: Many of you will have seen the headlines outlining significant drops in the global freight rates. For example, Transpacific West Coast spot rates have dropped to below the level of the 2015/2016 price war. So what is happening to rates in the rest of the world and more specifically the Europe to East Coast lane? Why haven’t prices dropped? Ultimately, this is a function of supply and demand, and demand from Europe continues to be high. The table below shows the change in Worldwide shipping rates as of Oct 20th 2022.
Source Drewery Spot Rates – Oct 20th 2022. These are ocean rates only and do not take account of pickup, drayage, fuel and warehouse costs.
Note the highlighted large rate-drop on the Shanghai to LA route, but the rolling year annual rise on the NY/Rotterdam line.
As carriers switch more ships to the European lanes, and demand eases, we are optimistic there may be rate drops in 2023.
FDA Webinar: Last week, we alerted you that the FDA Renewal 2022 Deadline was approaching. We held a Webinar on Wednesday, October 26th to talk through these changes. The Webinar was recorded and we will put the recording up on our website over the next few days and remind you where to find it in next week’s update. Thank you to all of those of you who attended the live Webinar and asked some great questions.
New York, October 26 – The Port of New York wait time remains the same with an average of 11 vessels at anchor. Average wait times are dropping, down to 3 days max at APM and PNCT, while others are functioning within normal timeframes. Inbounds continue to take between 3-4 weeks at most warehouses with Western up to 6 weeks. FDL maintains an average of 3-4 days to inbound product, cross-dock operations remain normal.
Oakland October 26 – Vessel wait time has dropped from 25 days to between 15 and 20. Capacity issues continue to force new vessel discharges into a minimum of 14-days on the container yard before release. Delays at Sidekick are creeping up again, extending the usual delivery time from the east coast from 11 days to 19.