Global Freight Market Insights

Impact your business with timely information on global freight trends that could affect capacity availability, pricing, and more. Create and download custom reports by adding your preferred ocean and air trade lanes—then, check back monthly for updates.

 

Updated on May 19, 2022

The following information is built on market data from public sources and C.H. Robinson’s information advantage—based on our experience, data, and scale. Use these insights to stay informed, assist with decision making to potentially mitigate risk, and hopefully help avoid disruptions to your supply chain.

Customize and download this report

Explore all market insights

Global Market Overview

Top story: North American ports face congestion, uncertainty

As the West Coast ports in North America grapple with heavy congestion and difficulties in moving containers inland, more cargo moving to the United States East Coast (USEC) and Gulf ports has offered some relief. That strategy may be short lived, given congestion has spiked and put added pressure on an already strained inland infrastructure.

Shippers hoping to avoid the United States West Coast (USWC) with the upcoming International Longshoremen’s and Warehousemen’s Union contract negotiations, scheduled to start mid-May, have looked to diversify their supply chain and minimize prolonged delays. However, is combining a mix of bookings between the Pacific Northwest (PNW)/Pacific Southwest (PSW) and the East Coast an effective approach to try and minimalize interruptions?

How port volumes have shifted from May ’21–Nov ’21 versus Oct ’21–Mar ‘22

Chart showing how port volumes have shifted

Source: © Descartes Datamyne

As rail dwell times have continued to increase on the USWC, shippers should prepare for extended lead times or consider alternative routings. The USWC will no doubt continue to keep most of the volumes.

The current shift to the USEC has certainly resulted in tighter capacity and potentially higher inland costs for shippers. Keep in mind, inflation, COVID-19 restrictions, and port labor negotiations will all play a role in the months ahead, in addition to the upcoming hurricane season and an increase in severe weather events.

Get the latest market updates delivered to your inbox

Thank you for signing up for the global freight market updates from C.H. Robinson. Read our global privacy notice.

Air Freight Update

Global

Lockdowns in Shanghai are ongoing to control the spread of COVID-19. On Monday, May 16, 2022, Shanghai authorities outlined a three-stage roadmap to reopening, with normal production and life expected to return by the end of June. Beijing has also implemented restrictions to prevent rising transmission rates. The complications these measures in China will have on global supply chains will impact the next few months.

Air freight capacity YTD 2022 against 2019

Visual showing 9% decline in global air freight capacity

Source: © IATA

  • Passenger demand is increasing
  • Local travel restrictions will play a key role in capacity growth
  • China COVID-19 restrictions
  • Markets with stricter policies are unlikely to increase capacity

Asia

Lockdown measures in Shanghai persist to combat the rise of COVID-19 cases in recent weeks. Some companies supporting the production of automotive, semiconductor, and electronics goods have been approved to resume operations under a closed-loop management system—workers live at the production site and contact is limited to people with valid negative tests. However, production activities continue to be hindered by lack of materials, local travel restrictions, and labor availability.

Flight capacity is gradually recovering. Demand is expected to increase in May if the COVID-19 situation remains stable.

Road freight transportation declines 27.2% nationwide

Chart of declining vehicle freight flow index 

Imports to China will be challenged by flight cancellations in the weeks ahead. Other factors to consider:

  • Some ports may look to introduce penalties for airlines who do not clear import cargo from the tarmac within 48 hours
  • Penalties could influence airlines to cancel flights or substantially reduce inbound capacity

Companies looking for solutions to minimize disruptions because of the lockdowns, should look at their global supply chain and diversify their suppliers to be more resilient to potential COVID-19 surges and lockdowns in the future.

Europe

Capacity in Europe remains tight, even as new flights enter the market. While jet fuel pricing has remained high, demand is relatively steady. Challenges in ocean freight are resulting in high conversion to air freight, keeping rates and demand high.

Large shipments may require advanced bookings, at least 10 days prior, to secure capacity.

North America

Travel restrictions have diminished, allowing for additional capacity to enter the market in the form of passenger flights. While there are still challenges, and rates remain elevated, the additional capacity is welcomed. Not all markets have seen a rise in capacity, but most lanes are either stable or growing.

Airport operations in the United States are still confronted with the ongoing challenges of COVID-19. While recovery times at United States airports remain elevated relative to pre-COVID conditions, there are fewer extreme delays than in 2021.

South America

Challenges in the ocean market are driving significant conversion to air freight on northbound lanes. Spot pricing has increased considerably. For more urgent cargo, express service is the more reliable option. Forecasting is key to mitigate cost increases and transit delays.

South Asia

In Southeast Asia, demand continues to remain soft because of several holidays in the region.

However, the market in India remains tight. Available outbound capacity has increased, although rates remain high.

Oceania

While the market remains congested, there are indicators that increased stability is on the horizon. Airlines report strong passenger demand to European and North American markets for the northern summer. However, flights are more passenger-focused and will provide little relief to cargo demand.

There is a softening on inbound rates for larger bookings, and demand for charter rotations has diminished. In general, there is greater availability of ocean freight options and less demand for conversion cargo.

Outbound cargo is still experiencing delays to North America. Trans-Tasman also continues to have limited options.

North American Freight Market Insights | C.H. Robinson

Market Insights Live! Webinar May 10

Join our experts to get a deep analysis of current supply and demand trends, ask your toughest market questions, and find out how market changes will impact your supply chain.

 

Watch on-demand

Ocean Freight Update

Global

Expect rates to rise in the next several months. There will be increases to the Bunker Adjustment Factor (BAF) charged by carriers to account for sharply rising fuel costs. We expect carriers to begin to make BAF adjustments monthly.

Average delay of late vessels

Chart showing average delay of late vessels

Source: © Sea—Intelligence Maritime Analysis

  • Average delays have improved month over month
  • Demand continues to increase, creating vessel bunching, berthing delays, and reduced yard capacity
  • Carriers use blank/void sailings to mediate congestion

Global schedule reliability

Bar chart showing global schedule reliability 

Source: © Sea—Intelligence Maritime Analysis, Global Liner Performance Report

Schedule reliability continues to slowly improve. Overall, schedules will continue to remain challenged because of port congestion.

Additional considerations to remember:

  • Forecast 6–8 weeks minimum
  • Prioritization
  • Variability in SKUs/parts
  • Smooth volumes week to week
  • Regular communication with C.H. Robinson

Asia

In China, COVID-19 lockdowns are having an impact on demand out of Central China and causing some congestion at the terminals. South China is experiencing a seasonal lull.

Space at Port of Shanghai is critical for temperature-controlled and hazardous cargo. Carriers are refusing new bookings and diverting containers already destined for Shanghai.

Exports to Europe continue to ease, while still being strong to the United States.

Europe

Growing port congestion in the region is a result of containers destined for Russia, Ukraine, and Belarus, now being terminated at transshipment points, and awaiting re-routing instructions from cargo owners. Schedule unreliability also contributes to backlog at European ports’ terminals.

West Mediterranean ports are particularly impacted by congestion, leading some terminals like Valencia, Spain and Genoa, Italy to meter container in-gate activity.

Exports from Europe to North America are peaking. Equipment availability remains an issue particularly at inland points. Vessels are full and roll-overs are common.

What other factors can be expected in the upcoming months:

  • Void sailings/port omissions because of port congestion, leading to extended transit times and increased booking lead times
  • Carriers introducing alternative services on Transatlantic trade to avoid some of the congestion and shifting capacity
  • Softening in demand on Asia–Europe trade
  • Blank sailings increasing if COVID-19 lockdowns in China continue

North America

Port congestion is causing serious delays to ocean vessels sitting at anchor and waiting to berth. It is important to consider the estimated average delays in vessel schedules:

  • Exports from USEC ports: 10-to-14-day delay
  • Exports from USWC ports: 21-to-30-day delay
  • Exports from U.S. Gulf Coast (USGC) ports: 7-to-10-day delay
  • Transshipment ports (particularly in Asia): 15-to-30-day delay

These delays should be added to the overall expected transit time to ensure proper planning to meet required delivery schedules.

South America

Congestion at East Coast South America (ECSA) ports have reduced capacity by approximately 25%, but space is still relatively open because of northbound demand.

Space to West Coast ports is greatly reduced. However, some carriers have resumed services to Chile, Peru, and Colombia with limited space.

South Asia

Southeast Asia export demand remains strong.

The congestion at Bangladesh port has worsened, and some carriers have either suspended or limited their available space. A congestion surcharge is in effect.

Congestion at transshipment ports average 15–30 days in Busan, South Korea, Kaohsiung, Taiwan, and Singapore.

Demand from India to North America is strong. Space to USWC is obtainable as Transpacific demand, owing to COVID-19 lockdowns in China, has left some space for transshipment cargo.

Plan to book 4–5 weeks in advance to secure space and equipment.

Oceania

The Southeast Asia market continues to be strong, with demand growing. Expect this trade to remain strong in the months ahead.

The Northeast Asia market has softened over the course of the year. Both added capacity and new services have also had a negative impact on rates. We anticipate this trade will remain under pressure until at least May/June 2022.

The Trans-Tasman market continues to be strong with limited capacity. Carriers plan to replace smaller vessels with larger ships in the upcoming months.

North Europe, Mediterranean, Oceania (NEMO) services are experiencing heavy vessel delays. The weekly change of rotations will continue through the end of the second quarter.

Carriers have announced omissions to Auckland, New Zealand from USWC. To assist in easing congestion, look for:

  • Return of Seattle fortnight call
  • Weekly Oakland, California service
  • Intentions to drop Long Beach, California to fortnight rotation in June

Weekly service from USEC has been dependable, although vessel delays in Australia has caused both Melbourne and Sydney port omissions. As capacity shifts from USWC to USEC to sidestep the West Coast congestion and delays with Transpacific Eastbound (TPEB) trade lanes, we will see the USEC ports deteriorate over the next 4–6 weeks.

A new Excess Dwell Charge will be introduced at the Ports of Auckland (POAL), New Zealand. As of July 1, 2022, fees will be introduced in two stages to improve the flow of containers through POAL. The fees will:

  • Drive operational efficiency and reduce the number of import containers stored at the port
  • Be assessed in addition to any applicable demurrage
  • Apply to laden imports at the Fergusson Terminal and multi-cargo port
  • Target the longest dwelling containers first

Inland Drayage Update

Asia

The extended COVID-19 lockdowns in Shanghai have caused re-routing of cargo to nearby cities to become more difficult. A large portion of truck capacity is out of service and most warehouses in the city are closed.

Anticipate delays in cross border trucking between Hong Kong and Shenzhen, China.

Europe

Fuel prices have continued to swell in the last several weeks. Inland carriers have adjusted their rates or implemented a Fuel Emergency Surcharge (FES).

North America

Charts showing inland delays

Transloading cargo in the Northeast is an alternative solution for lanes more than 150 miles. Advanced planning is required because of limited warehouse space.

Congestion is still a factor in the New York/New Jersey area. Genset shortages have plagued the Northeast region. The influx of refrigerated cargo from Europe has caused surges in the area. Reefers will sit in the terminal past the Last Free Day (LFD) and accrue additional charges. Carriers are declining temperature-controlled freight as a result.

Norfolk Southern will convert Detroit, Michigan; Cleveland and Columbus, Ohio; and Jacksonville, Florida into Tier-1 terminals effective June 1, 2022, for international containers. This will reduce the free time from 48 hours down to 24 hours.

Limited hazardous and tri-axel availability in Cleveland and Columbus has continued.

Rail service from Atlanta ramps to the USEC is limited. Consider alternative solutions such as trucking cargo to Charleston, South Carolina, or Savannah, Georgia port. Capacity has increased for freight out of Savannah.

Terminals in Charleston have extended their gate hours once again to mitigate congestion. The extended hours do not apply to reefer cargo. Take advantage of these prolonged hours to help move containers off the port and open terminal capacity.

The contract for the labor union at Los Angeles/Long Beach port is due to expire June 30, 2022. The two parties will sit down to start negotiations on May 12, 2022. It is expected that the negotiations may extend beyond the contract expiry into July 2022.

Oakland is still congested due to the inconsistency of terminal appointments. Local capacity is limited, and chassis equipment has become difficult to procure.

Oceania

Fuel pricing continues to fluctuate across the region, resulting in carriers’ fuel levies remaining high. We anticipate further increases in the upcoming months.

Labor shortages are a significant hurdle—there are limited warehouse staff, forklift operators, and truck drivers in the market.

The projected vessel bunching in April, coupled with the Easter period, resulted in a huge backlog of empty containers in the network. There are still major delays on the return of empty containers along the East Coast. Expect increases in shipping line detention charges because of constrained resources within the container logistics system.

Customs Update

North America

Progress for the America COMPETES Act and U.S. Innovation and Competition Act (USICA)

On April 28, 2022, the Senate voted to go to conference with the House to reconcile the differences between the America COMPETES Act, passed by the House, and the U.S. Innovation and Competition Act, passed by the Senate. It has not yet been confirmed when they will go to conference.

USTR to review all Section 301 tranches

A statutory review has been initiated leading up to the four-year anniversary of the Section 301 China tariff actions, according to the recent announcement from a United States Trade Representative (USTR). As each of the four Section 301 tranches are set to expire after four years, unless reviewed or extended by the USTR, the web portal will open for any requestors seeking continuation. Interested parties are invited to submit comments on the USTR’s comment portal.

Oceania

Seasonal measures related to Brown marmorated stink bug concludes

The Department of Agriculture, Water, and the Environment (DAWE) have confirmed the official conclusion of the 2021-22 brown marmorated stink bug (BMSB) season. Goods shipped, or vessels which have departed, from BMSB identified risk countries on, or after, May 1, 2022, will no longer be subject to the seasonal measures. High-risk goods which were manufactured in, or shipped from, target risk countries between September 1, 2021, and April 30, 2022, are subject to the measures upon arrival in Australia, regardless of the vessel’s arrival date.

Government issues warning on outbreak of foot-and-mouth disease in Indonesia

DAWE have advised of an outbreak of foot-and-mouth disease (FMD) in Indonesia. They have been removed from the department’s FMD-free country list. Expect changes to import conditions for animal and dairy products from this country.

Australian Border Force completes Goods and Services Tax review

In 2021 the Australian Border Force (ABF) launched the Goods and Services Tax (GST) exemption misuse project. The findings determined wide-ranging misappropriation—importer misuse of the food exemption alone has resulted in $82.5 million in short-paid and deferred GST identified for recovery. The ABF has intervened with measures to audit these transactions.

U.S. Tariff Search Tool

Find potential savings

Customize and download this report

Trade lane updates

Use these insights to forecast how capacity changes and trends impact your business. Create customized, shareable reports by adding your preferred trade lanes. Check back each month for the latest updates in the lanes you care about. Updated ocean and air freight market insights will be available the third Thursday of each month.

Market status key:
Stable
Strained
Critical

Add a trade lane

Trade lane FAQs

Q: What are C.H. Robinson's definitions of ‘stable,’ ‘strained,’ and ‘critical’?

Stable: Green – Relatively open capacity and low spot market rates
Strained: Yellow – Capacity is tight and mid-level spot market rates
Critical: Red – Backlog of capacity and high spot market rates

Q: What do the terms and acronyms commonly used in market updates mean?

  • Blank sailings – Blank sailings occur when a carrier has removed a vessel rotation from a given service string. This results in one week where there is no vessel sailing offered at the ports called on that particular service string.

  • CY – Container Yard. A location where containers are stored temporarily during transit. It can be a port terminal, rail terminal, or trucker’s yard.

  • Extra loader – An extra loader is a vessel that an ocean carrier has added to a service string to increase capacity in the short term. This vessel would not be part of the standard vessel rotation on that service string. It would be removed as soon as it is no longer required to meet excess demand.

  • FEU – Forty Foot Equivalent Unit. The forty foot represents a 40′ container.

  • GRI – General Rate Increase. This is one of the mechanisms ocean carriers can use to increase rates for ocean transport on a particular trade.

  • IPI – Interior Point Intermodal. Also known as rail ramps, these are inland points to/from which carriers can offer service on a through bill of lading.

  • PSS – Peak Season Surcharge. This surcharge is typically applied by ocean carriers during the peak shipping period on a given trade lane, where vessel space is either fully utilized or overbooked.

  • Roll/roll pools – A “roll“ happens when a container booked on a given sailing/vessel is transferred by the steamship line to the following vessel serving the requested lane. A “roll pool” is created when a steamship line plans for a large number of containers to roll from one vessel to another.

  • SSL – Steamship line or ocean carrier

  • Steamship line alliance – Alliances occur when a group of steamship lines share vessel space on their service strings and manage services in agreement with each other. There are currently three steamship line alliances on the main east-west trades: the Ocean Alliance, 2M Alliance, and The Alliance.

  • TEU – Twenty Foot Equivalent Unit. The twenty foot represents a 20′ container.

  • Transshipment – This service offered transports cargo in two legs on two different vessels. The first vessel brings the container from the port of origin to the port of transshipment. The second vessel brings the container from the port of transshipment to the final destination port.

  • VSA – Vessel Sharing Agreement. This is an agreement between steamship lines to share slots (space) on a service string or vessel.

Market insight videos

Watch these short videos to gain a better understanding of the market dynamics affecting global supply chains and the movement of goods around the globe.

Wheeled v. grounded U.S. inland terminals

Explore the difference between wheeled and grounded U.S. inland terminals with Jenna Kuehn, Director of Global Forwarding Inland at C.H. Robinson.

The chassis shortage

Learn about the dynamics behind equipment shortages in the U.S. inland market with Jenna Kuehn, Director of Global Forwarding Inland at C.H. Robinson.

Air freight and Shanghai labor market

Learn how labor challenges in China are affecting air freight in Shanghai with Keith Nehring, Senior Air Product Development Manager.

Get a free global forwarding consultation

Discover how our deep expertise and seamless, multimodal set of global services can help you realize potential ocean and air savings.

Connect with an expert

Global forwarding news

Read the latest ocean and air shipping news directly from our experts.

How to Prepare for Global Logistics in 2022
Blog

How to Prepare for Global Logistics in 2022

December 15, 2021 | 11:57 AM EST
Read More
LCL: A Shipping Solution for Today’s Global Logistics Market
Blog

LCL: A Shipping Solution for Today’s Global Logistics Market

November 4, 2021 | 7:00 AM EST
Read More
Prepare for the 2021-2022 Brown Marmorated Stink Bug Season
Blog

Prepare for the 2021-2022 Brown Marmorated Stink Bug Season

September 9, 2021 | 2:19 PM EST
Read More
Explore more resources