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 July 21, 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.

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Global Market Overview

Top story: Heavy congestion for rail cargo

With all eyes on the current International Longshore Warehouse Union (ILWU) West Coast negotiations and trepidation over a possible work slowdown, the Pacific Maritime Association (PMA) and ILWU maintain freight will continue to move without disruption.

Still, there is a significant disturbance materializing as a result of the market conditions—bottlenecks at ocean and inland rail terminals—for rail-bound cargo. We have seen this before, similar conditions prevailed at the end of 2020 and the start of 2021.

Cargo departing ocean terminals to move inland on the rail over the past month dwelled on average:

  • Oakland = 30 days
  • Los Angeles/Long Beach = 16 days
  • Seattle/Tacoma = 15 days 
  • Norfolk = 10 days 
  • Charleston = 7 days
  • New York/New Jersey = 5 days

Many of these locations have seen outliers though, with cargo sitting for prolonged periods before departure and containers oftentimes buried at the terminals. There are several driving forces behind the extended dwell times, including limited space at receiving warehouses, lack of chassis at the port for off-dock rail moves and at inland railyards, railcar shortages, and reduced yard space.

It is critical to understand how the transit time uncertainty for rail may impact the movement of your cargo. Alternative solutions should be addressed before shipment departure, especially if lead time flexibility does not allow for such risk. Once a container is buried at a terminal, it is difficult to action operationally.

Severe terminal congestion in Canada

Terminals in Canada have faced severe congestion in recent weeks. Equipment and labor shortages have compounded the backlog in Toronto, Montreal, and Halifax.

  • Rising temperatures and extreme heat may cause labor slowdown or stoppage
  • Limited truck drivers at inland rail ramps
  • Distribution centers and warehouses may reduce deliveries, creating bottlenecks in the rail network
  • Ocean carriers omitting voyages will result in a surge at the port
Line graph depicting rolling 8-day trend for average dwell time 

Increased travel demand affects airports, staffing remains scarce

With a spike in travel demand in North America and Europe during the summer months, the air freight market has been able to regain some capacity. As travel is a primary revenue stream for airlines, rates have witnessed a downward trend despite fuel increases. The increased passenger travel demand has, until now, had mostly positive implications for pricing and service levels.

With the increase in travel demand, staffing shortages will continue to plague both airlines and airports around the world for the next two or three months. The primary cargo handler in Frankfurt, Germany, Fraport, has indicated their preference is to dedicate available resources toward passenger flights instead of freighter aircraft. It remains unclear if they will continue to manage a limited number of freighter flights on weekends or take another course of action in the upcoming weeks.

Keep in mind, air demand has remained low relative to capacity. Cargo should continue to move smoothly.

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Air Freight Update

Asia

Overall, the market is expected to remain soft in July, with relatively stable rates and return of flights.

Europe

Capacity additions and slowing demand have softened market conditions. Rates are trending downward.

Summer holidays typically bring lower cargo demand. Cargo movement should be supported in July and August.

North America

Recovery times at United States airports remain elevated relative to pre-COVID-19 conditions. However, demand has softened since the start of the year.

South America

Challenges in the ocean market are driving significant conversion to air freight on northbound lanes. The market remains soft and spot pricing has increased considerably on all shipments over one ton. For urgent cargo, express service is the more reliable option. Forecasting is key to mitigate cost increases and transit delays.

South Asia

The market in India continues to remain tight, particularly for United States exports to Hyderabad, Bangalore, and Chennai, India.

Oceania

Imports from North America and Europe remain relatively strong. Flight adjustments or cancellations are still common. Asia imports are soft with greater capacity now available.

Air freight to North America and Europe from Australia is strong. The return of Qatar Airways in July to New Zealand added additional capacity in the market.

Fuel surcharges have had the biggest impact in recent months, prices have begun to taper off though.

North American Freight Market Insights | C.H. Robinson

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Ocean Freight Update

Global

Global container volume growth is currently estimated at about 3% for 2022, down from 7% in 2021. After a strong start to 2022 on most trades, global demand has shifted downward. High inventory levels built to cushion supply chain delays of the past two years and inflation are decreasing the appetite for imports. While exports from Europe, South America, and Oceania seem to have peaked, they continue to show sustained demand. Asia and Indian Subcontinent demand has slowed year over year, despite this time traditionally being peak season.

On the supply side, port congestion and container equipment fluidity continue to be crucial as they impact capacity and transit time.

Congestion remains a prominent issue in North America and Europe, where strike actions are upsetting productivity. It is important to understand average transit times and how market conditions may impact transit times in order to plan accordingly.

Average delay of late vessels

Graph depicting average delay of late vessels 

Source: © Sea—Intelligence Maritime Analysis

  • Average delays have improved month over month
  • Carriers will use blank/void sailings, port omissions, and service rearrangement to mediate congestion and optimize their network capacity and fluidity

Global schedule reliability

Bar chart depicting global schedule reliability 

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

Schedule reliability continues to show gradual improvement month over month. 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

Despite entering the traditional peak season period, export demand out of Asia has been tapering down due to high inventory levels and inflation in North America and Europe. Rates have been following the same trend, with some capacity being introduced.

Europe

Dockworkers in France will be negotiating the renewal of their labor agreements in September 2022. It is expected that these negotiations will be difficult and strike action by the union this fall is very likely.

Look for ongoing delays and congestion in Genoa, La Spezia, and Tuscany, Italy. Yard space is limited, and in-gate traffic is closely metered. With summer tourism, be aware of potential delays because of inbound cruise ships.

COVID-19 restrictions are in effect in Leixoes, Portugal. Coupled with yard construction, only one vessel can be received at a time.

Barcelona and Valencia, Spain are experiencing elevated congestion. A shortage of stevedores to process traffic will impact operations in the upcoming weeks.

Strikes continue in Hamburg and Bremerhaven, Germany. Until a resolution is reached, anticipate delays—delivery of cargo to the port via truck, slow traffic around ports.

North America

The International Longshore Warehouse Union (ILWU) contract expired July 1, 2022, and the dockworkers and ports have been unsuccessful in reaching a labor agreement.

What are the topics being negotiated?

  • Work disruptions
  • Employee benefits
  • Safety protocols
  • Technology and automation

What can you expect and how can you mitigate supply chain disruptions?

  • Re-route cargo away from trans-Pacific gateways
  • Longer vessel berthing time
  • Long-dwelling import containers will tie up capacity and empties
  • Consider ways to add increased shipment visibility and monitor freight movement

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 U.S. East Coast (USEC) ports: 10-to-14-day delay
  • Exports from U.S. West Coast (USWC) ports: 10-to-14-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

Rails are also backlogged causing additional schedule uncertainty. These delays should be added to the overall expected transit time to ensure proper planning to meet required delivery schedules.

South America

Services to East Coast South America have been impacted by congestion and COVID-19 implications. However, space has remained open to the East Coast whereas carriers have suspended some of their service offerings to the West Coast.

Exports from South America have strong demand. Adverse weather conditions, inadequate port/terminal infrastructure, equipment shortages, and port omissions are keeping the market relatively tight to most destinations.

South Asia

Export demand out of India Subcontinent is decelerating with improved space availability.

Schedule reliability and congestion is still a prominent issue, which affects transit times and capacity on some trades, such as to United States Pacific Northwest. Transshipment services also face risk of delays from congestion.

Oceania

The Southeast Asia market continues to be stable, although it has softened some in July. Demand is expected to continue a steady trajectory. Capacity is opening. Pre-planning is still essential, and it is recommended to book four weeks, or more, in advance to avoid interruptions. Equipment availability remains tight, particularly for 40’ High Cube (HC) containers.

The Northeast Asia market has softened. Both added capacity and new services have had a negative impact on rates. Expect this trade to remain challenged into the second half of 2022. Repositioning of equipment has alleviated some of the difficulties in prior weeks.

Trans-Tasman market remains strong with limited capacity, the addition of the new shuttle service out of Brisbane, Australia will add tonnage to the trade. Carriers continue to replace smaller vessels with larger ships.

North Europe, Mediterranean, Oceania (NEMO) services are experiencing heavy vessel delays. The weekly change of rotations will continue through the end of the quarter. Expect the strong market to endure, along with the elevated rate levels on direct services.

Advanced bookings are still required 5–6 weeks out for the United States. Equipment availability in the main ports has improved. Decreased Asia import volumes will continue to impact equipment availability.

The demand in the trade is steady. However, we have seen a shift in export volumes which may assist in easing of congestion at rail and port terminals.

Inland Drayage Update

Asia

Trucking in and out of Shanghai has gradually recovered with the improvement of COVID-19 conditions. The changes in local policies brought about by the pandemic has been affecting the trucking lead time in some areas, especially in east China, while the rapidly rising fuel price factors into the overall trucking costs.

Congestion has eased at the border in Dongxing, China and transit time of cross-border trucking from Southeast Asia is returning to normal levels.

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

Bar chart depicting drayage capacity and chassis lead times

Norfolk Southern Rail (NS) has reduced rail service from Atlanta, Georgia; Cleveland, Cincinnati and Columbus, Ohio; Detroit, Michigan; Louisville, Kentucky; and Elizabeth, New Jersey ramps to USWC ports effective June 27, 2022. Train frequency has been reduced to two or three departures per week. This is expected to cause an increase in rail terminal congestion.

Summer in the southern United States will create additional challenges for the movement of freight. Hot asphalt and treacherous heat make it crucial for drivers to take intermittent breaks for tires to cool. Carriers may be less likely to accept overweight cargo and delays in areas like Savannah, Georgia; Charleston, South Carolina; and Florida.

Prolonged delays at West Coast ports in the United States and Canada for containers destined to the Midwest are dwelling 10–15 days, depending on the port. A shortage of chassis at the rail yards to allow trains to be unloaded in the Midwest is consequently creating a shortage of railcars at the ports. Ocean carriers may reduce the volume of rail activity inbound into the Midwest as a result.

How will this impact you?

Anticipate a reduction of railcars to support outbound activity from the Midwest. Empty container equipment at ramps is also unlikely to meet export demand.

The National Labor Agreement for railway workers in the United States has been under negotiation since November 2019. Mediation efforts have been suspended in June 2022 because of lack of significant progress. Strike action could follow the cooling-off period which ends on September 15, 2022.

Oceania

Continued severe weather conditions and flooding in Queensland, Australia, serviced by the Brisbane port, is causing delays to road and rail services in the region.

Fuel pricing continues to be volatile across the region. Expect the high fuel levies to persist, as well as increased costs from:

  • Labor shortages
  • COVID-19 implications

Look for increased costs for full container cargo in both Victoria and Queensland, Australia.

Empty container parks continue to struggle with capacity. With limited options to return containers, wharf carriers are forced to stage containers within their own operations. Carriers must wait for opportunities to return containers to shipping-line nominated depots. Expect additional detention, transport, and handling costs to be incurred.

Australia is reporting an increase in both COVID-19 and seasonal flu cases. Service disruptions and delays to deliveries are expected to continue through the winter months.

Customs Update

Asia

National Health Commission of China alters prevention protocols on imported goods

China’s health authority announced testing no longer needs to be conducted for the COVID-19 on some imported goods, specifically non-cold chain items of low-risk level.

Items of low-risk level include:

  • Imported non-cold chain goods from countries with low risk of COVID-19
  • Items such as coal, ore, chemical or raw materials, grain, and feed products
  • Goods in transit on airplanes, ocean vessels, trains, or cars that are 24 hours, or more, from port of departure
  • Articles that are not in contact with stevedores during loading and unloading
  • Products that have been subject to preventive disinfection

North America

Potential for the Biden Administration to lift narrow set of Section 301 China tariffs

There have been active discussions around lifting Section 301 China tariffs on a narrow set of products in hopes of combating historically high inflation rates. Products under consideration appear to be limited in scope—mostly consumer goods products. Though no timeline regarding a final decision has been made, it is expected that President Biden will make a decision this month.

Oceania

Establishment of Department of Agriculture, Fisheries, and Forestry

The Australian Department of Water, Agriculture, and the Environment (DAWE) has now become the Department of Agriculture, Fisheries, and Forestry (DAFF) effective July 1, 2022.

Visit the DAFF website for details on the responsibilities of the department.

Newest developments from DAFF:

  • On July 7, 2022, DAFF commenced a pest risk analysis on the Khapra beetle. The Department plans to implement a series of urgent actions that will impact plant products and shipping containers. Expect the actions to be executed in phases to safeguard Australia from the major threat it poses to the grain industry.
  • To manage biosecurity threats, DAFF has launched new biosecurity training. The initiative will support the 2030 goals that have been set by the department to protect the Australian people, environment, and economy.

Australian Border Force sets new timeframe for the disposal of unclaimed imported goods

As of July 1, 2022, the Australian Border Force (ABF) has now implemented a shorter holding period for the disposal of imported goods, which have not been claimed by importers. The new timeframe is now two calendar months from the second working day of the receipt of imported goods. More details can be found on the ABF website.

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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

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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.

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