The Covid-19 pandemic seems to be slightly under control in many European countries at the moment, but in the rest of the world we are still facing enormous challenges that affect international logistics. The sector has been struggling with ever-increasing tariffs and ongoing delays and capacity problems for almost 2 years now. Unfortunately, the end is not yet in sight for this unprecedented crisis in international transport.
Although world trade is flourishing and the order books of most companies are full, we are facing enormous shortages of raw materials and semi-finished products, insufficient transport capacities and also an extremely tight labor market.
Unfortunately, this development means that it is currently virtually impossible to issue fixed rates with a certain validity. That is why we have decided not to issue any new rate sheets for the 4th quarter of 2021 either. The basic rates of the 1st and 2nd quarters of 2021 will continue to apply, and the fluctuations will be absorbed by surcharges in the form of a PSS, GRI or Corona surcharge.
Our customers ask for market insights, so we have tried to provide a reasonable overview of current market developments within our service package.
Ocean freight
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Import Asia
The rates for the import of full containers from China and South East Asia to Europe have now risen to around USD 16,000.00 per 40ft container. No further increases are currently expected for the next 4 to 6 weeks. We have already explained the reasons for this many times in previous letters and news bulletins. You will find more about information on our website www.intervracht.nl. As you have come to expect from us, we compensate for the rate fluctuations with our variable PSS surcharge.
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North America export FCL
In recent months we have seen a substantial increase in rates on the North Atlantic shipping lanes. Sea freight has in many cases more than doubled, sometimes even tripled. Unfortunately, further increases are expected in Q4. That is why we are currently unable to issue fixed rates for full containers to America, but we will provide you with a rate on request.
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North America export LCL
For the routes (via Canada) to Chicago, shipping companies have implemented significantly higher rates and surcharges in recent months. This also has a substantial effect on our ocean freight LCL rates to the US. We have incorporated these rate increases in our rates in a separate GRI surcharge.
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Other sailing areas
For the other sailing areas in which we are active, such as the Middle East, South America and Australia, we also see significant rate increases, here also rates will be provided on request.
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Capacity, transit times and Premium rate
There is a limited capacity for almost all sailing areas, and it is advisable to pass on your bookings in time and to take into account longer transit times than normal. On certain sailing areas the waiting time to board is sometimes several weeks. Only if the shipper is willing to pay a hefty Premium rate on top of the already higher rate are guarantees given by the shipping companies to get on board. You should think of surcharges of USD 1,500.00 to USD 2,500.00 per container for export to America.
Air freight
The rates for air freight shipments are still unprecedentedly high and unpredictable. Options and rates vary per week, sometimes even per day and we try to absorb the enormous fluctuations through variable surcharges. Not much will change about this situation in the fourth quarter of 2021.
For USA imports, a new “export screening fee” of USD 0.18 per kg was introduced in Q3, which we will have to pass on to all our customers as per outlay. Air cargo handling at most major US airports such as JFK or ORD continues to be chaotic.
Surcharges
As usual, we will pass on the additional charges for fuel (BAF, LSSC, FSC), currency risks (CAF) and security (SSC, ISPS) known to you. Where possible, we have combined surcharges to limit the number of quotation and invoicing lines. Fuel surcharges are currently on the rise again due to high oil prices. Surcharges as a result of the Corona crisis will be charged as per outlay for all trade lanes and traffic sorts.