Export/Import Updates!
January 27, 2022

Trade Update - January 25, 2022


Steady shipping rates between Northern Asia and North America

  • According to S&P Global Platts, all-inclusive container shipping rates remained steady from the geography of northern Asia to North America in the week of January 21 which is in the vicinity of the Chinese New Year.
  • The rates remained steady in the light of some cancelled sailings and also aimed at balancing a pocket of weak demand around the Chinese lunar New Year holiday in February, which led to a short supply of carrying capacity.
  • Incidentally, some Chinese forwarders offered discounted rates as they were eager to fill space in the run-up to the Chinese New Year holiday starting on February 1. However, buyers must need to accept greater uncertainty with lower prices.
  • China to West Coast of North America shipments are priced in the range of $16,000 to $20,000 per FEU or 40-foot equivalent unit which also includes premium service fees.
  • China to East Coast of North America shipments rates are in the range of $17,000 to $21,000 per FEU.
  • Though some forwarders were giving discounts up to $12,000 per FEU to the West Coast, cargo bookings at these levels may have to wait for longer periods at destination ports to unload and may even be rolled indefinitely at loading ports via multiple sailings among other reasons.
  • Due to rising Coronavirus cases and increasing supply chain disruptions, premium rates ros between Southeast Asia to the East Coast of North America route while rates to the West Coast of North America were unchanged this week
  • All-inclusive prices from Southeast Asia to the East Coast of North America were in the range of $18,000 to $20,000 per FEU. These were a little higher than the upper limit of $19,000 per FEU rate recorded a week ago.
  • Container shipping rates for the shorter route between Southeast Asia to the West Coast of North America remained steady between $15,000 and $18,000 per FEU.
  • Though demand may seem weak for short-term bookings due to Chinese New Year, overall demand is stronger, driven by electronics and pharmaceutical sectors, observed a Vietnamese freight forwarder. He said customers are planning better, avoiding frequent booking upgrades. However, the forwarder said delays and disruptions continue to affect the market as most vessels are running late, including some instances of import cargoes to India being in transit for 2 – 3 months. Also, in some cases, cargo from China took more than three months to arrive.

Coronavirus continues to be a threat

  • Because of Coronavirus, average transit time has nearly doubled for most sailings out of China and it may take time to ease even after the lunar new year.
  • Due to these reasons, trucking operations were hit, including air cargo operations at some ports getting affected. Coronavirus continues to threaten disruptions in ocean services due to rising infections at ports.

Shipping rate hikes expected between Asia - Europe

  • Shipping lines are expected to hike rates from Asia to Europe. General rate increase is expected to be around $500 per FEU by major shipping companies for Asia to Europe trade lanes, including further hikes by the middle of the month.

Pricey intra-Asia shipping rates contributing to inflation

  • Higher intra-Asia shipping rates are contributing to manufacturing cost inflation. According to supply chain visibility firm Xeneta, spot rates rose from major Chinese hubs to Japan and South Korea.
  • Spot rates in these routes averaged $640 per FEU in 2020, $1,400 in 2021 and $1,800 in the early part of January 2022.
  • A good amount of intermediate goods criss-cross this region between factories and rising freight rates will add to the cost of manufacturing.
  • In the past three months, long term rates from China to Japan and South Korea also rose to an average of $2,150 per FEU, more than double compared to $1,000 per FEU rate from Japan and South Korea to China.

Rates from Japan & South Korea to China decline

  • Rates from Japan and South Korea to China declined to an average of $800 per FEU from an average of around $1,700 in January 2021.

Shipping costs rise between smaller Chinese ports to Japan & South Korea

  • Xeneta observed that cost premium rose for shipping goods from smaller Chinese ports to Japan and South Korea. Premiums were $100 per FEU in 2020 and $500 per FEU in the first weeks of January. Congestion at Shenzhen
  • Container stacks are rising at China’s Shenzhen port as congestion in Europe and the US is affecting all the way back in Asia, leading to delays in ships picking up goods from China, a technology and manufacturing powerhouse.
  • Ships arriving at Yantian terminal in China are delayed by a week on average, even as ships arriving from the US and Europe dropped by almost 40 per cent in the past fortnight.


Extra terminal charges deferred

  • Container dwell fee aimed at unclogging congestion at Southern Californian ports of Los Angeles and Long Beach has been deferred to April 29.
  • Dwell fee is a $100 surcharge levied on containers still stuck at a terminal after nine days for those moved by trucks and six days for those moved by rail.
  • The fear of $100 surcharge as dwell fee (extra charge) per select container, which was first proposed in October 2021 did contribute to clearing up some cargo.

American businesses lodge complaint on Hapag - Lloyd

  • Two small companies in the United States of America (USA) launched a complaint with the Federal Maritime Commission (FMC) over whose responsibility it is to pay the demurrage fees, whether the shipper or the carrier. Demurrage fee is the cost incurred for detaining a ship for loading, unloading or sailing beyond the allowed time.
  • Trucking company Orange Avenue Express Inc and One Banana lodged a complaint with the FMC on January 7th against German shipping giant Hapag –Lloyd.


Vast majority of supply chain professionals unprepared for Brexit customs rules

  • Zencargo, a logistics service provider noted that less than 8 percent of supply chain professionals are prepared for 2022 Brexit customs rules changes.
  • The 2022 regulatory changes kicked in from January which pertains to declarations, laws on the origins of goods compliance and VAT and customs valuation.
  • Zencargo CEO and co-founder Alex Hersham saidthat these changes came as companies were still adjusting to Brexit changes introduced in 2021.

Stellar earnings by Maersk, beats own expectations

  • In a year that saw the shipping industry rake in record profits f $150 billion, global shipping heavyweight Maersk raised its earning forecast three times and went on to outperform its own 2021 guidance.
  • In its Q4 report published in February 2021, Maersk raised EBITDA guidance from $8.5 billion to $10.5 billion, which was improved upon in each of its 2021 quarterly reports to finally end between $22billion to $23 billion.
  • On January 14, 2022, Maersk announced its preliminary unaudited Q4 results for 2021 which read an EBITDA of $24 billion compared to $8.3 billion in 2020.

CMA CGM moves to all digital spot pricing system

  • French shipping major CMA CGM recently moved to a fully digital spot pricing system called ‘SpotOn’.

European Commission dumps high profile merger proposal

  • Under the European merger regulations, the European Commission (EC) prohibited the acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) by Hyundai Heavy Industry Holdings (HHI).
  • According to EC, the merged entity would get a dominant position in LNG carrier construction and resulting in fewer large LNG carrier builders which could end up bringing costlier prices for the vessels.
  • This was EC’s tenth merger blockade in the past decade out of over 3,000 assessments.

MSC beats Maersk

  • Switzerland based shipping giant MSC surpassed Danish rival Maersk as the largest container carrier, according to data compiled by Alphaliner.
  • Mediterranean Shipping Company’s (MSC) fleet now has a carrying capacity of 42,84,728 standard 20-foot containers (TEU),1,888 containers greater than Maersk.
  • However, both the shipping giants have an equal market share of 17 percent each.
  • Maersk entered containerized trade in 1975 and sat on the top spot for decades together.

Middle East

  • In the first week of January, APM terminals Pipavav, an all-weather port located 152 nautical miles from Nhava Sheva, has secured a new weekly service that will connect Jebel Ali Port, Dubai to Nhava Sheva, Pipavav, Mundra Port and Sohar ports in India.
  • This new service is aimed at easing the supply chain network between the Gulf and India. The first vessel in this service arrived on January 5th at APM Terminals Pipavav.
  • The new service will cater to the needs of exporters and importers from the states of Delhi, Punjab, Gujarat and Rajasthan.
  • EXIM commodities that can be shipped through this service include white goods, brass items, rice, onions, potatoes, dehydrated foods, agricultural commodities, marble, crated stone, handicrafts, ceramic tiles, clay, bitumen, dates, waste paper and also scrap.


India – China trade rises to record levels

  • According to data shared by the Chinese General Administration of Customs (GAC), two-way trade between India and China rose to a record $125 billion in 2021. China’s exports to India were $97.5 billion, an increase of 46.2 percent while India exported $28.14 worth of goods, up by 34.2 percent.
  • Trade deficit between the two Asian giants is $69 billion in favour of China.

DBS Bank to offer credit solutions

 India calls on South Korea to waive non-tariff barriers

  • India asked South Korea to lift non-tariff barriers (NTB) such as mandatory local certification,bio-equivalence tests and other related export rules on the six items of rice, pharmaceuticals, engineering goods, steel, mangoes and textiles to improve market access and bridging the trade deficit.

Indian fruits imports at pre-2017 levels

Bangladesh –India trade rises by 94 percent

Sri Lanka hungry for Indian investments

No items found.
Editorial Team
Editorial Team
Customer success manager
Tea cup with steam illustration

Signup & get articles in your inbox

Signup to Cogoport. Get trade new & updates, and get assistance with booking international shipments online!

More articles

US surpasses China as India’s largest trade partner in FY 2021 - 22

US surpasses China as India’s largest trade partner in FY 2021 - 22

Around the time India inked the Indo-Pacific Economic Framework for Prosperity (IPEF) pact as a founding member with the US, the world’s largest economy surpassed China as India’s top trade partner for the fiscal year 2021 – 22. Keep reading to know more about how the trade synergies match between two prolific economies and the way IPEF dovetails into this framework.

Trade Update - March 7, 2022

Trade Update - March 7, 2022

February ended with PIL launching a new service connecting China and Australia, Hapag – Lloyd unveiling China Germany express service, MOL and partners setting a world record on autonomous navigation and Maersk launching an intermodal freight service linking the Far East to Europe. Closer home, India expects to see 80 percent exports to UAE to be duty free post FTA. Read on to know more.

Trade Update - February 8, 2022

Trade Update - February 8, 2022

The first week of February in the shipping world was eventful with features such as Maersk expanding footprint in Bangladesh, long term contracted ocean freight rates declining marginally, a slew of developments from CMA CGM, findings of schedule reliability dropping to a record low in December and Hapag – Lloyd registering $12.8 EBITDA among others.

Trade Update - February 1, 2022

Trade Update - February 1, 2022

The shipping and maritime industry has witnessed many heartening developments in the form of deployed vessels capacity remaining impressively high during the four-week period starting from the Chinese New Year, fleet anti-grounding alert software system innovation from a Japanese shipping line, OOCL doubling Q4, 2022 revenues, and French CMA CGM subsidiary Ceva Logistics finding a place in the world of high octane Formula 1 racing through the Italian prancing horse, Ferrari. Read weekly trade updates to know more.

Latest Freight News from China- 13th Jan, 2022

Latest Freight News from China- 13th Jan, 2022

Authorities in the port city of Tianjin have put up a tiered lockdown. The Port of Tianjin and the airport have suspended pickup operations for all import containers. Truck deliveries from Tianjin to Beijing are restricted. The airport in Xi’an remains closed. The movement of rail and road freight remains restricted. Freight transportation companies and shippers fear labor shortages due to COVID outbreaks. Trucking operations at the Port of Ningbo slowed. Read more on the latest updates from China

Union Budget 2022-2023: A focus on boosting logistics and supporting the MSME sector

Union Budget 2022-2023: A focus on boosting logistics and supporting the MSME sector

The 2022-2023 Union Budget introduces a slew of measures to further the vision of ‘Atma Nirbhar Bharat’ and pushes economic growth in the lead up to India’s 100 years of independence. Our Finance Minister emphasized the importance of the PM Gati Shakti National Master Plan in building multimodal connectivity and improving logistics efficiency. Read more.

Export/Import Updates!


Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Sara Smith
Customer success manager

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.


What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.


No items found.