North America Freight Market Update Live

The below transcript has been generated by an AI system and may contain inaccuracies, errors, or omissions. While efforts have been made to ensure the accuracy of the content, the AI-generated transcript should not be considered fully reliable or definitive record.

Nathan Strang

Alright. Good morning, everyone. Good afternoon. Hope you all are having a great Thursday. My name is Nathan Strang. I am director of ocean freight here at Flexport, and welcome to this month's freight market update. We have a great webinar today. Lots of information to pass on, about the current market and and what's going on in the world. But first, let's go over a little bit of housekeeping. So to the right of the main screen, you're gonna see a couple tabs. One is chat. That is just for kind of administrative chat, things that we're gonna post in there that are maybe updates, for you to to see. If you look into the next one, is docs, that's actually a really great one. In there, you're gonna see a copy of the most recent tariff blogs, so the updates on what's going on in tariff world, Middle East crisis blog, so updates on what's going on, with shipping to The Middle East. Flexport ocean timeliness indicators are just giving you an idea of of stability in the market. Today's slides, of course. So if you wanna take today's slides, home with you, bring them to your company and share them internally, you'll have a a way to do that there. The other one is Flexport Atlas. So this is the new tool that we launched, last month where you can see every ship and every route in the world for containerized freight. Really cool. If you haven't looked at it yet, I really recommend clicking on that one. I'll be referencing it on a on a slide, later in the presentation. And then also, if you wanna sign up for the latest on tariffs, March, we'll be having a tariff trends webinar. The next tab over is q and a. So if you have any questions at any time in the webinar, go ahead and drop them into that q and a section. We will get to as many of those as we can at the end of the presentation. Alright. Before we get into, the content, a brief legal note. Please keep in mind that all information provided in this session is based on the situation at this current time. It may not be customized to your specific business requirements. We always recommend reaching out to a Flexport expert to discuss your particular situation. Alright. Again, my name is Nathan Strang, director of ocean freight. With me is Kyle Bolu. He is senior director and head of ocean for Americas. And David Grunwald, he is a regional director of air freight at Flexport. On the agenda for today, I'll be covering operations. We'll kick it over to Kyle for our Transpacific market update and then over to David for air freight update. Then, of course, leaving enough time for your questions. On to operations. Alright. I'm gonna start with a map overview before we kinda get into some more specifics. Couple things I wanna call out, generally fluid through the the Pacific Southwest, the LA ports as far as rail and trucking goes. Prince Rupert has been seeing quite a bit of delays. They're showing six to nine days of delays right now. A lot of that's due to some acute winter weather moving through the mountain passes coming out of Prince Rupert and going into the Canadian Plains. Vancouver is a little bit, dwell as well for similar reasons, but there's no delays, right now reported out of Seattle Tacoma. This and that's despite the fact that winter weather has mitigated across most of Canada. This is kind of residual effects of some of the storms that came through the West Coast and some other, weather related, issues of rail through Canada, but those should be improving. Prince Rupert, I said six to nine, but they're forecasting to get back to normal within about one to one and a half weeks. As far as the the rest of The US, smooth sailing through Houston, Savannah is, is dealing with fog. They will be dealing with fog now through probably about May. It's about that time of year. And New York has seen some some bad winter storms. So I'm sure you've seen some delays of of getting your containers in and out of those ports. Moving over to Europe, still a lot of disruptions out of Northern Europe. So Hamburg is at 90% yard utilization as well as Rotterdam. Once you kind of get above 80%, 85%, it makes it difficult to kind of move containers around as you're getting very full. Vessel bunching is also occurring, due to different routings either through Suez, around Cape Of Good Hope, and also just because of delays coming, landing once they get there because of the congestion in the yard. Going o moving over, I'm gonna skip over Middle East for now. I'm gonna have a couple slides on that one, so I'm not adding it to the map. But services through the Middle East, I'm sorry, services into, Indian Subcontinent, we're seeing some disruptions because a lot of Middle East cargo goes through there. So we're seeing some of those container ports back up a little bit. We've also seen a few labor disruptions come and go through there that's kind of adding a little bit of congestion to that. Most of those have been resolved at this point. Switching over to China for a second, we're seeing heavy, birth congestion still at Qingdao and a little bit at Ningbo in Shanghai. And then Manila is dealing with two to three days of, general berth congestion, but acutely at, Manila North Terminal where we have four to five days of delays. Singapore is probably the biggest, impact right now in terms of everything that's going on in The Middle East. We're seeing a lot of cargo that was destined for The Middle East piling up there. It is a transshipment port, so that's why we're seeing, it as a as a place where cargo is kind of getting, dropped off by vessels. So very high yard utilization there, 90% in climbing. Says one to one and a half days of delay. That's that's increasing. It's on the increase. I think the last time I checked, we're now over two. So when I built this slide, it was one and a half, and we're already at two days of delay. So something to keep a look, an eye on as we're going forward if you're moving anything out of Indonesia, out of certain ports in Malaysia, certain South Asian ports that transship there, or if you're transship in going east or west out of Asia or the Indian Subcontinent through Singapore, you could see some delays in in service as you're moving through there. Alright. Moving on to the Iran conflict. This is the kind of what we know. So I built this slide, like, day and a half ago, and and a lot of information's already changed. So they're about overall so what you're seeing here is a snapshot of Flexport Atlas. I said, you know, if you go to atlas.flexport.com, you can see this. Then if you click the d button on your keyboard, it will bring up this disruptions, view where you can, zoom in and see where the disruptions are. So in total, there are 202 vessels that are currently directly or indirectly impacted by the Iran conflict. Now this is either vessels that are actually within The Gulf, in transit to or to The Gulf, or have been rerouted. So it's it's a big number, but a lot of those are rerouting. So direct impact vessels that are actually inside of or directly impacted in the Straits Of Hormuz. There's about 14 of those vessels that are within the Straits Of Hormuz area and then about another 80 vessels that are in the Arabian Gulf, Arabian Sea area. So a lot of those are regional traders. Not many of them are mainline vessels. So we're talking regional traders or things that are, 2,000 to 4,000 TEU. We're not talking, you know, a lot of large 12,000 TEU ships. However, there are a handful of those ships that are stuck right now. There are, three services that are inside of the of the of the Strait Support Moves that can't get out. And then there's a couple services that are waiting to get in and or waiting on direction of what to do on the outside. So overall though, there are 81 services that call the Port Of Jabali, which is another major transshipment port. So it's a again, a lot of regional feeders move into there, and connect to a lot of the Middle East and Indian subcontinent region. All that is gonna be disrupted. It's about 200,000 total containers. So in terms of global number of containers, that's that's not a lot as a big percentage, but they are out of position. So that's why we're seeing congestion start to build in places like Singapore. We also saw several, vessels that were, struck either directly or indirectly in the conflict. That's causing a lot of trepidation, of course, with the carriers about possibly returning to the Strait Support moves and what that's gonna look like. So most carriers have put in as part of their carrier response restrictions about even approaching The Gulf. Most of them imposed a 200 mile restriction around around the Strait support moves that they will not approach. Again, doesn't impact a lot of other services or the ones that are already impacted. So services have been suspended. Ports of Oman, remain open, as does the non Gulf ports of Saudi Arabia like Jeddah on the Red Sea. So those are still open. There are I'm gonna hit bunker surcharges on the next slide, but there are war risk surcharges and emergency bunker surcharges that are coming into the market. They have varying validity dates. The war risk surcharges are specifically for Middle East bound cargo. So if you have anything bound to a Middle East country, check with your provider and see if a war risk surcharge is applicable. They will have varying start dates including post sailing. So war risk surcharges can be pretty complicated. So check with your provider if you have anything that's going to the Middle to or from The Middle East to to assess the impact. Alright. Talking about bunker rates. So, vessels talk in bunker. Bunker is the fuel that that goes into a ship. For the most part, it is VLSFO, very low sulfur fuel oil, which is sort of a oil sludge that the that the ships burn. They also some also burn, LNG, natural gas, but for the most part, we're talking about the VLSFO fuel here. So VLSFO is, of course, tied to the oil price. We saw the oil prices surge. This graph I pulled yesterday from shipandbunker.com, you can you can see how vertical that line went very quickly. We're at about $907 per metric ton. At the February, we were we're at about $500 per metric ton, so nearly doubled, and one and a half times over over last year. When I pulled the graph actually, the first time, we were over 1,100, so we had doubled. It's recovered just a little bit, but then stabilized. So what does this mean for everybody? It's like, well, I don't have cargo going to The Middle East. I I only moved from Latin America to Africa. Why how does this impact me? Well, oil is traded globally, and bunker is traded globally. So there is gonna be a global impact to this. This graph is the top 20 bunkering ports. So this is a global fuel index that we're looking at here. So what are carriers gonna do about this? They're gonna start imposing emergency bunker surcharges. So this is basically a fuel recovery, kind of everybody has to chip back in again to to pay for the fuel that's gonna go into the ships, in order for them to be able to to fuel. So if you aren't aware of fuel, fuel is bought on what's called a recovery price. That's why your gas at the gas station goes up so fast. So that means it's you're paying at the pump now for the fuel that's gonna go back into the tank later. So they're they're looking at where they're gonna have to refuel at and how much it's going to be, and that's what they're pricing into the market right now. So for non FMC trades, which is non to or from The US trades, you're gonna start seeing those charges pretty much come into the market immediately. For coming into The United States, there's a thirty day tariff filing deadline. So most of them start around the April, and that is for for basically departures within those time frames. Exact charges are going to vary, so please reach out to your representative. Reach out to your Flexport representative. Let's let's start talking about what those those charges are gonna look like for you because they vary based on a lot of things, including length of trade. Right? So how far the the the the container is moving and how much fuel it's burning in on those trades. But for the most part, carriers are trying to make these as uniform as as possible. The other variants will be type of equipment. Reefer is going to be more than than dry because reefers burn fuel, while they're at sea because they're plugged in for for, for power. That was a lot. I I understand that. So, and and try to cover a lot in a short time. So if you have any questions, again, please check out our our blog, check out, Flexport Atlas, and, of course, reach out to a Flexport representative. We would be happy to jump on a call with you and and and talk through how it impacts your particular situation. And with that, I'll hand it over to Kyle for a Transpacific update.

Kyle Beaulieu

Thank you, Nathan. Yeah. So since Nathan got to cover all the disruption that's impacted ocean shipping since our last FMU, I figured I'd put that in the context of our normal reviews around supply and demand. So first up on the supply side, the good news is that, there the direct disruptions are minimal so far based on the situation as it is today. So there's no Suez disruption as the TPB East Coast services routing that way have been going around the Cape Of Good Hope for over two years. Right? That's been our new normal. So prior to the Iran conflict, there was some hope or I'd say prospect of maybe them returning in 2026, but consider that off the table now for this year. As we reviewed in the February FMU, there were multiple ISC services that had started testing Suez routings in January and February, but those are now being rerouted around the Cape Of Good Hope. So in the short term, these disruptions are immediate. So as the ships are the ships are now out of position, and there are more blanks in the coming weeks out of the ISC region, In the long term, there's an impact on this sub trade as well, because there are now more built in structural blanks, as the services actually don't have enough vessels to sail every week. There is operational congestion that's expected to hit TPEV. And so this is due to the offloading of cargo at transshipment hubs. So think of Naveshiva, Colombo, maybe even Singapore, Busan as possible destinations for all the cargo that's stuck on vessels. This congestion and mass offload of equipment has not hit the market too much yet. Nathan spoke to a couple increases that we're seeing there, but it hasn't been too big yet. The good news overall on TPEB is that capacity remains very healthy. Look at the line. It's the best we've had in a few years. For March, the averages per gateway are on are on par with February, but that's really due to heavy blanks in the first half of the month. So deployment for the next two weeks is actually over 90%, overall in the trade, and the outlook for April, as you can see here, is very healthy. So all in all, TPV is very much in a similar place from a supply standpoint as it was prior to the Iran conflict, and supply is healthy. But we will be on the lookout for ripple effects that could hit the trade in the coming weeks and potentially months. Now we'll, take a look at market rate movement. So, March 1 did see slight increases on most trades from Asia. So this was not related to the Iran conflict, but due to a portion of suppliers starting to come back online after CNY and heavy blanks from the region. The rate fluctuations from the impact of the Persian Gulf on global networks are only beginning to hit the market. So you should expect a more volatile March with rate increases projected across multiple trades globally, including TPV, ISC and Far East Westbound, those real headhaul trades. This increase will be driven by the dual impact of the Persian Gulf fallout and post CNY demand coming back online. Now traditionally and historically, demand does pick up because suppliers are coming back online, but it's usually not a very amount a heavy amount of demand in March. And so it's usually not enough to drive the market too far upwards. So we'll see how much the Iran conflict really influences that that calculation for for rate movement. As Nathan spoke to, there will also be surcharges impacting rates. So into and out of the Persian Gulf countries, there are now war risk surcharges, emergency conflict surcharges, and various name combinations that carriers deploy to respond to the conflict there. These have hit both in transit cargo and booked cargo in and out of the region, though it is important to note there are now booking holds on a lot of trades into and out of the region due to the disruptions that Nathan was speaking to. Last, carriers are assessing the fuel impact, as Nathan alluded to and referred to in the bunker piece. So they're implementing emergency fuel surcharges or BAF adjustments in response to the rapid increase of those bunker costs. You can see that just barely at the end of this, for the trade that responded quick list to it in Asia to Latam. These costs do vary by trade, and the timing varies as well, but they're either in the market today or coming into the market over the course of the next month. And so the rate situation will be very fluid over the coming months, so recommend you stay in touch with your your Flexport representative, for the latest on on the situation and how it's impacting everything. So, now with that, we'll we'll head to David and hear how everything's impacting the air market.

David Grinevald

Thank you very much, Kyle. Good morning, everybody. David Grineval here, Regional Airfreight Director at Flexport. And this morning, we're going to be talking, obviously, about the major disruption that the current conflict in The Middle East and in Iran, in particular, has brought to the air freight market. But we will also try to move beyond the conflict and look at how those ripple effects are actually playing out in the global supply chains as a whole. So when we look at the situation in The Middle East, what we really want to be looking at is, number one, airspace status. Because since the start of the stillities, at least eight countries had originally shuttered their airspace, and that includes Iran, Israel, Iraq, Jordan, Qatar, Kuwait, Bahrain and The UAE. Some of those airspace have been gradually reopening, which we will see in the next slide. The second thing we want to look at are actual airport operations. There are some major global hubs for both passenger air and cargo airfreight. And we've been seeing that airports such as Dubai, Abu Dhabi or Doha have either suspended or severely restricted their operations. And then the last thing we're going to be looking at is carrier status and the way that this has been evolving and the situation has been very fluid. And like Nathan and Kyle have underlined, the situation is changing honestly by the hour. So we're going to try and give you not only a storyline, but also the latest update on this situation. So when this when the hostilities begun on March actually, February 28, but by March 2, the global air cargo capacity was down by about 20%. This is not a perfect comparison because as we have actually mentioned in our last FMU Live, the Lunar New Year came at a different time than other years this year, so it's not a perfect comparison. But the important point to keep in mind here is that the Middle Eastern airlines represent about 13% of global air cargo capacity with a very, very strong share when it comes to the Far East West bound, so the Asia to Europe trade lane. Even though airlines like Qatar Airways, Emirates and Etihad represent 10% to 15% of cargo capacity to European airport, we, at the beginning of the hostility, have seen an overall capacity decline of 15% to 20%. Now you might be seeing on the visual that we're showing on the slide here that the global capacity decline has actually eased to only minus 8%. And that is because, as we will see, some airspace have reopened and some airports have gradually resumed their operations. The Southeast Asian airports, and now we are entering the ripple effects, have been seeing an average capacity cut to about 20%. This is due to flight cancellation. And the biggest impact is mostly notable in the Indian Subcontinent with airports like Mumbai and Dhaka, where we're seeing up to a 40% reduction. Okay. So where are we today? The graph that you're seeing in the bottom right corner is showing you the gradual recovery that we are seeing from the Gulf Region, both in terms of airports and carriers. The airspace remain closed over Iran, Israel, Iraq, Kuwait, Bahrain and some parts of Saudi Arabia. The UAE and Qatar have partially opened their airspace. But obviously, they remain subject to a very strict oversight and operation is still very much constrained. Some major global hubs, like we said, Dubai, Abu Dhabi, Doha, are now operating again, although under restricted conditions. And the carriers, Emirates back at about 60%, Etihad only 15% and Qatar only 10%. These are the Middle Eastern carriers. If we're looking now at the European and American carriers, your Lufthansa, your Cargolux, United, Air France, KLM, most of them have not resumed operations and continue to have a cargo embargo to and from the region. Now what we are seeing, and again, this is like Nathan said at the very beginning of the webinar, this reflects the current situation as of today. So with this sort of stabilizing security situation in the region, and I feel bad even saying that, the airspace and schedule will most likely become more consistent and the frequency should increase. Okay. So now looking a little bit beyond the conflict and looking at global market trends. And I think what's very interesting here is to see that right before the conflict started, we were actually airfreight was actually in a rather good position because global volumes had actually increased 5% to 6% year over year through February. And like many times when I've been doing those freight market updates, what we are seeing is kind of a tale of two worlds. So even though we've seen Far East Westbound plummeting due to the hostilities, at the same time, we've seen a surge of about 13% week over week in APAC volumes, and that is mostly due to your traditional historical post holiday backlogs being cleared out of Asia, which if you look at the global volume, it sort of masked the initial conflict shock. Another trend that we've been talking about for the last two or three webinars is the fact that there is competition for capacity. Your high value tech shipment, most notably out of Taiwan or Hong Kong, are increasingly crowding out general cargo. When we look at prices, the global rates were actually softening just before the conflict. But now, as you can imagine, and for some of the same reason that Nathan and Kyle have mentioned, including the increase in fuel prices, we are now seeing a sharp reversal to ad hoc pricing. And on some lanes, we're seeing carriers only extended pricing with a twenty four to seventy two hours validity. Macro disruptors, we talked about it at length, so I'm not going to spend too much time on this, the rising fuel and operation cost. The one thing that is specific, obviously, to airfreight is the fact that with a lot of those air spaces being closed, what it means is that flights have to be rerouted. This is a longer flight schedule, and that means that they have to bring on more fuel and reduce their payload. Another interesting thing that we are starting to see and we're expecting that this is going to continue in the next couple of days is this modal shift. Some shippers have to shift sea to air, which is further tightening the global air supply. And I will end with the traditional traffic light that those of you who come regularly to our webinars know. We are doing a focus on TPE. North China, like we said, steady post CNY recovery. We're seeing the rates increase just a little bit anywhere from $0.03 0 to $0.50 per kg. South China out of Hong Kong, the demand is rising and the rates continue to increase. Taiwan, we mentioned it. This ongoing high-tech boom is still going on, and we're seeing space to The U. S, most likely the large hubs like Chicago or Los Angeles tightening. Vietnam and Thailand are very interesting in the sense that these origins rely heavily on Middle Eastern carriers and the current conflict disruption has created a massive capacity shortage. I was just reading this morning that it is slightly softening out of Thailand with airlines like Cathay Pacific restarting their flights, but we are really advising our customers to take a five to seven days booking lead time out of this origin. Operational intelligence. Our advice for you guys, number one, anticipate as much as you can out Asia, obviously. Sea air alternatives, we have very interesting products if you guys are shipping to Europe and you want to avoid the current Middle East disruption. And lastly, of course, but you guys already know that, try to be as preemptive when it comes to inventory balancing, identify your high velocity SKUs. And if we can help you airfreight those, we'll be happy to do so. I will stop here and invite my colleagues back so that we can start taking questions.

Nathan Strang

Alright. Okay. Here we go. Going into q and a. I think Kyle might have dropped off. He has a hard stop at the bottom of the hour, so he might not be able to join us, for q and a. We'll try and

Kyle Beaulieu

I'm here.

Nathan Strang

he is. He's back.

Kyle Beaulieu

Yep. Sorry.

Nathan Strang

Kyle does have a hard

Kyle Beaulieu

just hit the wrong

Nathan Strang

hour,

Kyle Beaulieu

button.

Nathan Strang

though. So we're gonna kick the q and a over to him first. So if you wanna take. it, Kyle.

Kyle Beaulieu

Yeah. Yeah. Sorry. Hit the wrong button. Yeah. Lots of lots of questions today as we'd expect. So first one, will bunker rates impact contracts, or will carriers respect contract rates? So, bunker rates will hit impact contracts. So most contracts, either have a Ts and Cs that allows for for some sort of emergency fuel surcharge if and when the situation arises, or they have, some sort of floating, bunker mechanism in it that responds to, the global cost and bunker cost. So, those contracts will be impacted, by one of those two bunker bunker pricing mechanisms. Nathan, another energy impact to you question.

Nathan Strang

Hold on. Okay. Besides, the impact of to energy prices, how much does the issue straight of Hormuz affect The US, hurting mostly Middle East and Asia? So covered a little bit of this. So any kind of disruption in, you know, global trade is gonna have, global ripple effects. You know, the the services that call there, there's a lot of transshipment. A lot of that cargo does end up on vessels that will call US ports at some point, either directly or indirectly, you know, Middle East to Asia, Asia to Middle East, things like that. So it it does throw equipment out of out of out of whack. I would say that the the big impacts, again, are the transhuman ports. So it's things like Singapore, Hong Kong, again, the loss of Jobele, Colombo. We're gonna start to see, you know, some cargo that was destined there, start to pile up. And this kinda goes to another question, you know, what happens to the containers that are in route. So the reason you're seeing congestion there is that there was already containers moving. Right? It takes, you know, thirty, sixty plus days for for cargo to move from certain parts of the world to certain others. So there's already cargo moving. So that cargo isn't gonna continue there. It's going to get dropped off. So the carriers will declare what's called force majeure. They can then drop the container at the next port of convenience for them, and then the consignee on the cargo is responsible for moving the container or the goods from that location to their final destination. Now if you're worried about that happening to you, please contact the Flexport representative. Again, this would be cargo that is destined for a Middle East port. It wouldn't they they're not gonna just do this for, you know, Lambda Bank to Los Angeles cargo. It would have to be something going to The Middle East. So you should have already been informed on this, but any disruption turns into a global disruption. The other disruption is with fuel. Carriers are gonna have to mitigate those fuel costs in in in a couple different ways. One, of course, is to impose a fee, but, you know, that that is an increase in cost. They may not wanna increase cost fully. So things like slow steaming. A vessel that slows down by about four or five knots or about, you know, five to seven miles an hour saves, like, 30% of its fuel costs. Like, it's a it's quite a curve when you look at how much fuel a vessel saves by slowing down. So, again, we could see vessels slow down just to mitigate fuel costs, especially if the market remains soft, or flat, and there isn't demand for the the space anyway. So those are the kind of ripple effects that you'll see. Again, mostly kind of a a fuel related.

Kyle Beaulieu

And I'll take a split one for for myself and David. So the question is, are there any major issues out of Mumbai to The US East Coast for both sea and air? So there are the disruptions of those services that were routing via the Red Sea. So those ones have had to reroute around the Cape Of Good Hope. So that was a immediate impact. And on the ocean front, it does mean there are quite a few blanks in the market for ISC, from, like, the Appeshiva, to The US East Coast in March. So a lot of blanks there. And then over the long term, it's not expected that those, services will reroute via the Red Sea, so they will be over the Cape Of Good Hope, which does build in some more structural blanks in their services. David, any immediate major issues for Mumbai to The US East Coast for air?

David Grinevald

Yes, absolutely. I think the situation that we're seeing out of India, whether it's to The U. S. East Coast or West Coast actually, is probably, I would say, the most severe, again, because of the reliance that India does have on Middle Eastern carrier. So we're seeing two things. Number one, a serious drop in capacity and an increase in transit time. So, you know, same same advice here. Really do plan ahead and and include those longer transit time in your planning.

Kyle Beaulieu

I'll take another question here. So can we expect to see surcharges implemented for lanes that have been routing around the Cape Of Good Hope for the past two years? Yes. So the, you know, war risk surcharges, those type of things haven't hit those trades unless you're going in and out of, the Persian Gulf. But, the the emergency fuel surcharges or, fuel adjustments, that we spoke to, those are hitting, the services that have been routing around the Cape Of Good Hope. Also, I think it's important to note for that, the most expensive thing about carriers routing around the Cape Of Good Hope for the past two years has been the fuel. So it's a lot longer of a transit, than the Suez, so that cost is really increasing for them for for those routings and not being able to go via the Suez. So they're getting hit with that dual impact of of that longer transit plus the the increase in in fuel costs. David, we have another air freight one for air freight from China to The US.

David Grinevald

Yes. Absolutely. So the question was air freight rates from China to The U. S. And also from China to Europe. So I'll start with the second one. China to Europe has really been the most impacted trade lane in terms of rates increase. It will depend on your origin airport, but I can give you guys some example. I think one of the most dramatic increase we've been seeing is out of PVG, so out of Shanghai, where we've seen rates increase up to 67%. Another one is also out of Vietnam. We've mentioned it, like Vietnam to Europe up 50%. When we look at TPEB, the increase has been a lot more reasonable. So I'll give examples like Hong Kong to The U. S. Has increased about 5% to 6% Shanghai to The U. S. A little more, 16%, but that is to compare to the 60% that is Shanghai to Europe. So in essence, huge increase on the Far East Westbound increases, but more reasonable from Asia to The United States. There was another question on air, which I can also answer very quickly. Someone asked about Oman Airport. This is an extremely relevant question. Since the beginning of the crisis, we've seen other regional hubs serve as kind of like a secondary solution. At the very beginning of the crisis, we've seen a lot of reroutings to regional airports such as Cairo or Istanbul. Right now, we are seeing the carriers getting organized and indeed going either to Oman or to Riyadh, actually as regional hubs. And we are working with some of our customers to use more regional airlines to kind of get them out of the region and then get them on longer transatlantic flight. And yes, absolutely, Oman and Riyadh are two main airports.

Nathan Strang

Okay. I think I think at this point, you know, we're a little bit over time now. It's about time to wrap up. So I'm just gonna give one more kind of summary just kind of for for everyone here at the end. And then, again, if you have any questions, please reach out to our flex Flexport representative. Go to atlas.flexport.com. Push the d key on your keyboard, and you can see the disruptions layer, but also just get an idea of if you go to, like, Singapore, for instance, you'll see how much dwell, and delays there are right now for vessels. But it is the global impact in terms of fuel. Right? So we're gonna see fuel prices rise, both on ocean and in air. We're gonna see regional disruptions, especially in transshipment. Again, air and ocean as cargo is rerouted, as airlines are rerouted, as vessels are rerouted. So expect delays, you know, moving through transshipment for us. Expect possible slow steaming. Expect to see surcharges come in. But, again, get with your Flexport representative. We'll do the best we can to kind of walk you through this. We're all available to join a call with you and your company and and and talk through all these things in more detail and specifically how it impacts your cargo. Again, also tariff webinar because that's never, never boring next week. So go ahead and register for that one. Again, slides are in docs. All the links that we discussed to everything are in the doc tabs. Again, thank you all for joining, and we will see you again next month.

David Grinevald

Thank you, everybody. Bye bye.