Market Updates Volume 1 - 5 July 2023

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• Capacity in 2023 continues to increase despite weak demand.
• Most major carriers have received less than half of their 2023 orderbook.
• MSC has received just over 30% of its orderbook of 570,000 TEUs.
• Blank sailings are expected to increase as more capacity enters the market.
• Chinese port throughput shows positive growth between Jan and May 2023, with a 4.8% increase YoY, handling 122 million TEUs.
• The Port of Mundra in India is operational but facing delays following Cyclone Biparjo.
• Despite falling demand in Europe and the UK, Chinese ports experience growth due to increased Intra-Asia trade.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Capacity in 2023 continues to increase despite weak demand.
• The majority of new vessel capacity scheduled for 2023 is yet to be delivered.
• Carriers invested heavily in new vessel builds during the pandemic era, contributing to an approximate global capacity increase of 8% in both 2023 and 2024.
• Carriers are facing overcapacity in the current market due to decreased demand in Europe and the US, leading to falling rates.
• To address the supply-demand gap, carriers are implementing blank sailing programs, but the specific trade lanes affected vary among alliances.
• Blank sailings are expected to increase as more capacity enters the market.
• Some carriers are negotiating with shipyards to delay new vessel deliveries.
• Most major carriers have received less than half of their 2023 orderbook.
• MSC has received just over 30% of its orderbook of 570,000 TEUs.
• Chinese port throughput shows positive growth between Jan and May 2023, with a 4.8% increase YoY, handling 122 million TEUs.
• Mainland Chinese ports dominate throughput, with six of the top ten ports in terms of volume handled.
• Despite falling demand in Europe and the UK, Chinese ports experience growth due to increased Intra-Asia trade.
• Chinese manufacturing PMI has contracted for the third consecutive month, standing at 49 for June, reflecting weak global demand and a slow post-COVID recovery.
• Air freight rates from Central China to Europe and the US have risen due to C-Check and poor weather, as well as a surge in E-commerce products.
• Rates from North China to Europe and the US remain stable, with recommended booking timeframes varying by destination.
• Special rates for heavy dense cargo apply from PEK to Europe and the US.
• Rates from TAO to Europe and the US are stable, while rates from CKG to the US have slightly increased.
• South China to Europe and the US sees slight rate increases from CAN due to holiday season-related restrictions.
• Rates from SZX to Europe decrease slightly, and rates from XMN to Europe and the US remain stable.
• The Port of Mundra in India is operational but facing delays following Cyclone Biparjo.
• India’s rail and road disruptions are present between the port and inland terminals.

Conclusions

Rates - The rates will remain soft on most origin-destination combinations.

Space - Space open, no issues with equipment.

Recommendations - We recommend blank sailings to continue. Book at least two weeks before the date your vessel gets ready to depart.

• Congestion at US West Coast ports has eased, while issues have emerged on the East Coast.
• Significant congestion is observed at the Norfolk terminal in the Port of Virginia.
• There are 21 vessels waiting to berth due to vessel bunching.
• Vessels are considering diverting to neighboring ports to avoid the congestion at Norfolk.
• Congestion at the Port of Long Beach and LA has improved, with only 4 vessels waiting to berth compared to 12 two weeks ago, the highest level in 2023.
• Turkey to USA freight has decreased.
• Maersk spot rates are at an all-time low in the market.

Conclusions

Rates - The rates will remain soft on most origin-destination combinations.

Space for capacity - No capacity issues or issues with space.

Space for equipment - No issues with equipment.

• The Port of New York experienced a 5% increase in cargo handling in May 2023 compared to May 2019, and a 4.3% increase compared to April.
• This increase indicates the volume diverted from West Coast to East Coast US ports during the pandemic.
• In 2023, the Port of New York handled 1.6 million TEUs.
• It ranks as the second busiest port in terms of loaded imports.

Conclusions

Rates - Stable rates over the last week.

Space for capacity - No major capacity or space issue.

Space for equipment - Equipment issues have started owing to low levels of import.

• Vessels heading to North America via the North Atlantic Sea are expected to have a change in schedule due to severe weather conditions.

New York:

• No waiting time is expected for a berth at Global Container Terminals Bayonne and APM Terminals.

• No more waiting time at Maher Terminals LLC.

• No empty shut-out situations at any of the terminals this week.

• Average gate turn times: 48 minutes for single transactions, and 78 minutes for double transactions.

Norfolk:

• Most vessels are expected to berth on arrival or within half a day, occasionally experiencing 1.5 day delays for berthing.

• Average gate turn times: 28 minutes for single transactions, and 41 minutes for double transactions.

• One crane down at Norfolk Int'l Terminal, no negative impact is expected this week.

Charleston Terminal:

• 0.5 day waiting time for vessel berthing at Wando Welch Terminal.

• No waiting time expected at North Charleston Terminal.

• Average truck turn times: 20 minutes at Wando Welch Terminal, and 19 minutes at North Charleston Terminal.

Savannah:

• Waiting time for vessel berth at the terminal is up to 3 days, depending on the size of the vessel.

• Negative tides are causing delays for deep draft vessels.

• Conditions are expected to go back to normal next week.

• Average gate turn times are 36 / 52 minutes for single and double transactions respectively.

Houston:

• Barbours Cut Terminal’s waiting time for vessel berthing is up to 1 day.

• The average gate turn time is 49 minutes.

Oakland:

• Average wait time of up to 5 days at Oakland Int’l Container Terminal (OICT) and up to 10 days at TraPac.

• Average import deliveries can take up to 3 / 4 days at TraPac and OICT respectively.

• As yard space becomes available, boxes from TraPac will move to accessible areas for delivering.

• Average gate turn times are 59 / 52 minutes for OICT and TraPac respectively.

Seattle-Tacoma:

• Wait time of up to 8 days at Tacoma.

• Import deliveries are 2.7 days at HUSKY – due to EB/WB railcar imbalance, 0-3 days at Washington United Terminal, and 0-3 days at T18.

• Availability of rail cars in Union Pacific Rail and BNSF Rail continues to fluctuate weekly.

• Average gate turn times are 48 / 29 / 53 minutes for T18, Washington United Terminal, and HUSKY respectively.

• T18 Terminal will be closed on July 4, 5, 14, 21 and 28, 2023.

• Husky will be closed on July 4 and 5, 2023.

• WUT will be closed on July 4 and 5, 2023.

• Starting June, SSA Terminals T18 (Seattle), will offer a fee-based weekend gate.

• WUT has received 2 new Post Panamax Cranes.

• WUT will commence commissioning both at same time in the next 2 weeks, operational by end of August.

Los Angeles/Long Beach:

• All terminal gates are running as published and in line with the Pier Pass program.

• Port of Los Angeles dwell time for local import cargo is 3.3 days, on-dock rail dwell is 3.6 days, and import units on the street are averaging at 4 / 5.8 days for 20 ft and 40+ ft containers respectively.

• Port of Long Beach dwell times for local imports are stable, and the average terminal gate turn time is between 22-93 minutes, depending on the terminal.

• Chassis Pools: All pools are operating as normal except:

1. Columbus - Deficit on 20’ chassis.
2. St. Louis - Constrained on 40’ chassis.

• Intermodal Operations: Truck power can be secured within 1-3 days for the majority of locations, including marine terminals, rail ramps, and depots.

In light of the latest updates and trends, it is evident that the market is currently in the course of demonstrating robust performance and is equipped with ample capacity and resources.

Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions. To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts.

Conduct thorough research on ports that offer available space and suitable equipment despite the ongoing conditions. By doing so, you can minimize complications, facilitate shipments, and maximize efficiency.

Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.