Freight market update - 9 January 2025

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• The U.S. East Coast may face significant disruption in early 2025 due to a potential strike by the International Longshoremen’s Association (ILA) amid unresolved contract negotiations.

• December rate increases have been partially successful, resulting in higher overall levels compared to November.

• MSC plans to launch its standalone East-West network, 'Mustang,' in 2025, connecting key hubs such as Xiamen, Ningbo, Shanghai, Busan, Seattle, Vancouver, and Portland.

• In September, Maersk and HPL introduced an additional TP7/WC5 loop, enhancing service coverage to include Busan, Ningbo, Los Angeles, and Yokohama.

• The North America Freight and Logistics market is expected to grow significantly, expanding from US$ 1.5 trillion in 2024 to US$ 2.0 trillion by 2031, representing a CAGR of 4.0%.

• CPP Investments is set to realize approximately US$2.2 billion in net proceeds from its investment in the Goodman North American Partnership (GNAP).

• A hazardous mix of snow, sleet, and freezing rain in the U.S. moved into the Mid-Atlantic region on Monday.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• India’s rates remain stable after recent volatility, supported by increased carrier allocations.
• The threat of strikes at Indian ports has diminished following the official approval of a wage and pension contract agreement, easing concerns about disruptions to cargo flow from major ports.
• Transshipment delays persist at Colombo due to adverse weather and congestion, continuing to impact schedules.
• Carriers are preparing for an anticipated rise in demand in early January as the traditional peak season approaches.
• Shippers are advised to confirm bookings early to avoid potential space constraints.
• Container fleet capacity on the Transpacific (TP) trade has grown by 4.2% year-on-year.
• MSC plans to launch its standalone East-West network, 'Mustang,' in 2025, connecting key hubs such as Xiamen, Ningbo, Shanghai, Busan, Seattle, Vancouver, and Portland.
• In September, Maersk and HPL introduced an additional TP7/WC5 loop, enhancing service coverage to include Busan, Ningbo, Los Angeles, and Yokohama.
• Space remains tight, with carriers reporting full bookings 2-3 weeks in advance.
• Blank sailings are significantly reducing capacity, particularly in the second half of December, with cuts nearing 25% in Week 52.
• December rate increases have been partially successful, resulting in higher overall levels compared to November.
• Forward bookings are advised 3-4 weeks ahead due to reduced availability and peak seasonal demand.

Central China (SHA/NGB)

• Shanghai (SHA): The market remains soft, with rates declining. Bookings should be made at least one week in advance to secure capacity.
• Ningbo (NGB): Rates are trending downward, and it is recommended to confirm bookings at least a week in advance.

North China (TSN/DLC/PEK/TAO)

• Tianjin (TSN): Strong demand persists, requiring space to be secured 5-6 days in advance, especially for routes to LHR.
• Dalian/Beijing (DLC/PEK): Rates remain stable overall. Spot rates are available for dense cargo, but larger shipments may need 7-10 days to book and risk flight splits.
• Qingdao (TAO): Space is stabilizing compared to previous weeks, with rates decreasing on key European routes.

South China (CAN/SZX/XMN)

• Guangzhou (CAN): The market is strong, with limited space availability.
• Shenzhen (SZX): Rates are rising, and space remains constrained. All bookings require case-by-case rate confirmations.
• Xiamen (XMN): Rates are decreasing, and demand to the EU market has declined.

Turkey → North America

• The North America Freight and Logistics market is expected to grow significantly, expanding from US$ 1.5 trillion in 2024 to US$ 2.0 trillion by 2031, representing a CAGR of 4.0%.
• Growth is fueled by rising trade activities, a booming e-commerce sector, and industrial advancements.
• Investments in infrastructure, such as roads, ports, and railways, are enhancing logistics capabilities.
• The adoption of digital technologies like AI and big data analytics improves supply chain visibility.
• E-commerce and cross-border trade growth, coupled with strong demand for third-party logistics (3PL) services, are key contributors to market expansion.
• Challenges include industry consolidation and service quality issues within the rail sector.
• Despite these challenges, the market is expected to thrive, driven by technological integration, increased energy exports, and a growing reliance on road transport.
• North America is poised for a supply chain revolution as it recovers from the pandemic and embraces advanced technological innovations.
• Efficient and cost-effective freight solutions are increasingly in demand to facilitate goods delivery across vast distances.
• A hazardous mix of snow, sleet, and freezing rain in the U.S. moved into the Mid-Atlantic region on Monday.
• The storm previously hit parts of the Midwest with heavy snow.
• Air and train travel were disrupted due to the storm's impact.
• Over 350,000 people from Missouri to Virginia were without power on Monday morning, according to a utility tracking website.
• Several states in the storm's path declared states of emergency.
• Dangerous driving conditions were anticipated from West Virginia to Delaware, according to the Weather Prediction Center.
• Up to 12 inches of snow were expected in some areas, including Washington, D.C.

North America → Turkey

• The U.S. East Coast may face significant disruption in early 2025 due to a potential strike by the International Longshoremen’s Association (ILA) amid unresolved contract negotiations.
• While discussions about pay increases seemed resolved in October, reports indicate that critical issues remain unsettled.
• A key point of contention is the unclear stance on automation, which has caused confusion among negotiators and heightened concerns about outdated U.S. infrastructure.
• The broader context suggests that infrastructure modernization could also become a bargaining point in the negotiations.
• For shippers and carriers, the anticipated strike may disrupt flows through key East Coast gateways, although there are no current indications of front-loading cargo.
• CPP Investments is set to realize approximately US$2.2 billion in net proceeds from its investment in the Goodman North American Partnership (GNAP).
• This marks the culmination of a successful partnership and demonstrates the strong performance of the investment.
• CPP Investments and Goodman Group maintain active partnerships across multiple global markets.
• "The success of GNAP allows us to lock in strong returns for the CPP Fund while continuing our partnership with Goodman," stated Max Biagosch, Global Head of Real Assets & Head of Europe for CPP Investments.
• The proceeds from this transaction will enable CPP Investments to redeploy capital into new opportunities as the portfolio evolves with global market trends.
• GNAP was established in 2012 as a 45-55 partnership between CPP Investments and Goodman Group, with a focus on high-quality logistics and industrial properties in key North American markets.

Terminal Updates

• 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:

• 2.5 days waiting time expected for APMT, no waiting time at Maher Terminals, and up to 5.5 days at Port Liberty Terminal Bayonne.
• Average gate turn times are 40 / 67 minutes for single and double transactions respectively.
• APMT - new cranes arrived and are in process of being commissioned.
• Berth space will still be limited but 2 vessels will now be able to be worked simultaneously.

Norfolk:

• Waiting time for a berth is up to 1.3 days this week.
• Average gate turn times are 36 minutes for single transactions and 51 minutes for double transactions.
• One crane is out of service.
• However, it is expected to be back working next month.

Charleston Terminal:

• 24 hours waiting time for Wando Welch Terminal and 6 hours for North Charleston Terminal.
• Average truck turn times are 19 minutes at Wando Welch Terminal and 21 minutes at North Charleston Terminal.
• Average truck turn time at Leatherman is 23 minutes.

Savannah:

• The average waiting time for vessel berth at the terminal is 2 days for class 1 vessels and 2.3 days for class 2.
• Average gate turn times are 38 minutes for single transactions and 53 minutes for double transactions.
• Import dwell time is 2.7 days.
• Rail dwell time is 1.2 days.

Houston:

• Up to 0.5 days waiting time for vessel berthing at Barbours Cut Terminal and no waiting time at Bayport Container Terminal.
• Average gate turn times at Barbours Cut Container Terminal are 34 minutes for single transactions and 55 minutes for double transactions.
• Average gate turn times at Bayport Container Terminal are 28 minutes for single transactions and 45 minutes for double transactions.
• Loaded import dwell is 3.6 days at Barbours Cut and 3.6 days at Bayport.

Oakland:

• 2 days waiting time for Oakland Int’l Container Terminal (OICT) and no waiting time at TraPac.
• Average import deliveries can take up to 5.3 days at TraPac and 3.5 days at OICT.
• Average gate turn times are 78 minutes at OICT and 84 minutes at TraPac.
• The Port of Oakland has started a bollard and fender replacement project at OICT.
• The Port of Oakland has started a bollard and fender replacement project at OICT, starting with Berth 55 through Berth 59.
• Project expected to finish at the end of February 2025.
• Berths 55, 56 and 57 are now complete, work has moved to Berth 58.
• OICT will be closed December 24, 25 and 31, 2024 and January 1, 2025.
• TraPac will close at 3 pm on December 24 and 31, 2024.
• It will be closed all day December 25, 2024, and January 1, 2025.

Seattle-Tacoma:

• 6.5 days waiting time at Husky and 1 day at Washington United terminal at Tacoma.
• No waiting time in Seattle.
• Import rail dwell are 4 days at Husky, 4.2 days at Washington United Terminal, and 1 to 3 days at T18.
• The average gate turn times are as follows: 44 minutes for T18, 37 minutes for Washington United Terminal, and 70 minutes for Husky.
• T18 will be closed on Dec 20 and 24 2024.
• Husky and Washington United Terminal will close at 15:00 hrs. on December 24 and 31 ,2024.
• All terminals will be closed on December 25, 2024.

Los Angeles/Long Beach:

• Port of Los Angeles dwell time for local import cargo is 3.2 days.
• On-dock rail dwell is 4.4 days.
• Import units on the street are averaging at 4.1 / 6.8 days for 20 ft and 40+ ft containers respectively.
• Port of Long Beach dwell times for local imports remain at 4-8 days.
• The average terminal gate turn time is between 22-72 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal except:

• Minneapolis / St. Paul - Constrained on a 40' chassis.
• Chicago – Constrained on 20’ and 40’ chassis.
• Cleveland - 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.

Port Status

Final Thoughts

In light of the latest updates and trends, the market is currently in the course of showing 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. 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.