Freight market update - 16 January 2025

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• COSCO Shipping has been added to the U.S. Department of Defense's list of companies linked to the Chinese military.

• In the U.S., the market has been exceptionally strong since September, with port volumes increasing by 10% in September and October compared to the previous year.

• Announced tariff increases by Donald Trump—10% on existing Chinese tariffs and 25% on Canadian and Mexican goods—threaten to disrupt trans-Pacific trade.

• The Asia-Europe trade absorbed 59% of the global container fleet's new capacity in 2024.

• The ILA and USMX have announced a tentative six-year master agreement, averting a strike anticipated for early 2025.

• Blank sailings are on the rise, with additional blank sailings scheduled for February as carriers prepare for the anticipated demand decrease following Chinese New Year.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Blank sailings are on the rise, with additional blank sailings scheduled for February as carriers prepare for the anticipated demand decrease following Chinese New Year.
• Space remains constrained, and forward bookings are recommended for the next 1–2 weeks.
• Liverpool is no longer a direct call for MSC and is now serviced via transshipment across all alliances.
• The Asia-Europe trade absorbed 59% of the global container fleet's new capacity in 2024.
• This capacity expansion aimed to meet rising demand, but concerns about overcapacity have emerged as rates begin to soften due to unmet carrier expectations for January.
• January rate increases were unsuccessful, with rates from late December carrying into early January.
• Rates are expected to decrease further in the second half of January as carriers prioritize high utilization during the Chinese New Year period.
• The ILA and USMX have announced a tentative six-year master agreement, averting a strike anticipated for early 2025.
• Negotiations concluded shortly before the current contract extension expired, addressing automation concerns and job creation initiatives linked to new port technologies.
• Shippers can resume normal operations without the need for proactive rerouting to the West Coast.
• Final ratification of the ILA and USMX agreement is pending member approval, with further details forthcoming.
• Rate increases have been observed for the first half of January on this trade lane.
• Rates have started to increase in January, with space and equipment availability remaining relatively healthy.
• Certain inland container depot (ICD) areas are experiencing delays in container handover processes.
• Traditional peak season demand is rising, driven by North India’s grape season, which is expected to sustain activity.
• Transshipment (TS) ports such as Colombo continue to face congestion.
• Adverse weather conditions at North European ports are disrupting schedules and reducing reliability.
• Space remains constrained across key transatlantic routes.
• Blank sailings are continuing through January, with nearly all alliances announcing blank sailings up to Week 5 to manage capacity and stabilize rates.

Turkey → North America

• Ocean Network Express (ONE), in collaboration with CMA CGM, COSCO, OOCL, and Evergreen Line, will launch three new transatlantic services in February 2025, connecting major European ports with the U.S. East and Gulf Coasts.
• Yang Ming plans to introduce an expanded 2025 transatlantic network, linking major Continental Europe hubs with both the U.S. East and West Coasts.
• COSCO Shipping has announced enhancements to its transatlantic service offerings, set to commence in February, to improve connectivity between Europe and North America.
• Paris-based visibility provider Shippeo announced securing $30 million in strategic funding on Wednesday.
• The funding round was led by Toyota’s growth fund, Woven Capital, to support Shippeo's expansion into North American and Asia-Pacific (APAC) markets.
• Existing investors such as Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good, and Yamaha Motor Ventures also participated in the round.
• Co-founder Lucien Besse highlighted the rising risks in customers' supply chains, emphasizing the need for more efficient and proactive management solutions.
• Besse also noted that competitive dynamics in the North American market are driving demand for credible alternative solutions, creating growth opportunities for Shippeo.
• Shippeo previously raised funds from its existing investors in 2023 to support growth in these regions.
• Since its founding in 2014, Shippeo has raised a total of $140 million, according to the company.

North America → Turkey

• Minimal inventory levels are reported at Prince Rupert.
• Vancouver's inventory levels of IPI ondock have increased but remain manageable.
• The rise in dwell times and inventory levels is linked to CMA and other SSLs' increased imports.
• Train length restrictions imposed by railroads during Canada's winter season have also contributed to the situation.
• The current dwell time is 8–9 days.
• COSCO Shipping has been added to the U.S. Department of Defense's list of companies linked to the Chinese military.
• This designation restricts COSCO's access to U.S. markets, posing potential challenges for the OCEAN Alliance in the evolving carrier landscape.
• In the U.S., the market has been exceptionally strong since September, with port volumes increasing by 10% in September and October compared to the previous year.
• This growth continued through the year's end, driven partly by anticipatory actions regarding potential strikes and new customs duties.
• A recent agreement between the ILA and USMX has prevented an East Coast port strike, maintaining operations under the current contract until full ratification.
• Announced tariff increases by Donald Trump—10% on existing Chinese tariffs and 25% on Canadian and Mexican goods—threaten to disrupt trans-Pacific trade.
• These tariffs could potentially shrink trade volumes by 8% to 12%.

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 53 / 88 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 1.5 days this week.
• Average gate turn times are 36 minutes for single transactions and 50 minutes for double transactions.
• One crane is out of service.
• However, it is expected to be back working next month.
• Potential winter storms could cause delays on January 10 and 11, 2025.

Charleston Terminal:

• 24 hours waiting time for Wando Welch Terminal and 6 hours for North Charleston Terminal.
• Average truck turn times are 20 minutes at Wando Welch Terminal and 21 minutes at North Charleston Terminal.
• Average truck turn time at Leatherman is 19 minutes.

Savannah:

• The average waiting time for vessel berth at the terminal is 2 days for class 1 vessels and 2.5 days for class 2.
• Average gate turn times are 38 minutes for single transactions and 53 minutes for double transactions.
• Import dwell time is 2.4 days.
• Rail dwell time is 1.1 days.

Houston:

• Up to 1.5 days waiting time for vessel berthing at Barbours Cut Terminal and at Bayport Container Terminal.
• Average gate turn times at Barbours Cut Container Terminal are 37 minutes for single transactions and 55 minutes for double transactions.
• Average gate turn times at Bayport Container Terminal are 36 minutes for single transactions and 59 minutes for double transactions.
• Loaded import dwell is 3.7 days at Barbours Cut and 3.7 days at Bayport.

Oakland:

• Average import deliveries can take up to 12 days at TraPac and 4 days at OICT.
• Average gate turn times are 96 minutes at OICT and 93 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.
• TraPac currently has 1,900 units out of spot and unavailable for pick-up.
• Many scheduled appointments are not being fully utilized, adding to operational challenges.

Seattle-Tacoma:

• 5 days waiting time at Husky and 0.5 days at Washington United terminal at Tacoma.
• No waiting time in Seattle.
• Import rail dwell are 4.5 days at Husky, 4.3 days at Washington United Terminal, and 1 to 3 days at T18.
• The average gate turn times are as follows: 38 minutes for T18, 23 minutes for Washington United Terminal, and 80 minutes for Husky.
• Effective January 6, 2025, T18 has moved to a 5 day a week operation.
• Gates are open 8am to 4:15pm. Subject to change.
• Husky is offering continuous hoot gates. Next week’s gates will be January 13,14,15 and 16, 2025.

Los Angeles/Long Beach:

• Port of Los Angeles dwell time for local import cargo is 3.6 days.
• On-dock rail dwell is 5.3 days.
• Import units on the street are averaging at 5.8 / 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 23-65 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal except:

• Chicago – Constrained on 20’ and Deficit 40’ chassis.
• Cincinnati - Constrained on 40’ chassis.
• Dallas / Ft. Worth - Deficit on 40’ chassis.
• Baltimore – Constrained on 20’ and Deficit 40’ chassis.
• Metro NJ / NYC – Constrained on 20’, 40’ and 45’ chassis.
• Kansas City - Deficit on 40’ chassis.
• St. Louis - Deficit 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.