Freight market update - 17 April 2024

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• Containers currently on the water will be discharged and terminated at POD Norfolk.

• Any ad hoc inland delivery needed for Baltimore should be coordinated with the Import Customer Service team.

• Heavy berth congestion has been observed this week in Busan with waiting times averaging around 1.5-2 days, primarily due to the bunching arrival of late incoming vessels delayed from upstream ports.

• Several Philippine ports, including PHBTG, PHCEB, PHCGY, PHDVO, PHGES, PHMNL, and PHSFS, experienced closures ranging from 7 to 24 hours for the celebration of Good Friday.

• The US Army Corps of Engineers has announced plans to reopen the Port of Baltimore by the end of April.

• Air cargo block service agreements from Asia to the US and Europe have been sold out for 2024, driven by Chinese ecommerce giants fulfilling surging demand in the ecommerce market.

• Etihad Cargo successfully completed its inaugural flight from Abu Dhabi to Boston on March 31, adding Boston as the fourth US destination serviced by Etihad's cargo service.

• The North America logistics market reached a size of US$ 1.44 trillion in 2023.

• Looking ahead, the market is projected to reach US$ 1.75 trillion by 2032, with a growth rate (CAGR) of 2.2% during 2023-2032.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• CNFUG, CNLYG, CNNGB, CNSHA, CNSWA, and CNTAO encountered significant port closures due to dense fog, lasting from 3 to 69 hours.
• These closures resulted in heavy berth congestion at the affected ports.
• Waiting and delay times in Ningbo and the WGQ area reached approximately 1.5-3 days.
• These delays impacted vessel operations and caused the bunching arrival of vessels.
• Port closure in Busan lasted for 12 hours on March 28-29 due to strong winds.
• In BNCT, both T/S inventory and yard utilization levels have returned to normal.
• As of April 3, laden yard density is approximately 75%, and CMA T/S inventory stands at around 13.2k TEUs.
• Heavy berth congestion has been observed this week with waiting times averaging around 1.5-2 days, primarily due to the bunching arrival of late incoming vessels delayed from upstream ports.
• The overall situation remains highly dynamic due to frequent port closures in upstream ports, leading to uncertainty regarding the arrival of incoming vessels.
• The ISM Purchasers Manufacturing Index in March rose to 50.3%, up from 47.8% in February.
• Manufacturing industry orders increased by 2.2% month over month, and production surged by 6.2% in the same period.
• Increased demand for goods has led to higher factory production, resulting in rising capex spending on machinery and equipment.
• These indicators suggest a potential manufacturing growth cycle after a year and a half of weak demand and production.
• Etihad Cargo successfully completed its inaugural flight from Abu Dhabi to Boston on March 31, adding Boston as the fourth US destination serviced by Etihad's cargo service.
• The new service is operated by Boeing 787-9 Dreamliners, significantly increasing capacity over the four weekly flights between the two hubs.
• After two decades of relying on FedEx as the primary air cargo provider, the US Postal Service has awarded their new contract to UPS for their air cargo volume.
• Experts view this deal as beneficial for all parties involved, with UPS becoming the primary provider for USPS air cargo needs, and allowing FedEx to focus on cost cutting and downsizing its air network.
• Air cargo block service agreements from Asia to the US and Europe for 2024 are sold out due to Chinese ecommerce giants securing capacity to meet surging demand.
• Rates, particularly to US destinations, continue to rise as overall air cargo demand shows strong growth throughout the first quarter of 2024.
• Singapore Airlines has announced the addition of four weekly flights between Changi Airport and Brussels, utilizing Airbus A350s.
• This marks the return of passenger flights to Brussels for the first time since 2003, previously only serving all-cargo freighter flights.
• The first automated box terminal has commenced operations at Busan Port in South Korea.
• With the port handling approximately 23M TEUs in 2023, the fully automated terminal is expected to boost productivity by 20% and significantly reduce safety issues.
• Rolf Habben Jansen, CEO of Hapag Lloyd, predicts an early peak season due to low stock levels and importers advancing purchase orders to compensate for extended transit times along the Asia route. However, overall demand remains low.
• The continuous decline in rates on the Asia-Europe route has halted. Carriers are attempting to implement General Rate Increases (GRI) for April rates, despite new ship deliveries increasing capacity for the month.
• More blank sailings are being announced by carriers to balance demand and supply.
• In the Transpacific trade, rates are gradually decreasing, prompting carriers to reinstate services, especially on the Asia/North America East Coast (NAEC) trade route.
• Port congestion is on the rise in Asia, primarily due to berthing delays in Ningbo, Shanghai, Singapore, Port Klang, and Busan.

Turkey → North America

• The Army Corps of Engineers has announced plans to reopen the Port of Baltimore by the end of April, enabling smaller vessels to move in and out initially, with deeper hulled vessels expected to transit within two months.
• Air cargo block service agreements from Asia to the US and Europe are sold out for 2024, driven by Chinese ecommerce giants meeting the growing demand in the ecommerce market.
• Larger vessels are expected to resume calling at the port within a couple of months following the reopening.
• Container line reliability improved in February by 1.7 percentage points from January to reach 53.3%, as reported by Sea-Intelligence. This improvement is credited to rerouting from the Red Sea crisis becoming the new norm.
• IAG Cargo, the cargo division of International Airlines Group (IAG), will resume operations from London Heathrow to Abu Dhabi on April 20 after a four-year hiatus.
• Boeing 787-9 aircraft will be utilized, contributing to a 19% increase in weekly trips to the Middle East and Africa.
• The new summer schedule aims to improve capacity and provide greater flexibility to customers.
• The UAE has introduced the new Cargo Data Reporting System (CARDS) to offer an in-depth view of air cargo operations, catering to the needs of government agencies, airlines, ground handling companies, and courier service companies.
• The platform is expected to provide rich insights to enhance the visibility of air cargo operations.
• Global air cargo rates rose in March, with average prices increasing by +2% to $2.48 per kilo.
• The rise is attributed to strong demand from e-commerce and ongoing container disruptions in the Red Sea.
• The North America logistics market reached a size of US$ 1.44 trillion in 2023.
• Looking ahead, the market is projected to reach US$ 1.75 trillion by 2032, with a growth rate (CAGR) of 2.2% during 2023-2032.
• Major factors driving this growth include increasing international trade, expanding e-commerce sector, technological advancements in the logistics industry, and changing consumer preferences towards quick delivery services.
• The demand for logistics services is experiencing significant growth driven by the expanding e-commerce sector and increasing international trade.
• Cross-border trade is on the rise, further escalating the demand for logistics services as businesses aim to reach international customers.
• Efficient logistics networks are essential for transporting goods seamlessly and securely across borders, leading to a growing demand for freight forwarding, customs clearance, and international shipping services.
• The expansion of the e-commerce sector is another major factor contributing to market growth, with more consumers opting for online shopping.
• E-commerce companies heavily rely on logistics to fulfill orders and deliver products to customers, further fueling market growth.
• The rapid growth of online retail has also increased the need for robust last-mile delivery solutions, warehousing facilities, and order fulfillment capabilities.

North America → Turkey

• Containers currently on the water will be discharged and terminated at POD Norfolk.
• Any ad hoc inland delivery needed for Baltimore should be coordinated with the Import Customer Service team.
• Inland deliveries will be invoiced at cost.
• No barge solution is available until further notice.
• Containers still at quay or yet to be ingated in Asia can be rerouted to alternative POD Norfolk or New York.
• Bookings will be rated according to the existing Norfolk/New York contract rate.
• For ad hoc inland delivery to Baltimore, rates can be quoted as per the public tariff.
• No barge solution is available until further notice.
• Due to uncertainty regarding access to Baltimore Seagirt terminal by water, we are unable to accept any booking requests to POD Baltimore until further notice.
• Additionally, barge solutions into Baltimore are not available until further notice.
• The average dwell time for LA/LB ondock IPI was 2.8 days, showing a significant improvement from the previous week.
• LBCT, PCT, and FMS experienced fluid operations with an average dwell time of 1-3 days.
• YTI, due to building density for ondock rail departures, has a 4-day average IPI dwell for small volumes.
• APM, with smaller volumes, had an average IPI dwell time of 6.5 days.
• Several Philippine ports, including PHBTG, PHCEB, PHCGY, PHDVO, PHGES, PHMNL, and PHSFS, experienced closures ranging from 7 to 24 hours for the celebration of Good Friday.
• These closures affected port operations during the specified periods.
• Continued Challenges in MYPKG port:
• Heavy berth congestion persists in MYPKG due to a high number of vessel arrivals and accumulated backlog vessels.
• Terminal productivity remains low because of high yard density and Ramadan stoppages.
• Congestion is expected to last until mid-April according to forecasts.

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:

• No waiting time is expected for a berth at Maher Terminals LLC and APM Terminals.
• Up to 3 days waiting time is expected at Port Liberty Terminal Bayonne.
• Average gate turn times: 46 minutes for single transactions, and 71 minutes for double transactions.
• Terminal change to Port Liberty New York.
• An earthquake hit New York City, New Jersey with 4.8 Magnitude on April 5, 20204.
• However, no issues were reported at Maher, Port Liberty, APMT NYC or Greenwich terminal in Philadelphia.
• All other vessels on AL6 will continue to call Maher terminals.

Norfolk:

• Currently, most vessels berth on arrival, however, the bigger vessels wait approx. 2 days for a berth.
• Average gate turn times are 33 / 46 minutes for single and double transactions respectively.
• Berth congestion had relaxed overall but it is expected to worsen after severe weather delays.
• This is mainly for ships arriving from New York later this week.

Charleston Terminal:

• Waiting time for vessel berthing is 2 days at Wando Welch Terminal and 0.5 days at North Charleston Terminal.
• Average truck turn times: 18  minutes at Wando Welch Terminal, and 23 minutes at North Charleston Terminal.
• Dock construction at Wando Welch terminal is starting in March 2024.
• It is reduced from 3 to 2 berths for one year.
• Berths will be given on a first come, first serve basis.
• This project will also limit the amount of class 1.1 and 1.2 that can be handled at the terminal during this time.
• Sunday gates are by appointment only.

Savannah:

• Waiting time for vessel berth at the terminal is up to 2.5 days, depending on the size of the vessel.
• Frequent river closures are expected due to fog during this week.
• Average gate turn times are 36 / 53 minutes for single and double transactions respectively.
• Import dwell time is 2.9 days.
• Berth 2 is back online helping to reduce waiting times.

Houston:

• Barbours Cut Terminal has up to 1 day waiting time for vessel berthing.
• 2 days waiting time at Bayport Container Terminal.
• Bad weather in the Gulf of Mexico continues to cause closures at ports south of Houston and delays on arrival.
• Due to vessel bunching the yard is facing congestion impacting the discharge productivity and extending port stays.
• Average gate turn time at Barbours Cut Container Terminal is 34 minutes and Bayport Container Terminal is 53 minutes.
• Loaded import dwell is at 3.6 days at Barbour's Cut and 3.4 days at Bayport.

Oakland:

• Average wait time of up to 4 days at Oakland Int’l Container Terminal (OICT) and 1 day at TraPac.
• Average import deliveries can take up to 5.9 days at TraPac and 3.2 days at OICT.
• Average gate turn times are 31 / 51 minutes for OICT and TraPac respectively.
• OICT will be closed both shifts on 4/15 due to pending blockade actions.
• Hoot shifts are being worked to help alleviate the backlog of vessels waiting for berthing.

Seattle-Tacoma:

• No waiting time at Husky and 4 days at WUT at Tacoma.
• 2 days waiting time in Seattle.
• Import deliveries are 2.7 days at Husky – due to EB/WB railcar imbalance, 2.4 days at Washington United Terminal, and 1-3 days at T18.
• The average gate turn times are 34 minutes for T18, 37 minutes for Washington United Terminal, and 59 minutes for HUSKY.
• Terminal 18 will be closed on April 12, 19 and 26, 2024.

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 2.8 days, on-dock rail dwell is 3.7 days, and import units on the street are averaging at 4.1 / 5.2 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 23 / 64 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal.

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, 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.