Freight market update - 19 September 2024

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• Global shipping lines have announced significant changes ahead of February's alliance reshuffling.

• MSC, leaving its 2M agreement with Maersk, will largely run standalone services, operating five East-West trades with 34 loops, offering routes via the Suez Canal and Cape of Good Hope.

• A potential dockworker strike on October 1 is approaching, which could impact major U.S. East and Gulf Coast ports.

• Operations at major East and Gulf Coast ports will halt, with ships anchored offshore and Container Freight Station (CFS) facilities facing backlogs.

• Warehouses and transportation hubs will experience delays, but these would likely be manageable in the short term.

• In the first half of 2024, Portugal’s port of Sines, Spain’s ports of Valencia and Barcelona, France’s HAROPA complex, Germany’s Bremerhaven port, Italy’s port of Gioia Tauro, and Poland’s port of Gdansk saw significant increases in container volumes compared to the previous year, according to PortEconomics.

• Belgium’s Antwerp-Bruges saw a 4.1% growth, reducing the gap with Rotterdam, which grew by 2.2%.

• Tropical storm BEBINCA is anticipated to further impact Eastern China in week 38, exacerbating the situation.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• A potential dockworker strike on October 1 is approaching, which could impact major U.S. East and Gulf Coast ports.
• Shippers and forwarders are looking into alternative routes and creating contingency plans to reduce supply chain disruptions.
• Planning in advance is essential to lessen the potential impact.
• Major ports along the East and Gulf Coasts, including key hubs like New York/New Jersey, Savannah, Charleston, Houston, Miami, and Port Everglades, would be affected.
• Significant disruption to supply chains, especially for time-sensitive imports such as automotive, retail, and pharmaceuticals, leading to higher costs and delays.
• Operations at major East and Gulf Coast ports will halt, with ships anchored offshore and Container Freight Station (CFS) facilities facing backlogs. Warehouses and transportation hubs will experience delays, but these would likely be manageable in the short term.
• Severe congestion at ports as CFS facilities struggle to handle the backlog. Warehouses will be overwhelmed, and transportation networks like trucking and rail will be heavily strained, resulting in higher costs and extended delays.
• Ship goods earlier to avoid potential delays.
• The U.S. government may intervene and delay the strike for 80 days.
• Consider rerouting shipments through West Coast ports instead of the East.
• Use Canadian ports to access Midwest destinations.
• Airfreight may be an option for time-sensitive shipments.
• Several ports in China, Taiwan, and Hong Kong have been affected by super typhoon YAGI, leading to closures of up to 64 hours and significant berth congestion.
• Tropical storm BEBINCA is anticipated to further impact Eastern China in week 38, exacerbating the situation.
• Ports in Bangladesh (BDCGP) are experiencing a 3-4 day wait due to heavy congestion.
• Manila North and South (PHMNL) are facing delays of 2-3+ days.
• South Korea (BNCT) is expected to see increased delays exceeding 2 days in week 38.
• Singapore (SGSIN) is managing moderate congestion, with high activity anticipated in week 38.
• Ports in South Korea (KRICH, KRKAN, KRPUS) will close from September 17 at 0800 to September 18 at 0800 for the Korean Thanksgiving holiday.
• This closure is likely to result in increased congestion and delays upon reopening, particularly at BNCT, which is already experiencing heavy congestion.

Turkey → North America

• Global shipping lines have announced significant changes ahead of February's alliance reshuffling.
• Hapag-Lloyd's departure from THE Alliance has led to the creation of the 'Premier Alliance,' which includes Ocean Network Express (ONE), HMM, and Yang Ming.
• MSC, leaving its 2M agreement with Maersk, will largely run standalone services, operating five East-West trades with 34 loops, offering routes via the Suez Canal and Cape of Good Hope.
• MSC will collaborate with ZIM for Asia to U.S. East and Gulf Coast services and with Premier Alliance for Asia to Europe routes, benefiting shippers with increased options and improved service, particularly in Europe.
• The Ocean Alliance, comprising CMA CGM, COSCO, Evergreen, and OOCL, will extend its vessel-sharing agreement until March 2032.
• Maersk will establish the Gemini Cooperation with Hapag-Lloyd and will reveal full network plans next month, targeting 90% schedule reliability.

North America → Turkey

• In the first half of 2024, Portugal’s port of Sines, Spain’s ports of Valencia and Barcelona, France’s HAROPA complex, Germany’s Bremerhaven port, Italy’s port of Gioia Tauro, and Poland’s port of Gdansk saw significant increases in container volumes compared to the previous year, according to PortEconomics.
• This growth contrasts with the overall decline in port traffic observed in 2023, as reported by PortEconomics member Theo Notteboom, who compiled the report.
• Greece’s Port of Piraeus faced a sharp decline due to decreased traffic through the Suez Canal.
• Belgium’s Antwerp-Bruges saw a 4.1% growth, reducing the gap with Rotterdam, which grew by 2.2%.
• The Benelux ports are expected to retain their positions as the largest container ports in the EU by the end of 2024.
• Germany’s port of Hamburg remained stable with a slight -0.3% decline but continues to hold a spot in the top three.
• Northern Europe’s dominance in container shipping is expected to remain unchallenged for the foreseeable future.
• Valencia is projected to move up to fourth place, while Piraeus may drop to seventh, with Barcelona closely following. HAROPA is anticipated to climb two positions to tenth place.
• In a LinkedIn post, Notteboom attributed the growth in the Western Mediterranean and Atlantic coast to the “effects of the Red Sea crisis and the associated shipping network modifications” during H1 2024.

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:

• 1 day waiting time is expected for a berth at Maher Terminals LLC and 2 days at APM Terminals.
• Waiting time of up to 4 days is expected at Port Liberty Terminal Bayonne.
• Average gate turn times are 44 minutes for single transactions and 76 minutes for double transactions.
• Truck line port congestion continues.
• We are seeing some summer labor shortages so the number of gangs available for certain shifts may be reduced.
• One waterside stack at PLB Bayonne is out of service until next week. There is minimal impact on vessel operations expected.

Norfolk:

• Currently, most vessels berth on arrival.
• Bigger vessels wait approximately 2.5 days for a berth.
• Average gate turn times are 40 minutes for single transactions and 59 minutes for double transactions.

Charleston Terminal:

• 3 days waiting time for Wando Welch Terminal and 0.5 days for North Charleston Terminal.
• Average truck turn times are 17 minutes at Wando Welch Terminal and 24 minutes at North Charleston Terminal.

Savannah:

• The waiting time for a vessel berth at the terminal is up to 3 days, depending on the vessel's size.
• Average gate turn times are 36 minutes for single transactions and 59 minutes for double transactions.
• Import dwell time is 3 days.
• Export dwell time is 4.4 days.

Houston:

• There is no waiting time for vessel berthing at Barbours Cut Terminal and 1 day at Bayport Container Terminal.
• Average gate turn times at Barbours Cut Container Terminal are 37 minutes for single transactions and 41 minutes for double transactions.
• Average gate turn times at Bayport Container Terminal are 35 minutes for single transactions and 36 minutes for double transactions.
• Loaded import dwell is 3.8 days at Barbours Cut and 3.6 days at Bayport.

Oakland:

• No waiting time at Oakland Int’l Container Terminal (OICT) and at TraPac.
• Average import deliveries can take up to 5 days at TraPac and 3.5 days at OICT.
• Average gate turn times are 96 minutes at OICT and 93 minutes at TraPac.
• Port of Oakland has started a bollard and fender replacement project at OICT.
• It is starting with Berth 55 through Berth 59.
• The project is expected to last into Q1 2025.
• Berth 55 and 56 are complete, and have moved to Berth 57.

Seattle-Tacoma:

• There are no vessels at anchor/adrift awaiting berth as of September 12, 2024.
• Extended waiting periods are due to high volumes of Import Rail along with lack of rail cars.
• Import rail dwell times are 5.2 days at Husky Terminal.
• Import rail dwell times are 6.9 days at Washington United Terminal.
• Import rail dwell times are 5-7 days at Terminal 18 (T18).
• Average gate turn times are 50 minutes at T18.
• Average gate turn times are 23.7 minutes at Washington United Terminal.
• Average gate turn times are 105 minutes at Husky Terminal.
• T18 will be closed on September 20, 2024.

Los Angeles/Long Beach:

• Port of Los Angeles dwell time for local import cargo is 3.2 days.
• On-dock rail dwell time at Port of Los Angeles is 7.9 days.
• Import units on the street at Port of Los Angeles are averaging 3.9 days for 20 ft containers and 6.1 days for 40+ ft containers.
• Average terminal gate turn time at Port of Long Beach is between 25 and 82 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal except:

• Minneapolis / St, Paul – Constrained on 40’ chassis.
• Chicago – Constrained on 20’ and 40’ chassis.
• Columbus – Constrained on 40’ chassis.
• Memphis – Constrained on 20’ and 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.