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Market Update

Freight market update - 21 February 2025

Beeontrade

·

February 2025

8 min read

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Freight market update - 21 February 2025

From the Editor’s Desk

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Key takeaways for the US

  • The Trump administration’s stance on the de minimis tariff exemption has added to U.S. trade dynamics.

  • The Suez Canal Authority is working to restore maritime traffic by improving security.

  • Plans include a 10 km canal extension to increase daily transits by 6-8 vessels.

  • MSC and Hapag-Lloyd will implement a PSS starting March 1 for shipments from North Europe to the U.S., Canada, and Mexico.

  • Maersk and Hapag-Lloyd’s Gemini Cooperation aims to enhance efficiency and exceed 90% schedule reliability.

  • Carrier schedule reliability has dropped by 10% year over year, according to Sea Intelligence.

  • The slack season has begun following China’s Golden Week holiday.

  • Major Chinese ports, including transshipment hubs like Shanghai and Ningbo, are experiencing significant congestion.

Read on for more in-depth updates.

Ocean Freight Market Updates

Asia → North America

US/CA

Transpacific Trends and Market Updates

  • Severe congestion is impacting major transshipment ports due to vessel diversions, adverse weather, and early peak season demand.
  • In Asia, ports like Shanghai, Ningbo, and Singapore are heavily congested.
  • In Latin America, key ports such as Santos and Manzanillo are facing similar delays.
  • In the West Mediterranean, ports like Valencia and Algeciras are experiencing significant disruptions.
  • In North America, the early peak season and cargo diversions are causing major congestion at Los Angeles and Long Beach ports.
  • Carrier schedule reliability has dropped by 10% year over year, according to Sea Intelligence.
  • Asia-Europe spot rates and Trans-Pacific rates are diverging.
  • The ILA strike ended during China’s Golden Week holiday.
  • USEC rates have dropped, while USWC rates remain steady.
  • Rates to North Europe and the Mediterranean are declining, though at a slower pace.
  • Carriers announced a General Rate Increase for early November, with bookings picking up compared to October.
  • Carriers aim to maintain rates ahead of 2025 contract negotiations.
  • Trade volumes need to increase to prevent further rate drops, as there are limited blank sailings in November.
  • The slack season has begun following China’s Golden Week holiday.
  • Carriers have not announced any winter deployments to reduce capacity.
  • Instead, November capacity has increased by 8% to both the West and East Coasts compared to October.
  • Demand remains steady as companies mitigate risks around the January 15 deadline for East and Gulf Coast labor negotiations.
  • Despite a slow decline, rates remain elevated compared to pre-pandemic levels.
  • Major Chinese ports, including transshipment hubs like Shanghai and Ningbo, are experiencing significant congestion.
  • Ports such as Shekou and Yantian are currently operating more smoothly.
  • Shipping routes between the Mediterranean and India are evolving with carriers optimizing schedules.
  • Carriers are reallocating vessels to meet high demand and ensure reliable services.
  • The introduction of new direct services and strategic port call adjustments is helping to mitigate congestion and delays.
  • Monthly rate increases to the Middle East are driven by service instability and tight vessel space.
  • Space from USEC and USGC ports to India and Middle East (ME) trades is significantly impacted by piracy risks in the Suez Canal.
  • Carriers are diverting via the Cape of Good Hope, leading to longer transit times and more blank sailings.
  • Services to Red Sea ports are mostly suspended.
  • The remaining services are causing congestion at West Med hubs.
  • Limited service to Persian Gulf ports continues, with Jebel Ali port omissions since January 2024.
  • Congestion at Southeast Asia and Jebel Ali ports is forcing carriers to use alternative hubs.
  • Alternative hubs like Abu Dhabi, Mundra, and Colombo are now also facing congestion.

Turkey → North America

  • MSC and Hapag-Lloyd will implement a PSS starting March 1 for shipments from North Europe to the U.S., Canada, and Mexico.
  • Maersk and Hapag-Lloyd’s Gemini Cooperation aims to enhance efficiency and exceed 90% schedule reliability.
  • The cooperation focuses on major terminal hubs to improve operations.
  • MSC’s independent operations provide more direct services and flexible capacity deployment.
  • Temporary irregularities, such as blank sailings and altered port calls, are expected during the network transition.
  • New vessel deliveries and increased capacity may soon outpace demand.
  • On October 3, 2024, after three days of strikes at USEC and USGC ports, the ILA and USMX reached a tentative wage agreement.
  • They extended the Master Contract until January 15, 2025, to continue negotiations on wage increases, benefits, and port automation limits.
  • The ILA is concerned about job security due to automation and is advocating for better health and retirement benefits.
  • This contract covers most of the U.S. East and Gulf Coast ports and aims for a new six-year agreement.
  • Since September, shipments via USWC have faced increased dwell times before loading.
  • Many shippers rerouted to the West Coast and rail to avoid East and Gulf Coast disruptions.
  • Significant relief in West Coast congestion is unlikely soon due to railcar shortages, causing containers to stack up at terminals.
  • Carriers are experiencing increased demand for services via the USWC.
  • This is due to extended transit times through the Cape of Good Hope and cargo diversions from the recent ILA strike on USEC and USGC ports.
  • Volumes at USWC ports have risen by approximately 16-20% compared to the same period in 2023.
  • Port congestion in Asia, USWC ports, and some USEC ports like Charleston is impacting schedule reliability.
  • This congestion may result in potential blank sailing weeks.
  • Major transshipment ports in Asia, including Busan, Shanghai, Ningbo, and Singapore, are experiencing delays of 14–21 days.
  • The delays are due to increased transshipment services.
  • Some carriers have switched to alternative transshipment hubs in Malaysia, India, and Colombo.
  • These alternative hubs are also facing congestion as a result.

North America → Turkey

  • The Trump administration’s stance on the de minimis tariff exemption has added to U.S. trade dynamics.
  • Initially suspended, this exemption allows goods valued under $800 to enter the U.S. tariff-free.
  • While the delay offers short-term relief, the administration has signaled a willingness to revisit the exemption.
  • This uncertainty leaves importers wary of potential sudden changes.
  • The potential full reopening of the Red Sea remains clouded in uncertainty.
  • Carriers are unlikely to reroute services through the Suez Canal until phases 2 and 3 of the ceasefire are confirmed.
  • Carriers have indicated that no immediate changes are expected before mid-year.
  • A gradual return is likely due to the three-month stabilization period for new routings.
  • Even if the Suez reopens, the shift may not significantly affect capacity immediately.
  • Currently, 7% of the global fleet remains delayed.
  • No major vessel scrapping has occurred in the past five years.
  • The Suez Canal Authority is working to restore maritime traffic by improving security.
  • Plans include a 10 km canal extension to increase daily transits by 6-8 vessels.
  • For now, shippers should expect continued reliance on Cape of Good Hope routes.
  • This is particularly relevant for backhaul trades.
  • Since December 15, 2023, most carriers have avoided the Suez Canal due to attacks on container vessels from Yemen.
  • In the Cape of Good Hope there is an average of 14 days to transit time.
  • Blank sailings and service changes are expected to continue.
  • It is estimated that 6–9% of global capacity is absorbed by this alternative route.

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, 0.5 days waiting time at Maher Terminals, and up to 4.5 days at Port Liberty Terminal Bayonne.
  • Average gate turn times are 47 / 76 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 day this week.
  • Average gate turn times are 30 minutes for single transactions and 47 minutes for double transactions.
  • One crane is out of service.
  • However, it is expected to be back working next month.

 

Charleston Terminal:

  • 2 days waiting time for Wando Welch Terminal and no waiting time for North Charleston Terminal.
  • Average truck turn times are 21 minutes at Wando Welch Terminal and 23 minutes at North Charleston Terminal.
  • Average truck turn time at Leatherman is 15 minutes.

 

Savannah:

  • The average waiting time for vessel berth at the terminal is 5 days for class 1 and class 2 vessels.
  • Fog continues to impact vessel operations from January 31st.
  • Average gate turn times are 34 minutes for single transactions and 52 minutes for double transactions.
  • Import dwell time is 3.3 days.
  • Rail dwell time is 1 day.

 

Houston:

  • Up to 2 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 32 minutes for single transactions and 53 minutes for double transactions.
  • Average gate turn times at Bayport Container Terminal are 30 minutes for single transactions and 49 minutes for double transactions.
  • Loaded import dwell is 3.9 days at Barbours Cut and 3.8 days at Bayport.

 

Oakland:

  • Average import deliveries can take up to 4.3 days at TraPac and 4 days at OICT.
  • TraPac has 1900 units out of stock and not available for pick up.
  • They are seeing a lot of appointments not being fully used.
  • Average gate turn times are 78 minutes at OICT and 71 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.
  • The project is expected to finish at the end of February 2025.
  • Berths 55, 56, 57 and 58 are now complete, work has moved to Berth 59.

Seattle-Tacoma:

  • 6 days waiting time at Husky and no waiting time at Washington United terminal at Tacoma.
  • No waiting time in Seattle.
  • Import rail dwell are 3.7 days at Husky, 1.0 days at Washington United Terminal, and 3 days at T18.
  • The average gate turn times are as follows: 32 minutes for T18, 24 minutes for Washington United Terminal, and 69 minutes for Husky.
  • Washington United Terminal and T18 will be closed on February 17, 2025, for President’s Day.

 

Los Angeles/Long Beach:

  • Port of Los Angeles dwell time for local import cargo is 3.1 days.
  • On-dock rail dwell is 6.7 days.
  • Import units on the street are averaging at 5.7 / 7.0 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 23-61 minutes, depending on the terminal.

 

Chassis Pools

All pools are operating as normal except:

  • Chicago – Constrained on 20’ and 40’ chassis.
  • Cleveland – 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

Range

Port

Vessels at Anchor

Vs Last Week

Waiting Time

Vs Last Week

PNW

Vancouver

0

-

6

+6

PNW

Seattle

0

-

0

-

PSW

Oakland

3

-

2

-

PSW

LA/LB

0

-

0

-

USEC

New York

0

-4

0

-4

USEC

Norfolk

5

+4

2

+1

USEC

Charleston

3

+2

2

-

USEC

Savannah

2

-4

2

-1

USGC

Miami

0

-

0

-

USGC

Houston

0

-

0

-

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.

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