Freight market update - 26 December 2024

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• The U.S. East Coast could see major disruption in early 2025.

• The International Longshoremen’s Association (ILA) signals a likely strike amid unresolved contract negotiations.

• Key terminals like Manila and Shanghai's YS1 are grappling with severe congestion, leading to delays of 2-3 days for vessels.

• Westport anticipates increased operational pressure with 26-28 vessel calls expected next week, potentially complicating berth management.

• Global economic growth in 2024 is projected at 2.7%.

• U.S. growth is forecast at 2.7%, fueled by strong consumer spending.

• The Network of the Future for East-West trades, including Asia-to-North America routes, will go live on February 1, 2025.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• TP Trade Growth: Container fleet capacity on the Transpacific (TP) trade has increased by 4.2% year-over-year.
• MSC will launch a new standalone East-West network called "Mustang" in 2025.
• This network will connect key hubs like Xiamen, Ningbo, Shanghai, Busan, Seattle, Vancouver, and Portland.
• Maersk and HPL have announced an additional TP7/WC5 loop, expanding service coverage to include Busan, Ningbo, Los Angeles (LA), and Yokohama.
• Freight rates have stabilized after a period of fluctuation. This stability is attributed to increased carrier allocations.
• The recent agreement on wages and pensions for port workers in India has averted the threat of strikes.
• This resolution has eased concerns about potential disruptions to cargo flow from major Indian ports.   
• Transshipment delays continue to occur at the Port of Colombo due to a combination of adverse weather conditions and ongoing congestion.
• Carriers are preparing for a surge in demand in early January as the traditional peak season commences.
• Shippers are advised to confirm their bookings well in advance to secure necessary space and avoid potential constraints during the peak season.
• Dalian experienced a 23-hour closure due to traffic control, while Qingdao faced an 8-hour closure due to adverse weather conditions.
• Key terminals like Manila and Shanghai's YS1 are grappling with severe congestion, leading to delays of 2-3 days for vessels.
• Westport anticipates increased operational pressure with 26-28 vessel calls expected next week, potentially complicating berth management.
• Pusan's BNCT is experiencing delays from previous ports, causing vessel bunching and moderate congestion, which is expected to worsen.
• Stable Performance: Singapore maintains strong operational efficiency with minimal delays, while Ningbo reports manageable berth congestion.
• These disruptions underscore the vulnerability of global supply chains to unforeseen events and the ongoing challenges faced by ports in managing the flow of goods efficiently.
• In a US$115.8 million (€110 million) sale-and-leaseback agreement, Singapore's CapitaLand Ascendas REIT (CLAR) has agreed to purchase a logistics hub in the US from DHL USA.
• After settlement, the Whiteland site in southeast Indianapolis will be leased back to DHL USA until December 2035, with the possibility of two more five-year lease renewals.
• The manager plans to use a combination of internal resources, disposal proceeds, and/or existing lending facilities to finance the transaction, which is anticipated to close in the first quarter of next year.

Turkey → North America

• Maya Tumilowski is in charge of the automaker's internal trucking and haulaway businesses, FCAT and ATS, while Tammy Ruelland has taken Jon Schwartz's place as director of finished vehicle logistics in North America at Stellantis.
• Scott Thiele, who oversees emissions and commercial performance, is now in charge of the regional supply chain division. 
• Two essential members of Stellantis' North American logistics team, who work in crucial trucking fleet operations and vehicle logistics, have been promoted.
• Tammy Ruelland joined Stellantis North America earlier this autumn as director of finished vehicle logistics, where she was in charge of imports and exports, quality control, and all forms of transportation in the US, Mexico, and Canada.
• Jon Schwartz, who retired from Stellantis, was replaced by her.
• Global economic growth in 2024 is projected at 2.7%.
• U.S. growth is forecast at 2.7%, fueled by strong consumer spending.
• Rising savings rates in the U.S. pose a potential risk to consumer spending and growth.
• Euro-area growth is projected at 0.7%, hindered by volatile inflation and geopolitical tensions.
• Despite a Q3 rebound in retail sales, economic growth in Europe remains subdued.
• Germany narrowly avoided recession due to weak industrial output.
• China's economic growth is projected at 4.8%.
• Domestic demand in China faces challenges from the real estate sector and high savings rates.
• Recent government policies and expanding manufacturing activity are supporting China's growth.
• Exports continue to be a major driver of China's economic growth.

North America → Turkey

• The U.S. East Coast could see major disruption in early 2025.
• The International Longshoremen’s Association (ILA) signals a likely strike amid unresolved contract negotiations.
• Although discussions surrounding pay rises appeared settled in October, reports suggest critical points remain unresolved.
• At the heart of the dispute is a murky stance on automation, which has created ambiguity for negotiators, while amplifying concerns about the outdated U.S. infrastructure.
• The broader narrative suggests that infrastructure modernisation may also serve as a bargaining point.
• For shippers and carriers, the anticipated strike could disrupt flows through key East Coast gateways.
• Though as yet, signs of front-loading cargo are yet to appear.
• The Network of the Future for East-West trades, including Asia-to-North America routes, will go live on February 1, 2025.
• Significant investments in hub terminals over the past 4-5 years have facilitated the transition to a hub-and-spoke model.
• The hub-and-spoke model will enhance network resilience and operational capacity.
• The ambitious goal is to achieve 90% schedule reliability once the network is fully phased in.
• The network will ensure extensive port coverage.
• Collaboration with terminal partners will optimize speed and efficiency.
• The primary focus is on improving global shipping reliability.

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 project is now expected to finish at the end of Q4 2024.
• So far, berths 55, 56 and 57 are complete.
• The work has now 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 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.