Freight market update - 26 September 2024

Greetings!

Our objective is to make your shipping experience easier by offering you the latest and most informative details and insights regarding the freight market. We aim to provide accurate and relevant content that brings benefits to your business.

We highly value your feedback as we continuously strive to improve the quality of our weekly market updates. We value your thoughts on our current content and encourage you to suggest specific topics that you would like us to cover in more depth.

We wish to create the most informative newsletter possible. We appreciate your continued readership and subscription, and we thank you for taking the time to provide us with your valuable feedback, which will help us enhance our future performance.

• If the International Longshoremen’s Association (ILA) halts operations at all East and Gulf Coast ports, the effects on global trade could be far-reaching.

• This would be the first ILA strike since 1977, and its consequences may impact more than just the U.S. East Coast.

• Space remains limited ahead of the Chinese National Holiday (Oct 1-7).

• Last week’s typhoon caused flight cancellations and reduced payloads, creating a backlog at PVG.

• The impending ILA strike on October 1st presents a major risk to East and Gulf Coast ports, with carriers considering potential surcharges to offset rerouting and additional costs.

• Rates from India and Bangladesh have decreased slightly, but capacity constraints persist due to congestion at transshipment hubs like Singapore and Colombo.

• A small pre-Christmas peak is anticipated from India, with the main peak season starting in January, aligning with the grape harvest.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Rates on the Asia-Europe trade lane have been dropping in September, as the expected pre-Golden Week surge did not happen.
• Service issues continue to affect schedules, with cargo being rolled from vessels, causing delays across various carriers who have taken on more cargo than available space.
• Carriers are either rolling the cargo to the next vessel or loading it and then unloading it at the first transshipment hub to be rerouted onto less full services.
• Space remains limited ahead of the Chinese National Holiday (Oct 1-7).
• Last week’s typhoon caused flight cancellations and reduced payloads, creating a backlog at PVG.
• Rates have risen due to the uncertainty around flight availability.
• It is advised to book space at least one week in advance.
• Rates from India and Bangladesh have decreased slightly, but capacity constraints persist due to congestion at transshipment hubs like Singapore and Colombo.
• Although space is gradually improving, carriers are still clearing a backlog of bookings, resulting in a slow recovery process.
• A small pre-Christmas peak is anticipated from India, with the main peak season starting in January, aligning with the grape harvest.
• Political unrest and flooding in Bangladesh continue to disrupt logistics, particularly at Chittagong, where inland container depots are overwhelmed.
• Congestion at key transshipment ports, including Singapore (SGSIN), Port Klang (MYPKL), and Colombo (LKCMB), is leading to backlogs and delays.
• Early bookings are advised as space remains limited, with further delays expected due to ongoing congestion and weather-related disruptions.

Turkey → North America

• Rates on the Transatlantic route from North Europe to the U.S. East Coast have increased, with vessel utilisation remaining high on this trade lane.
• Carriers are prioritising quick vessel discharge at U.S. East Coast ports in preparation for the potential ILA strike.
• U.S. East Coast ports have extended gate hours to accelerate cargo flows in anticipation of the strike.
• Despite these measures, disruption is expected if the strike goes ahead, potentially leading to cargo delays, rerouting, and emergency surcharges.
• Operations at approximately three dozen U.S. ports are in limbo as a union strike approaches.
• The potential disruption, affecting the East Coast to the Gulf, from Searsport, Maine, to Brownsville, Texas, could have disastrous consequences for both domestic and foreign supply chains across various sectors.
• This would be the first coast-wide dockworker strike on American shores since 1977, coinciding with about 45,000 members of the International Longshoremen’s Association (ILA) seeking a new agreement with the U.S. Maritime Alliance before their contract expires on Monday (Sept. 30).
• A labor strike could disrupt the global supply chain, resulting in delays, shortages, and rising costs during a time already burdened by inflationary pressures and economic uncertainties.
• The ports staffed by ILA members, including those in New York, New Jersey, and Savannah, Georgia, are crucial for U.S. import and export activities, handling 41% of the United States’ port volume, according to the Financial Times.
• “A strike at this point in time would have a devastating impact on the economy…,” cautioned a coalition of 177 trade groups in a letter to President Joe Biden on Tuesday (Sept. 17).
• Shippers and logistics providers have begun implementing cargo diversions and contingency plans, including rerouting volumes to West Coast ports, although these alternatives come with increased costs and additional challenges.

North America → Turkey

• What are the latest updates regarding the potential ILA strike?
• If the ILA halts operations at all East and Gulf Coast ports, the effects on global trade could be far-reaching.
• Key industry players, including major shipping lines, are already bracing for major disruptions.
• Cargo stranded in these regions could lead to significant delays and higher costs, as Canadian and Mexican ports may not have enough capacity to handle U.S. overflow.
• A one-week shutdown from the strike is projected to take 4 to 6 weeks for the industry to fully recover.
• Rates for the second half of September have dropped.
• The impending ILA strike on October 1st presents a major risk to East and Gulf Coast ports, with carriers considering potential surcharges to offset rerouting and additional costs.

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 42 minutes for single transactions and 66 minutes for double transactions.
• Truck line congestion continues at Port Elizabeth / Port Newark roadways.
• APM Terminal will be open on September 21, 2024, and September 28, 2024, to help reduce congestion.
• It will also help facilitate container deliveries prior to October 1, 2024.

Norfolk:

• Currently, most vessels berth on arrival.
• Bigger vessels wait approximately 2 days for a berth.
• Average gate turn times are 34 minutes for single transactions and 48 minutes for double transactions.

Charleston Terminal:

• 2 days waiting time for Wando Welch Terminal and 0.5 days for North Charleston Terminal.
• Average truck turn times are 19 minutes at Wando Welch Terminal and 22 minutes at North Charleston Terminal.
• Dock construction at Wando Welch terminal is reducing berth space 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.

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 33 minutes for single transactions and 55 minutes for double transactions.
• Import dwell time is 4.2 days.

Houston:

• There is 1 day waiting time for vessel berthing at Barbours Cut Terminal and at Bayport Container Terminal.
• Average gate turn times at Barbours Cut Container Terminal are 33 minutes for single transactions and 51 minutes for double transactions.
• Average gate turn times at Bayport Container Terminal are 29 minutes for single transactions and 47 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 91 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:

• Up to 8 days waiting time at Husky and 1 day at Washington United terminal at Tacoma.
• 1 day waiting time in Seattle.
• Extended waiting periods are due to high volumes of Import Rail along with lack of rail cars.
• Import rail dwell times are 4.7 days at Husky Terminal.
• Import rail dwell times are 7.5 days at Washington United Terminal.
• Import rail dwell times are 5-7 days at Terminal 18 (T18).
• Rail Car supply is in severe deficit in Tacoma and Seattle. Causing higher import rail dwell times.
• Average gate turn times are 36 minutes at T18.
• Average gate turn times are 27 minutes at Washington United Terminal.
• Average gate turn times are 171 minutes at Husky Terminal.
• Heavy import delivery and peel pile caused several choke points in the yard.
• Husky will have a Saturday gate on September 21 and 28, 2024.
• Due to the current vessel schedule, on September 26 and 27 - WUT will have minimal import activity.
• T18 will be closed on September 27, 2024.

Los Angeles/Long Beach:

• Port of Los Angeles dwell time for local import cargo is 3.4 days.
• On-dock rail dwell time at Port of Los Angeles is 8.5 days.
• Import units on the street at Port of Los Angeles are averaging 4.2 days for 20 ft containers and 5.9 days for 40+ ft containers.
• Average terminal gate turn time at Port of Long Beach is between 21 and 67 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal except:

• Chicago – Constrained on 40’ chassis.
• Columbus – Deficit on 40’ chassis.
• Louisville - Deficit 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.