Freight market update - 3 October 2024

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• The potential strike by East and Gulf Coast port workers is already impacting U.S. trucking networks.

• Several major U.S. East and Gulf ports are implementing contingency plans ahead of a possible dockworkers' strike on October 1.

• The Port of Virginia has announced its shutdown schedule for September 30.

• In August alone, $194 billion worth of goods passed through U.S. ports, with over 50.6% handled by East and Gulf Coast ports.

• Multiple ports in China, South Korea, and Taiwan faced closures due to strong winds and Typhoon PULASAN.

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

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

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Multiple ports in China, South Korea, and Taiwan faced closures due to strong winds and Typhoon PULASAN.
• Major ports like Ningbo experienced delays of 1.5-2 days, while Qingdao saw delays of 1-1.5 days.
• Shanghai (WGQ) remains heavily congested, with delays exceeding 4 days.
• Some ports, including Singapore (PSA), Shenzhen (CNYTN), and South Korea (BNCT), are stabilizing and recovering from previous disruptions.
• Berth congestion in these ports has improved, with delays reducing to 0.5-1 day.
• Heavy congestion in Shanghai and Ningbo, along with delayed vessel arrivals, is expected to cause more complications in the coming days.
• The Golden Week holiday may further impact the overall situation.
• Ports where congestion has improved are reporting stable yard utilization rates between 75-84%, helping to manage traffic and reduce waiting times.
• The potential pause of operations by the International Longshoremen’s Association (ILA) at all East and Gulf Coast ports could have significant ripple effects on global trade.
• This would be the first ILA strike since 1977, and its impact could extend far beyond the U.S. East Coast.
• Industry stakeholders, including major shipping lines, are already preparing for major disruptions.
• Stranded shipments from East and Gulf Coast regions could lead to extensive backlogs and increased costs.
• Rates from India and Bangladesh have slightly decreased, but capacity constraints persist due to congestion at transshipment hubs like Singapore and Colombo.
• While space availability is gradually improving, carriers are still working through a backlog of bookings, slowing the recovery process.
• A small pre-Christmas peak is anticipated from India, before the main peak season starts in January, coinciding with the grape harvest.
• Political unrest and flooding in Bangladesh are causing further logistics disruptions, especially at Chittagong, where inland container depots are overwhelmed.
• Congestion continues across key transshipment ports, including Singapore (SGSIN), Port Klang (MYPKL), and Colombo (LKCMB), resulting in backlogs and delays.
• Shippers are advised to book early, as space remains tight and further delays are expected due to ongoing congestion and weather-related disruptions.

Turkey → North America

• Several major U.S. East and Gulf ports are implementing contingency plans ahead of a possible dockworkers' strike on October 1.
• Ports are extending terminal hours and setting deadlines for operations in preparation for the strike.
• The Port of Virginia has announced its shutdown schedule for September 30:

1. The last inbound train delivery is scheduled for 8 a.m.
2. All inbound truck gates will close at 12 p.m.
3. Cargo operations will stop by 1 p.m.
4. Vessels must sail, the last outbound train will depart, and motor carriers must leave the port.
5. All other container operations will stop by 6 p.m.
6. Reefer units will remain plugged in but will not be monitored.
7. No demurrage fees will be charged for containers during the strike.

• The Port of New Orleans has set similar deadlines and added Saturday hours on September 28:

1. Service operations will halt by noon on September 30.
2. Rail and gate operations will stop at 4 p.m.
3. Import reefer containers must be out by 4 p.m. unless otherwise approved.
4. Reefers will stay plugged in but will not be monitored during the strike.

• The Port of Jacksonville expects the strike to affect one-third of its business, while the remaining two-thirds will operate normally. Customers are advised to contact terminal operators for updated operating hours.
• The Alabama Port Authority is closely monitoring the situation at the Port of Mobile, as the container terminal is managed by APM Terminals.

North America → Turkey

• The potential strike by East and Gulf Coast port workers is already impacting U.S. trucking networks.
• Shippers are moving goods earlier to avoid delays, increasing demand on trucking and tightening capacity.
• If the strike lasts more than a few days, the impact will be more severe, affecting areas far inland from the ports.
• Drayage and trucking companies are taking proactive measures this week, retrieving containers from Eastern and Southern U.S. ports.
• Some containers are being sent to the West Coast via intermodal trains, while space is being sought to transload and store goods and containers.
• The strike could lead to a recovery in trucking prices, which have been low for most of 2024.
• Spot rates for truckloads have remained flat, while contract rates have stabilized.
• There are signs that rates could increase in 2025, but a prolonged strike might reset these expectations.
• Many businesses that developed contingency plans during the pandemic are now implementing them to avoid disruptions.
• If the strike lasts more than a week, it could take until the end of the year to catch up on backlogs.
• A prolonged strike will bury the ports in backlogged containers, and when they reopen, all shippers will demand their goods simultaneously, straining trucking capacity.
• A potential strike on the U.S. East and Gulf coasts could trigger significant global shipping delays.
• The disruption is expected to have consequences that may extend into 2025.
• Peter Sand, chief analyst at Xeneta, warned that ships en route to these ports could become stuck at U.S. East and Gulf Coast anchorages.
• Many vessels will be unable to reroute, with some possibly heading to Canadian or Mexican ports, while most will have to wait.
• The strike could delay the return of vessels to the Far East, disrupting shipping schedules into January 2025.
• A strike lasting just one week could affect schedules for ships leaving the Far East to the U.S. in late December and throughout January.
• In August alone, $194 billion worth of goods passed through U.S. ports, with over 50.6% handled by East and Gulf Coast ports.
• Maritime analyst John McCown noted that 16% of the global container fleet serves ports on these coasts.

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 48 minutes for single transactions and 71 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.

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 54 minutes for double transactions.
• Import dwell time is 4.3 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 34 minutes for single transactions and 53 minutes for double transactions.
• Average gate turn times at Bayport Container Terminal are 41 minutes for single transactions and 57 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 5.8 days at TraPac and 3.5 days at OICT.
• Average gate turn times are 80 minutes at OICT and 81 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 4.5 days at Husky Terminal.
• Import rail dwell times are 10.7 days at Washington United Terminal.
• Import rail dwell times are 5-7 days at Terminal 18 (T18).
• Average gate turn times are 40 minutes at T18.
• Average gate turn times are 28.6 minutes at Washington United Terminal.
• Average gate turn times are 71 minutes at Husky Terminal.
• Husky will be offering a Saturday gate on September 28, 2024.
• Hoot gates are offered 3-4 days a week.
• T18 will be closed on September 27, 2024 and October 4, 2024.

Los Angeles/Long Beach:

• Port of Los Angeles dwell time for local import cargo is 3.6 days.
• On-dock rail dwell time at Port of Los Angeles is 8.1 days.
• Import units on the street at Port of Los Angeles are averaging 3.7 days for 20 ft containers and 5.6 days for 40+ ft containers.
• Average terminal gate turn time at Port of Long Beach is between 22 and 77 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.