Freight market update - 6 December 2024

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• Donald Trump's return to the White House has raised concerns about his proposed trade policies, which include sweeping tariffs targeting specific regions and goods.

• A market study by Morgan Stanley found that 70% of U.S. importers indicated they would not change their supply chain strategies in the coming months.

• Blank sailings are significantly impacting capacity deployment, with a week-on-week reduction of 16% to 27% in the second half of December.

• Mundra Port continues to face delays of up to 48 hours due to congestion.

• Chattogram Port saw a 10% increase in container handling from August to October compared to last year, clearing backlogs caused by earlier political unrest.

• China’s logistics sector grew steadily in November 2024, with the logistics index reaching 52.8%, up 0.2 points from October.

• Social logistics is projected to reach 360 trillion yuan (~$50.7 trillion) this year, supported by government plans.

• The Chinese government recently released a plan to build a modern commercial circulation system integrating domestic and international markets, urban and rural areas, and production with sales.

• The new edition of the September Global Shipping Report, issued yesterday by Waterloo, Ontario-based Descartes, highlighted another strong month of elevated U.S.-bound import levels.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Space is relatively available as demand weakens.
• Some carriers anticipate an early peak season in January, driven by pre-loading ahead of the traditional end-of-January peak.
• Early bookings are strongly recommended.
• Mundra Port continues to face delays of up to 48 hours due to congestion.
• A general shortage of 20ft containers persists in Delhi ICDs, while Nhava Sheva faces inventory challenges.
• Chattogram Port saw a 10% increase in container handling from August to October compared to last year, clearing backlogs caused by earlier political unrest.
• Continued stability at Chattogram Port could sustain this growth.
• Congestion at Colombo remains a critical issue.
• Bad weather in North Europe PODs is also causing schedule disruptions.
• China’s logistics sector grew steadily in November 2024, with the logistics index reaching 52.8%, up 0.2 points from October.
• Postal delivery led with a 70.6% business volume index, while the central region saw the highest regional performance at 53.7%.
• Social logistics is projected to reach 360 trillion yuan (~$50.7 trillion) this year, supported by government plans.
• The logistics sector’s growth in November 2024 was driven by increasing demand, taking the index to its highest level this year, according to an industry organization.
• The index released by the China Federation of Logistics and Purchasing showed the country’s logistics market at 52.8% in November, a slight rise of 0.2 percentage points from October 2024.
• The business volume index was 70.6% for postal express delivery, 56.2% for air transport, and 55.8% for railway transport.
• Regionally, the business volume index in the central region was higher than the national average at 53.7%, while the western and eastern regions exceeded 52%.
• China’s logistics sector has seen steady growth in recent years. Social logistics is expected to reach approximately 360 trillion yuan (~$50.7 trillion) this year.
• The Chinese government recently released a plan to build a modern commercial circulation system integrating domestic and international markets, urban and rural areas, and production with sales.
• The plan aims to be completed by 2027, with efforts to improve logistics and distribution systems across the country and promote new business models like livestream e-commerce.
• The government also plans to accelerate the growth of digital supply chain service platforms.

Turkey → North America

• Container freight rates decreased in the first half of December, despite healthy volumes being recorded from Asia.
• Cargo front-loading ahead of the proposed U.S. tariffs contributed to this trend.
• The West Coast has experienced the steepest rate declines, as capacity continues to outpace demand growth.
• A fresh round of rate hikes is expected in December, supported by increased volumes ahead of tariff changes and the year-end shipping rush.
• Blank sailings are scheduled for Weeks 47–52, primarily affecting US Gulf and US East Coast (USEC) routes.
• These cancellations predominantly impact departures originating from North Europe and the East Mediterranean.
• The new edition of the September Global Shipping Report, issued yesterday by Waterloo, Ontario-based Descartes, highlighted another strong month of elevated U.S.-bound import levels.
• This is the 39th edition of the Global Shipping Report, following its debut in August 2021.
• Descartes reported that U.S.-bound container import volumes reached 2,494,635 TEU (Twenty-Foot Equivalent Units), marking an 8.1% annual gain.
• This represents the fourth consecutive month that U.S.-bound container import volumes have exceeded the 2.4 million TEU mark, a threshold historically known to strain U.S. maritime logistics.

North America → Turkey

• The U.S. election and supply chains are currently in focus.
• Donald Trump's return to the White House has raised concerns about his proposed trade policies, which include sweeping tariffs targeting specific regions and goods.
• Trump recently announced plans to impose 20–25% tariffs on goods from Mexico and Canada, and an additional 10% on goods from China, citing drug trafficking as the official reason.
• However, there are still questions about the timing of these tariffs, as negotiations, especially with China, could delay their implementation.
• During Trump’s first term, there were three waves of tariff increases on Chinese products, with implementation delayed twice.
• A market study by Morgan Stanley found that 70% of U.S. importers indicated they would not change their supply chain strategies in the coming months.
• Rate increases announced in early December were partially absorbed by market dynamics, stabilising slightly above November levels.
• Blank sailings continue to constrain capacity, particularly in the middle of the month.
• Blank sailings are significantly impacting capacity deployment, with a week-on-week reduction of 16% to 27% in the second half of December.

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:

• 0.5 days waiting time expected for APMT, no waiting time at Maher Terminals, and up to 4 days at Port Liberty Terminal Bayonne.
• Average gate turn times are 39 / 69 minutes for single and double transactions respectively.
• Crane delivery at Port Liberty Terminal in Bayonne is complete.
• Berths 1 and 2 are now available for vessels.

Norfolk:

• Currently, most vessels berth on arrival.
• Bigger vessels wait approximately 3 days for a berth.
• Average gate turn times are 32 minutes for single transactions and 49 minutes for double transactions.
• One crane is out of service and is expected to be back working in week 49.
• Terminal has opened ERD back to 7 days due to lower volumes.

Charleston Terminal:

• 1.5 days 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 20 minutes at North Charleston Terminal.
• Average truck turn time at Leatherman is 20 minutes.

Savannah:

• The average waiting time for vessel berth at the terminal is 1.5 days for class 1 vessels and 2.8 days for class 2.
• Average gate turn times are 32 minutes for single transactions and 50 minutes for double transactions.
• Import dwell time is 2.6 days.
• Export dwell time is 6.2 days.
• Rail dwell time is 1.3 days.

Houston:

• There is no 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 51 minutes for double transactions.
• Average gate turn times at Bayport Container Terminal are 40 minutes for single transactions and 61 minutes for double transactions.
• Loaded import dwell is 3.5 days at Barbours Cut and 3.4 days at Bayport.

Oakland:

• No waiting time at OICT and one day waiting time 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 78 minutes at OICT and 100 minutes at TraPac.
• All terminals will be closed on November 28, 2024.

Seattle-Tacoma:

• No waiting time at Husky and Washington United terminal at Tacoma.
• 0.5 days waiting time in Seattle.
• Import rail dwell are 4 days at Husky, 1 day at Washington United Terminal, and 1 to 3 days at T18.
• The average gate turn times are as follows: 34 minutes for T18, 25 minutes for Washington United Terminal, and 57 minutes for Husky.
• T18 will be closed on Dec 6, 2024.

Los Angeles/Long Beach:

• Port of Los Angeles dwell time for local import cargo is 3.1 days.
• On-dock rail dwell time at Port of Los Angeles is 5.2 days.
• Import units on the street at Port of Los Angeles are averaging 4.2 days for 20 ft containers and 6.6 days for 40+ ft containers.
• Port of Long Beach dwell times for local imports are starting to go up to 4-8 days.
• The average terminal gate turn time is around 25-79 minutes, based on the terminal.

Chassis Pools

All pools are operating as normal except:

• Cleveland – Deficit on 20’ and 40’ chassis.
• Louisville – Deficit on 20’ and 40’ Chassis.
• Memphis – Constrained on 40’ Chassis.
• Pittsburgh – 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.