Ocean Rates and Trends for US Market | June 14, 2023

From the Editor’s Desk

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Key takeaways for the US

• The last voyage from New York to Izmit has a cutoff of July 3rd in New York.
• After this Istanbul can be offered as the nearest POD for the OOCL carrier..
• US truck loadings increased in April following a dip in March, though growth remained roughly flat compared to the prior year.
• Schneider released its 2022 Corporate Responsibility Report.
• IATA announced the need for a global regulatory framework to drive increased investment in sustainable fuel production.
• US West Coast Port negotiations have still not been resolved as they approach the one-year mark.
• Strikes and wage disputes continue to impact airports across Europe.

Read on for more in-depth updates.

Ocean Freight Market Updates 

Asia → North America

US/CA

Transpacific Trends and Market Updates

• The last voyage from New York to Izmit has a cutoff of July 3rd in NYC. After this Istanbul can be offered as the nearest POD for the OOCL carrier.
• US truck loadings increased in April following a dip in March, though growth remained roughly flat compared to the prior year.
• Schneider released its 2022 Corporate Responsibility Report.
• This highlights how the company is fulfilling its commitments to reduce its environmental impact, and advance diversity, equality, and inclusion (DEI) throughout the company.
• It also aims to reinvest in communities and conduct operations responsibly.
• Schneider is reimagining innovation in the transportation industry with the opening of The Grove.
• This innovation center aims to unleash creativity and potential.
• All this while providing a dedicated collaboration space for Schneider associates as well as customers.
• IATA announced the need for a global regulatory framework to drive increased investment in sustainable fuel production.
• US West Coast Port negotiations have still not been resolved as they approach the one-year mark.
• Strikes and wage disputes continue to impact airports across Europe.
• A severe dry season has impacted ship volume able to move through the Panama Canal.
• Middle Eastern Airlines continue to invest in new routing and services, increasing connectivity into and out of the region.

Conclusions

Rates - The rates will remain soft on most origin-destination combinations.

Space - Space open, no issues with equipment. 

Recommendations - We recommend blank sailings to continue. Book at least two weeks before the date your vessel gets ready to depart.

Turkey → North America

• Two new bills have been introduced in the US to address emissions in shipping.
• The International Maritime Pollution Accountability Act proposes a fee on larger vessels unloading at US ports.
• This is to reduce pollution in the surrounding area.
• The Clean Shipping Act of 2023 aims to cut GHG emissions by 45% by 2030.
• It aims to establish a baseline level of emissions starting next year.

Conclusions

Rates - The rates will remain soft on most origin-destination combinations.

Space for capacity - No capacity issues or issues with space.

Space for equipment - No issues with equipment.

North America → Turkey

• The International Longshore and Warehouse Union (ILWU) took disruptive work action by shutting down cargo operations at the Port of Seattle.
• This was during contract negotiations with the Pacific Maritime Association (PMA).
• This action is expected to cause delays in the upcoming days.
• Previous industrial action by ILWU last week resulted in a backlog at the Port of LA and Long Beach.
• These had recently been cleared.

Conclusions

Rates - Stable rates over the last week.

Space for capacity - No major capacity or space issue.

Space for equipment - Equipment issues have started owing to low levels of import.

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:

• No waiting time is expected for a berth at Global Container Terminals Bayonne and APM Terminals.
• No more waiting time at Maher Terminals LLC.
• No empty shut-out situations at any of the terminals this week.
• Average gate turn times: 46 minutes for single transactions, and 76 minutes for double transactions.
• APM Terminals will remain open on Saturday, June 10, 2023.

Norfolk:

• Most vessels are expected to berth on arrival or within half a day, occasionally experiencing 1.5 day delays for berthing.
• Average gate turn times: 33 minutes for single transactions, and 44 minutes for double transactions.
• Two cranes down at Norfolk Int'l Terminal, no negative impact is expected this week.

Charleston Terminal:

• 1 day waiting time for vessel berthing at Wando Welch Terminal.
• No waiting time expected at North Charleston Terminal.
• Average truck turn times: 21 minutes at Wando Welch Terminal, and 20 minutes at North Charleston Terminal.
• Chassis pools are available at all SCPA locations.
• Sunday gates by appointment only.

Savannah:

• Waiting time for vessel berth at the terminal is up to 3.5 days, depending on the size of the vessel.
• Average gate turn times are 35 / 54 minutes for single and double transactions respectively.

Houston:

• Barbours Cut Terminal’s waiting time for vessel berthing is up to 1 day.
• Saturday gates at Bayport and Barbours Cut Container Terminals discontinued as of May 1, 2023.
• The average gate turn time is 37 minutes.

Oakland:

• Average wait time of up to 5 days at Oakland Int’l Container Terminal (OICT) and up to 2 days at TraPac.
• Average import deliveries can take up to 5.6 / 4 days at TraPac and OICT respectively.
• As yard space becomes available, boxes from TraPac will move to accessible areas for delivering.
• Average gate turn times are 64 / 52 minutes for OICT and TraPac respectively.

Seattle-Tacoma:

• There are no vessel berthing delays in Tacoma.
• However, in case of delays at departure ports overseas, delays of up to 5 days are expected.
• Import deliveries are 2 days at HUSKY – due to EB/WB railcar imbalance, 0-3 days at Washington United Terminal, and 0-3 days at T18.
• Availability of rail cars in Union Pacific Rail and BNSF Rail continues to fluctuate weekly.
• Average gate turn times are 33 / 42 / 46 minutes for T18, Washington United Terminal, and HUSKY respectively.
• T18 Terminal will be closed on June 9, 16, and 19, 2023.
• Washington United Terminal will be closed on June 19, 2023.
• Husky will be closed on June 19, 2023.

Los Angeles/Long Beach:

• All terminal gates are running as published and in line with the Pier Pass program.
• Port of Los Angeles dwell times for local import cargo is 3.3 days, on-dock rail dwell is 4.7 days, and import units on the street are averaging at 5 / 6.8 days for 20 ft and 40+ ft containers respectively.
• Port of Long Beach dwell times for local imports are stable, and the average terminal gate turn time is between 26-68 minutes, depending on the terminal.

Chassis Pools:

• All pools are operating as normal except:

1. Minneapolis / St. Paul – Constrained on a 20' chassis
2. St. Louis - 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

Final Thoughts

In light of the latest updates and trends, it is evident that the market is currently in the course of demonstrating 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.

Conduct thorough research on ports that offer available space and suitable equipment despite the ongoing conditions. By doing so, you can minimize complications, facilitate shipments, and maximize efficiency.

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.