Ocean Rates and Trends for US Market | June 28, 2023

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Key takeaways for the US

• Mundra Port in India is facing severe congestion due to disruptions caused by a cyclone along the western coast.
• It is expected to take at least a week to clear the backlog, causing difficulties for Mumbai-based freight forwarders in planning vessel loads.
• APM Terminals Pipavav, heavily affected by the cyclone disruption, has received a boost with a new weekly call addition from the CIX string.
• US and European companies are considering shifting manufacturing to countries like India and Southeast Asia to reduce reliance on China.
• China has 76 port terminals supporting large ships, while south and southeast Asian countries have only 31 combined.

Read on for more in-depth updates.

Ocean Freight Market Updates 

Asia → North America

US/CA

Transpacific Trends and Market Updates

• US and European companies are considering shifting manufacturing to countries like India and Southeast Asia to reduce reliance on China.
• However, these regions lack ports capable of accommodating mega-container ships crucial for global trade.
• China's significant investment in port infrastructure has enabled its dominance as the world's leading manufacturer.
• China has 76 port terminals supporting large ships, while south and southeast Asian countries have only 31 combined.
• Other Asian emerging markets would require substantial investment to catch up, posing challenges for businesses transitioning supply chains.
• Despite geopolitical tensions, there is increased interest in diversifying away from China.
• Flights from central China to Europe and the US have been canceled due to aircraft compliance checks (C-Checks) and the E-Commerce cargo season.
• Loading space has become limited and unstable due to hot weather, and special rates may apply to heavy dense cargo.
• Rates from Qingdao (TAO) to Europe and the US are stable, except for tight space at London Heathrow due to increased passenger luggage.
• Flight cancellations from TAO to the US on June 24th and 25th have caused tight space.
• The market from Guangzhou (CAN) to Europe and the US is currently unstable, and rates need to be checked with the carrier on a case-by-case basis.
• Mundra Port in India is facing severe congestion due to disruptions caused by a cyclone along the western coast.
• Export delays are occurring as carriers struggle to connect planned loads.
• Cargo gate-in time at the container terminals has been reduced to address vessel congestion.
• Container train services have also been impacted by the situation.
• It is expected to take at least a week to clear the backlog, causing difficulties for Mumbai-based freight forwarders in planning vessel loads.
• APM Terminals Pipavav, heavily affected by the cyclone disruption, has received a boost with a new weekly call addition from the CIX string, benefiting from the movement of various goods.

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

• Both houses of Congress in the US are considering legislation to restrict e-commerce imports by eliminating the exemption for shipments valued under $800 from duties and taxes.
• The proposed bills aim to address concerns regarding counterfeit products, consumer safety, and illegal trade, with a focus on China.
• Critics argue that the proposed changes may not effectively tackle these issues and could have unintended consequences for trade and global supply chains.
• Companies are increasingly exploring near-shoring as an alternative sourcing strategy beyond China.

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 Panama Canal Authority has imposed draft restrictions due to low water levels caused by climate change.
• The maximum authorized draft for the Neopanamax locks has been reduced to 44 feet, impacting cargo capacity and vessel operations.
• Shipping companies are adjusting their network planning and offering alternative routes, such as the Suez Canal, to mitigate delays and minimize disruptions in the supply chain due to limited capacity in the Panama Canal.
  
  

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: 43 minutes for single transactions, and 65 minutes for double transactions.

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: 27 minutes for single transactions, and 38 minutes for double transactions.
• One crane 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: 20 minutes at Wando Welch Terminal, and 19 minutes at North Charleston Terminal.

Savannah:

• Waiting time for vessel berth at the terminal is up to 2.5 days, depending on the size of the vessel.
• Negative tides are causing delays for deep draft vessels.
• Conditions are expected to go back to normal next week.
• Average gate turn times are 33 / 52 minutes for single and double transactions respectively.

Houston:

• Barbours Cut Terminal’s waiting time for vessel berthing is up to 1 day.
• The average gate turn time is 37 minutes.

Oakland:

• Average wait time of up to 10 days at Oakland Int’l Container Terminal (OICT) and up to 2 days at TraPac.
• Average import deliveries can take up to 3 / 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 56 / 52 minutes for OICT and TraPac respectively.

Seattle-Tacoma:

• Wait time of up to 4 days at Tacoma.
• 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 43 / 28 / 47 minutes for T18, Washington United Terminal, and HUSKY respectively.
• T18 Terminal will be closed on June 30, 2023.
• Husky will be offering a limited gate on June 24, 2023 for exports and empty receiving.
• Starting June, SSA Terminals T18 (Seattle), will offer a fee-based weekend gate.

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 3.5 days, and import units on the street are averaging at 4 / 5.8 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 2-67 minutes, depending on the terminal.

• Chassis Pools: All pools are operating as normal except:

1. Chicago - Constrained on 20’, 40’ and 45’  chassis.
2. Indianapolis - Constrained on 40’ chassis.
3. St. Louis - 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, 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.