Ocean Rates and Trends for US Market | May 31, 2023

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Key takeaways for the US

• Carriers in the Middle East are expanding their port rotations and enhancing connectivity through new port calls.
• In April, the Port of Los Angeles handled a total of 688,000 TEUs, marking a significant 22% decrease compared to April of the previous year. This was the port's second busiest month on record.
• Following a recent $1.7 billion expansion, Neste's refinery has become the largest producer of renewable diesel and Sustainable Air Fuel (SAF) globally.
• Qantas and Singapore Airlines are both increasing their commitment to expanding capacity and routing in and out of Australia.
• Chinese carriers are also resuming services to Australia, and the US and other Asia-Pacific carriers are increasing the frequency of their flights to the country.

Read on for more in-depth updates.

Ocean Freight Market Updates 

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Air Canada Cargo is introducing new freighter routes to Punta Cana and Costa Rica.
• Carriers in the Middle East are expanding their port rotations and enhancing connectivity through new port calls.
• In April, the Port of Los Angeles handled a total of 688,000 TEUs, marking a significant 22% decrease compared to April of the previous year.
• This was the port's second busiest month on record.
• Significant waiting times are expected at the Vancouver port.
• Currently, 9 vessels are waiting for a berth.
• Delays in cargo handling may occur due to the high number of vessels waiting.
• The Port of Oakland is concentrating on the development of a 50-acre site near the port for cargo support operations.
• Along with new warehousing and intermodal facilities, the port will also be expanded to accommodate larger vessels calling at the Port of Oakland.
• Recent data released this week has led S&P Global Market Intelligence to revise its forecast of second-quarter growth of real GDP by 0.3%, now projected at 0.2%.
• Core retail sales, which exclude vehicle sales, were stronger than initially expected in April.
• Following a recent $1.7 billion expansion, Neste's refinery has become the largest producer of renewable diesel and Sustainable Air Fuel (SAF) globally.
• The plant currently can produce 1 million tons of SAF per year.
• The demand for renewable fuel has been on the rise in recent years, driven by government initiatives, particularly in Europe, to reduce carbon footprints and promote sustainability in the aviation industry.
• Qantas and Singapore Airlines are both increasing their commitment to expanding capacity and routing in and out of Australia.
• Qantas plans to add one million additional international seats over the next year, while Singapore Airlines will operate three daily A380 routes from Changi to Sydney and Melbourne.
• Chinese carriers are also resuming services to Australia, and the US and other Asia-Pacific carriers are increasing the frequency of their flights to the country.

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

• Carriers continue to price in order to win volumes in a market seeing soft demand and no material peak season.
• Rate reductions have slowed to the USWC while further reductions continue to be seen in the USEC.
• The top three biggest ports in the US have experienced consecutive monthly volume gains.
• The Port of LA, the Port of Long Beach, and the Port of New York have reported around 10%, 8.7%, and 12% increases in volume respectively on a monthly basis.

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

• New data from the US commerce department indicates a rise in US consumer spending in April.
• Consumer spending witnessed a 0.8% increase in April, following a 0.1% gain in March.
• The surge in consumer spending was driven by higher purchases of various forms of pharmaceuticals and light trucks.
• Wage growth in March and April has contributed to this unexpectedly strong level of consumer spending.
• This has resulted in an increase in imported goods by 1.8% in April.

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: 52 minutes for single transactions, and 86 minutes for double transactions.

• No Saturday gates are planned this week at other terminals.

Norfolk:

• Most vessels are expected to berth on arrival or within half a day, occasionally experiencing 1-1.5 day delays for berthing.

• Average gate turn times: 28 minutes for single transactions, and 38 minutes for double transactions.

• Two cranes down at Norfolk Int'l Terminal, no negative impact is expected this week.

Charleston Terminal:

• 2 days waiting time for vessel berthing at Wando Welch Terminal.
• No waiting time expected at North Charleston Terminal.
• Average truck turn times: 22 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 2 days, depending on the size of the vessel.
• Average gate turn times are 27 / 41 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 41 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 4.9 / 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 3 days are expected.

• Import deliveries are 1.5 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 39 / 42 / 42 minutes for T18, Washington United Terminal, and HUSKY respectively.

• T18 Terminal will be closed on May 19, May 26, and May 29, 2023.

• Washington United Terminal will be closed on May 19, May 26, and May 29, 2023.

• Husky will be closed on May 19, May 26, and May 29, 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 5 days, and import units on the street are averaging at 5.2 / 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 21-62 minutes, depending on the terminal.
  

Chassis Pools:

All pools are operating as normal at all tracked locations.

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.