West Coast, Best Coast? For now…

In this market update, sea freight rates from Asia to North America’s west coast continue to decline, diverging from the east coast rates which remain high. The potential east coast strike on September 30 could shift more freight west. The Panama Canal has recovered from drought, while Cape of Good Hope transits decreased due to bad weather. Rates from India to North America surge with no new capacity until mid-August. US export ocean rates rise, and Asia-Europe rates soften due to increased capacity and port congestion. Air freight rates are stable, anticipating strong demand in Q4.

Asia to North America

West coast rates continue to decline and are diverging from East Coast rates, which remain near their peak. There is capacity on West Coast routes as extra loaders have entered the market. However, this could change quickly as we approach the possibility of an East Coast strike on 09/30. As soon as next week, we could see more freight being diverted to the West Coast. Many shippers are holding back cargo in hopes that rates will decline further. However, there are bullish predictions that we will have a traditional peak season, and the earlier peak may have been due to tariffs being implemented.

Panama Canal

Healthy rainfall in recent months has restored the Panama Canal to near-full operating depth, after a severe drought last year.

Cape of Good Hope

Transits around the Cape of Good Hope are lower than last week after bad weather battered the southern tip of the African continent for the second time this month. Total transits were down 14.8% in the week commencing July 22, with 597 compared to 701 during the week commencing July 15.

India to North America

Freight rates from the Indian Subcontinent continue to surge and outpace its Asian neighbors. Rates are expected to continue climbing into August, as no new capacity will be deployed until mid-month.

US Exports

Ocean rates for Q3 continue to increase, driven by a surge in global demand. It’s recommended to book 3-4 weeks in advance, especially if the origin is inland.

Asia to Europe

European container markets took a bearish turn in the week ended July 26, as a combination of increased capacity and slightly softening demand led to rate declines and a growing emphasis on container equipment. We’re seeing structurally blank sailings due to Cape of Good Hope (COGH) routings and port congestion in Asia. A few extra loaders were injected into the FEWB in the second half of July to compensate for downsized vessels and the extra transit time due to COGH routings.

Asia to North America/Europe

Global tonnage and rates seem to have stabilized last week. Expectations remain that increased demand for e-commerce shipments – already keeping rates elevated in the off-season – and other goods like electronics (new iPhone coming in September) in Q4 will mean a strong air cargo peak season.

Israeli strike on Yemeni port caused $20 million in damage  Hodeida port official says operations resumed just days after Israeli fighter jets dealt a heavy blow in retaliation for Houthi rebels killing man in Tel Aviv drone strike. Read More

How Student Protests Could Further Roil Bangladesh’s Garment Sector  Bangladesh’s 3,500 garment factories, now have to play catchup for five days of involuntary downtime that has resulted in significant delays and raised freight costs. Read More

Container spot rates have peaked as all major trades see prices fall  There was more evidence in this week’s container port freight markets that peak prices on the main east-west deep-sea trades have passed. Read More

French logistics sector on tenterhooks over Paris Olympics opening ceremony  Fears the Paris Olympic, and Paralympic, Games, could be blighted by industrial action in the transport sector have not materialized, and attention had turned to the promise of a grandiose and unique show for audiences worldwide. Read More

Cargo vessels sink as Typhoon Gaemi sweeps across Taiwan  General cargo vessel Fu Shun has sunk as Tyhpoon Gaemi causes devastation across Taiwan, with many other ships also affected. Read More

West Coast ports say ready to handle peak season bump after front-loading surge  Container dwell times improved at North America’s major West Coast gateways in June despite strong volume growth amid front-loaded cargoes, and port managers say their marine terminals have both the capacity and fluidity needed to handle what’s expected to be a healthy peak season. Read More

More rain sees normal service resumed on the Panama Canal – almost  Healthy rainfall in recent months has restored the Panama Canal to near-full operating depth, after severe drought last year. Read More

Questions? All you have to do is contact us.

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Some Rate Relief as “Christmas in July” Demand Wanes

In this market update, Asia to North America rates are retreating, particularly to the West Coast, due to increased capacity and niche carriers entering the market. Severe weather around the Cape of Good Hope is causing delays, with some vessels temporarily diverting to the Panama Canal. Rates from the Indian Subcontinent to North America are surging due to scarce space, though new services from Hapag and CMA should help. US export rates are rising due to global demand, and Asia to Europe sees equipment shortages and port congestion easing slightly. Air freight tonnage and rates show continued growth.

Asia to North America

Rates continue to retreat especially to WC NA as capacity and niche carriers enter the market increasing capacity. Demand also showed some signs of waning. Rates to EC are easing but not as quickly as WC mostly due to continued capacity constraints and concerns over potential labor strikes. We will continue monitoring the measures that carriers take to offset any potential sharp drop off in rates. More blank sailings have been announced in August to proactively manage capacity and keep rates elevated.

Cape of Good Hope

Last week severe weather conditions around the Cape of Good Hope forced container lines to seek shelter from strong winds and high waves. CMA-CGM’s vessel lost 44 containers overboard when the vessel went around the Cape of Good Hope on July 9th. It’s reported that about 600 container ships routing around Africa could be impacted by the extreme weather. Vessel diversions from the Red Sea since last November have added 14 days or more to the voyage between the US and Asia. We expect some vessels may be temporarily diverted to route via the Panama Canal. Wave heights have reduced to 23-26 feet and are expected to continue decreasing. Estimated arrival times for vessels have been delayed by 24-48 hours, and some vessel bunching may occur at ports globally.

India to North America

Freight rates from the Indian Subcontinent continue to surge as space is scarce. New standalone services from Hapag and CMA beginning in August should provide some relief.

US Exports

Ocean rates for Q3 continue to increase driven by a surge in global demand. It’s recommended to book 3-4 weeks in advance especially if the origin is inland.

Asia to Europe

Equipment shortages and port congestion is improving, however, there are several blank sailings announced for the second half of July and August.

Asia to North America/Europe

Global tonnage and rates continue to show 9-10% year-on-year growth as some sea freight is converted to air to avoid longer transit times. E-commerce continues to support year-on-year volume growth across both markets Asia to Europe & North America.

Airlines say cargo operations ‘severely affected’ by outage Delays and backlogs are expected across the air cargo industry, following the Microsoft & CrowdStrike IT outage, causing bottlenecks and delays with several airlines in the coming days. Read More

Container futures trading trend suggests no end to Red Sea crisis this year Trading of China’s Asia-North Europe container shipping futures saw double-digit gains for early 2025 freight levels, indicating that shippers believe the Houthis will continue to terrorize shipping in the Red Sea into next year. Read More

Ports of Los Angeles, Long Beach Commit $25 Million to EV Truck Chargers The Ports of Los Angeles and Long Beach are pouring $25 million into new charging infrastructure for electric heavy-duty drayage trucks. Read More

New container volume high provokes major concerns over peak season  Global demand for ocean freight container shipping has hit a record level, surpassing peak-Covid demand, but leaving shippers with a big question about the traditional peak season. Read More

The age of alliance domination of east-west box trades may be over The market share of independent container shipping services on the major east-west deep-sea trades has climbed in recent months and is returning to pandemic-era levels. Read More

Cargo Ship Grounds, Boxships Stopped Due to South Africa’s Bad Weather Bad weather and high seas off South Africa are continuing to disrupt most shipping in the region with forecasters warning of more storms to come. Read More

Cargo owners and truckers slam carriers’ call to delay new D&D rules  Organizations representing cargo owners and drayage providers are up in arms over an attempt by ocean carriers to halt the implementation of US rules on billing demurrage and detention (D&D) charges. Read More

US regulators putting the brakes on Gemini Alliance  The US Federal Maritime Commission (FMC) has asked for more information on Maersk and Hapag-Lloyd’s Gemini Alliance agreement that was due to become effective on 15 July. Read More

Questions? All you have to do is contact us.

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Rates Edge Closer to Pandemic Highs

In our July 9, 2024, market update, we examine the persistent challenges in the global shipping industry. Asia to North America routes face equipment shortages, space constraints, and increasing rates, with new GRIs and stringent weight limits. India to North America freight rates are surging due to space and equipment issues. The Panama Canal Authority has increased draft limits and daily transits. In Europe, container rates continue to rise amidst strong demand. Air freight tonnage is also increasing as shippers seek faster transit times.

Asia to North America

Equipment shortages persist in North America. As of 07/01, a new GRI has been implemented, with the East Coast (EC) rate double that of the West Coast (WC). Carriers prefer running services to the USWC due to shorter transit times and higher spot market revenue. On the USEC, stringent weight limits set by carriers exacerbate issues, with Maersk imposing HWS fees of $400/20’ and $800/40’/HC for containers over 20 metric tons. These limits reflect limited space due to full vessels.

Space is scarce, requiring bookings weeks in advance. Shipping lines offer more services, including expedited options and guarantees for equipment and space. Extra loader (XL) space helps reduce the backlog in Asia, improving conditions for the Pacific Southwest (PSW), but the EC remains overbooked with an average delay of 7 days. As of 07/01, PSS applies to all fixed-rate contracts, and many NAC contract allocations have been reduced or not honored.

India to North America

Freight rates from the Indian Subcontinent to East Coast North America have surged in the past week on space shortage and equipment issues. Due to severe space constraint from India to US West Coast – Hapag Lloyd has introduced a new service to US East Coast Ports & then move the containers by land (Rail Road) to US West Coast.

US Exports

Ocean rates for second half of the year are increasing driven by surge in global demand. It’s recommended to book 3-4 weeks in advance especially if origin is inland.

Panama Canal Update

The Panama Canal Authority (ACP) has announced another increase in draft and daily transits. The maximum authorized draft was raised by another 30 cm yesterday to 14.3 m, and will increase to 14.63 m on July 11. Additionally, a new booking slot for the neopanamax locks will be added beginning on August 5, bringing the total number of transits to 35 ships per day.

Asia to Europe

Container freight rates in Europe soared in the week ended June 28, as shippers maintained strong demand into North Europe amid supply-side challenges. Rates will continue to rise in the first half of July. Despite sources remaining bullish in the near term, there was an expectation that rate hikes will curb eventually, with participants predicting August as a likely time for the slowdown.

Asia to North America/Europe

Tonnage continues to increase as some sea freight is converted to air to avoid longer transit times. Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.

DOT week happens a couple times a year and each time there is a different inspection that truckers must go through that are on the road during that week. This can vary from brake checks, engine checks, headlight checks, etc. A lot of truckers won’t be on the road to avoid any potential fines/fees which means the less drivers on the road, the harder it is to find a truck and the higher the rates will be.

Further draft and transit improvements at the Panama Canal The Panama Canal Authority (ACP) has announced another increase in draft and daily transits. Read More

Ship attacked in Red Sea in latest maritime assault carried out by Yemen’s Houthi rebels A ship traveling through the Red Sea on Thursday reported being hit in an attack carried out by Yemen’s Houthi rebels. Read More

Maersk sets new chartering record with deal for $150,000 a day As liner operators become desperate for ships, charter rates have hit the $150,000/day mark. Read More

Rail strike in Canada likely as ‘essential services’ hurdle seems to have tumbled  Final submissions to the Canada Industrial Relations Board (CIRB) reveal neither rail companies nor union believe “essential services” will be disrupted by a strike, which could pave the way for action. Read More

Demand for air freight ‘perking up’, but this puts pressure on capacity Economic growth and changing global trade structures introduce uncertain and volatile factors to the air cargo market. Read More

Freighter aircraft: ‘we are on the cusp of major change in large widebodies’ Even with 21% of the fleet parked, freighters will continue hauling a large share of global airfreight as the growth in bellyhold capacity slows. Read More

Airfreight maintains ‘remarkable’ volumes, as ecommerce soars Existing traffic has held steady as have rates – in fact, air cargo continues to have a surprisingly good summer. Read More

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Freight Market Heats Up for Summer

,

In our latest market update, we explore the ongoing challenges and trends in sea and air freight. The North American container market is facing tight space and equipment shortages, driving rates to their highest levels since July 2022. Meanwhile, container freight from India to North America is softening with added capacity. The Panama Canal aims to resume normal traffic by October. In Europe, container rates are surging due to increased demand and service additions. Air freight tonnage continues to rise as some sea shipments shift to air to avoid delays.

Asia to North America

The North American container market continues with tight space, equipment shortages met with ongoing demand. Significant GRI stuck as of 6/14 and rate levels are at their highest since July 2022. It’s important to note that rates levels to WC are just $2000 short of their early 2022 highs. There are more GRI’s expected for July 1. However if this is an early peak we could see rates start to come down in August/September. That being said we don’t see the ongoing diversion around Cape of Good Hope or a return to the Suez Canal happening any time soon.

India to North America

Rates continued to increase week over week, except for the Northwest India to US East Coast (USEC) lanes. Continued blank sailings are expected from Northwest India to USEC. As a result, we can expect stabilized rates and potentially some upward momentum if the rate of blank sailings increases.

Panama Canal Update

The Panama Canal expects to resume normal traffic levels by October after restricting the number of ships crossing daily due to months of severe drought. The Canal’s Authority recently announced it will increase the maximum number of ships traveling the waterway to 34 per day in July, two more than now.

Asia to Europe

Container freight rates in Europe continued to surge as container liner companies introduced new services to supplement Asia westbound trade loops following a demand uptick. The continuation of container ship diversions from the Red Sea combined with container shortages and port congestion has caused shippers to move seasonal cargoes sooner than usual in fear of delays in addition to the longer transit times.

Asia to North America/Europe

Tonnage continues to increase as some sea freight is converted to air to avoid longer transit times. Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.

India plans new shipping firm to capture revenue from growing trade
India plans to set up a new shipping company to expand its fleet by at least 1,000 ships in the next decade, as Asia’s third-largest economy seeks a bigger chunk of revenue from surging trade.
– Read More

No let-up in cargo crime wave as thefts become even more sophisticated
Q1 24 saw the continuation of a dark trend: growth in the logistics arena being eclipsed by rising crime.
– Read More

Port of Baltimore Fully Restored After Key Bridge Collapse
The main channel to the Port of Baltimore fully reopened, nearly 11 weeks after a cargo ship lost power and slammed into the Francis Scott Key Bridge.
– Read More

Rail strike in Canada likely as ‘essential services’ hurdle seems to have tumbled 
Final submissions to the Canada Industrial Relations Board (CIRB) reveal neither rail companies nor union believe “essential services” will be disrupted by a strike, which could pave the way for action.
– Read More

Panama Canal increases draught and daily transits 
Operations of the Panama Canal are continuing to return to normal as water levels rise and it recovers from a record drought.
– Read More

Import prices fall sharply in another sign of fading U.S. inflation
The numbers: The cost of U.S. imported goods fell in May by the largest amount since the end of last year, adding to recent evidence inflation might be slowing again.
– Read More

Trump Touts ‘All Tariff Policy’ to Replace Income Tax 
‘Tariffs, tariffs, tariffs!’ might as well be former President Donald Trump’s campaign slogan.
– Read More

Flood of ecommerce will provoke airfreight peak season capacity crunch 
The flood of e-commerce traffic will mean stakeholders must “ride the storm” of capacity shortages.
– Read More

Questions? All you have to do is contact us.

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Climate, Conflict and China Tariffs Create a Covid-like Freight Environment

In our latest Market Update, we observe continued strong growth in the North American container market, with spot rates reaching a two-year high by the end of May. Factors such as the conflict in the Red Sea, Panama Canal adjustments, and potential labor strikes are influencing this surge. Meanwhile, the India to North America route shows a decline in rates due to increased capacity. Additionally, air freight tonnage is rising as businesses shift from sea to air transport to avoid delays, driven by e-commerce growth and heightened demand from Asia to Europe and North America.

Asia to North America

The North American container market continued to show strong growth during the week ending May 31, with container spot rates reaching their highest levels in nearly two years. In May, we experienced peak conditions for Transpacific Eastbound Ocean freight. Imports for the month increased by 6.8% year-over-year, and we anticipate that this demand will persist throughout the traditional peak season. We expect June imports to be 10.7% higher than the previous year. We have a perfect storm of events here between conflict in Red Sea, Panama Canal drought (though it’s getting better), potential labor strikes in Canada + East Coast of USA and the upcoming China tariffs going. Another $1000 GRI announced as of 6/15.

Fixed rates: As of June 1st, carriers implemented a Peak Season Surcharge (PSS), and it is likely that the PSS will be increased again on June 15th to narrow the gap between spot and fixed rates market.

PSS announcement:
Hapag: 20’/40’ – $1000/$2000
HMM – 20’/40’ $1600/$2000
ONE – 20’/40’ $800/$1000

India to North America

In contrast, container freight from the Indian Subcontinent to the East Coast of North America keeps softening as more capacity has been added.

Panama Canal Update

The Panama Canal has issued an advisory to shipping lines stating that, effective May 30th, it has increased the maximum authorized draft to 45’ (13.7 m) – 50’ is required for a return to normalcy. This adjustment, originally scheduled to take effect on June 15, is being implemented earlier due to the expected onset of the rainy season in the Panama Canal watershed and the current and projected levels of Gatun Lake over the coming weeks.

Asia to Europe

Demand remains higher than usual, and rates increased again in the first half of June, with another $1,000 rise per 40-foot container expected in the second half of June. This demand surge is driven by consumer needs and companies building up stock due to longer lead times and efforts to secure shipping space.

Asia to North America/Europe

Tonnage continues to increase as some sea freight is converted to air to avoid longer transit times. Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.

LTL rates make gains as TL stalls
Less-than-truckload pricing kicked off Q2 with a blast, while a truckload pricing index remained lackluster.
– Read More

Panama Canal increases vessel draft ahead of schedule
The Panama Canal has issued an advisory to shipping lines stating that, effective yesterday, it has increased the maximum authorized draft to 13.7 m.
– Read More

A CBSA strike could soon snarl border traffic. Here’s what you need to know:
Just as the summer travel season gets into gear, Canadians and visitors could find themselves waiting in long lines at the border — delays that could also deal a blow to the economy.
– Read More

Full Reopening of Baltimore’s Ship Channel Delayed
The challenging task of removing the final piece of Baltimore’s Francis Scott Key Bridge will take a bit longer than expected.
– Read More

Transpac ecommerce freighters on pause as US Customs checks every parcel
The US Customs agency’s decision to boost compliance in ecommerce imports, which appears to have impacted ecommerce shipments coming from mainland China on freighters – is leading to airport congestion, delays and the cancellation or suspension of some flights.
– Read More

Questions? All you have to do is contact us.

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Here we go again… Rate Increases and Premium Services

Welcome to our latest Market Watch update, where we delve into the latest developments impacting global logistics. The ongoing Red Sea conflict strains capacity and schedule reliability on the Asia to North America route, with potential strikes in Canada and the East Coast of North America looming. Meanwhile, India’s new services to North America are softening rates. The Panama Canal saw increased transits in April, though numbers remain below last year. Additionally, the Asia to Europe market faces rate hikes due to container space shortages. Air freight remains robust, fueled by ecommerce growth.

Asia to North America

Red Sea conflict continues to impact capacity and schedule reliability. Reports of space tightening and equipment shortages at origin ports. Potential for strikes in Canada and on the East Coast may cause further increases in June. Premium options are back for more reliable transit times. More blank sailings slated for June with potential for another GRI in June.

Panama Canal Update

Oceangoing transits in April totaled 789 vessels, 42 higher than March, but 289 below the April 2023 number, according to the Panama Canal Authority’s latest data.

India to North America

Plenty of capacity as new services are introduced and rates continue to soften.

Asia to Europe

Multiple sources noted that the availability of container space on vessels traveling from Far East Asia to North Europe was constricted for weeks to come, with some carriers releasing premium container rates on the market to ensure they capitalize on any leftover container ship allocation. The Red Sea crisis along with restocking is causing rate increases.

Asia to North America

Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.

Last hurrah for de minimis imports to US consumers before a wave of legislation
Online merchants selling to US customers, as well as their customs brokers, got an unexpected reprieve last month from the US Customs & Border Protection agency (CBP), which postponed a mandate for advance submission of shipment data.
– Read More

ILA, local ports wrapping up contracts, setting up coastwide talks
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) said Monday that local negotiations over a new contract covering port workers up and down the US East and Gulf coasts are close to completion.
– Read More

Strike threat to Canada’s rail network rises as negotiations stall
Canadian rail operators are racing to cement a deal with labor unions before a “damaging” strike can take place, but early indications are that negotiations have started to derail.
– Read More

East and Gulf Coast port labor negotiations to start soon
Both sides aim to land a new contract before the current deal expires Sept. 30, but strike concerns have shippers mulling mitigation plans.
– Read More

Panama Canal crossings resume, but some time before full normalisation
All of the liner services that were affected by the limits on Panama Canal transits have returned to their regular operation, as of this month.
– Read More

Mounting container shortages creating ‘total havoc’
Containers out of northern China are becoming increasingly hard to get hold of, report forwarders. A surprisingly strong market, plus lower vessel capacity due to the Red Sea crisis, is creating a shortage of both ships and containers.
– Read More

Ocean carrier cocktail leaving a sour taste in shippers’ mouths
The ocean carrier cocktail is back and it packs a punch. Two parts canceled sailings that spice up spot rates, coupled with a stiff pour of general rate increases, leaves shippers with a dull headache and a thinner wallet.
– Read More

Houthis threaten to target Israel-bound ships in the Mediterranean
Iran-backed rebels, who have launched scores of drone and missile attacks on shipping since November, say the escalation will take effect ‘immediately’.
– Read More

Maersk says Red Sea disruption could cut Asia-Europe capacity by 20%
Disruption to Red Sea container shipping is rising, Maersk said on Monday, forecasting this will cut the industry’s capacity between Asia and Europe by up to 20% in the second quarter.
– Read More

Strong consumer spending drives another import upgrade from US retailers
Retailers have yet again upgraded their forecast for imports landing on US docks this year, saying Wednesday they expect monthly volumes consistently above 2 million TEUs well into the 2024 peak shipping season.
– Read More

Panama Canal Oceangoing Transits Rise in April as Water Conditions Improve
Oceangoing transits at the Panama Canal rose to the highest level in seven months as water conditions at the global waterway have improved.
– Read More

Temu shifts focus from US – but air cargo still bullish on ecommerce
The net is tightening around China’s ecommerce platforms – the current drivers of air cargo. But despite signs of change, carriers remain committed to those volumes, and the expected Q4 peak.
– Read More

Questions? All you have to do is contact us.

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May Blank Sailings and Early Peak Season Drives Rate Increases

Welcome to our latest Market Watch update, where we dive into the dynamic world of sea and air freight. As we enter May, the landscape is shifting with the implementation of blank sailings and early signs of peak season activity. From potential rate increases driven by demand to updates on Panama Canal transit, we cover the key developments shaping the industry. Join us as we explore the impact of blank sailings, potential strike actions, and port operations on both coasts. Additionally, we delve into the state of air freight, where ecommerce continues to drive volume growth. Stay tuned for valuable insights and recommendations to navigate these evolving trends in the freight market.

 

Asia to North America

May Day celebration in Asia and across most of the world encouraged carriers to implement blank sailings. New contracts taking effect May 1st plus what many are calling a restocking for retailers (early Peak) is creating demand and potential overbookings for first half of May. There is potential for another GRI of $1000 as of 5/14. It seems that rerouting around Cape of Good Hope is absorbing most of the new build capacity where overall capacity in the market is down 4% year-over-year.

  • Anticipate PSS will apply to NEW fixed rate contracts to narrow the wide gap between spot and fixed rate market. Keep in mind carriers will prioritize higher paying cargo.
  • 26 Blank Sailings scheduled for May
  • Potential for strike on Canadian west coast is causing lots of rerouting and demand for USWC sailings.

Panama Canal Update

The Panama Canal Authority (ACP) announced that starting in the second half of May, it would allow 31 ships to transit the canal daily, up from 24 ships each day during the first half of May. The number of ships allowed to transit will increase to 32 by the start of June. The canal remains restricted to ships with a 44-foot depth, but more large ships will be able to transit.

Baltimore Port

To resume normal operations by end of May.

LA/Long Beach Ports

Rail container dwell times at the Los Angeles-Long Beach terminals have increased steadily this year, from 4.2 days in January to 6.26 days in February and 7.02 days in March, according to the Pacific Merchant Shipping Association (PMSA).

Asia to Europe

Vessel utilization is high into Europe. Markets anticipate further bullishness as restocking of inventory begins as well as container equipment shortages, continued diversions around Southern Africa and adverse weather conditions. We are also hearing that NAC containers are being rolled in favor of higher spot market freight No surprise here that carriers are prioritizing profits over contracts.. We anticipate carriers will attempt another GRI for May 14th.

 

Asia to North America

Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.

 

The Rocket Fuel Behind China Shock 2.0: Weak Currency, Deflation
In explaining China’s recent export surge, which has alarmed business leaders and politicians in the U.S. and Europe, many have blamed the country’s lavish manufacturing subsidies and bulging industrial capacity.
– Read More

 

Alternative fuel newbuilding contracts up 48% in first four months
Methanol-powered tankers were the biggest driver of alternative fuelled new vessel orders in April according to DNV.
– Read More

 

World’s largest electric container ship Greenwater 01 sets sail between Chinese cities
China’s state-owned China Ocean Shipping Group (Cosco) has launched the world’s largest fully electric container ship Greenwater 01. The vessel is set to operate weekly between the major coastal cities of Shanghai and Nanjing.
– Read More

 

Houthis attack four ships in Indian Ocean, Red Sea
Yemen’s Houthis said on Tuesday they targeted the MSC Orion container ship in a drone attack in the Indian Ocean as part of their ongoing campaign against international shipping in solidarity with Palestinians against Israel’s military actions in Gaza.
– Read More

 

U.S. obsession for China’s Temu, Shein sends air cargo prices soaring
Increasing air cargo prices from China to the U.S. are bucking the global trend, as Chinese e-commerce retailers like Shein and Temu that offer fast delivery times spur demand in what is typically a quiet time of year for cargo.
– Read More

 

First container ship arrives at Port of Baltimore since Key Bridge collapse: ‘Another milestone’
The first container ship arrived at the Port of Baltimore since the Francis Scott Key Bridge collapsed more than a month ago.
– Read More

 

Asia-Europe ocean trades a nightmare scenario – ‘unless you’re a carrier’
Forwarders are warning customers that demand on Asia-Europe ocean trades is beginning to look a lot like the pandemic peak.
– Read More

 

Import surge boosting rail container dwells at some LA-LB marine terminals
Rail container backlogs are mounting at some marine terminals at the ports of Los Angeles and Long Beach amid a surge in imports from Asia that is driving a sharp increase in eastbound intermodal train movements and exacerbating a chronic deficit of railcars returning westbound.
– Read More

 

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April Showers Brings Brighter Days for Panama Canal Transit

Welcome to our latest Market Watch update, where we bring you the latest insights and developments in the sea and air freight industries. As we transition into April, we see promising signs for Panama Canal transit, with increased daily allowances set to alleviate congestion and improve transit times. Additionally, we explore the stabilization of spot rates on the Asia to North America route and the impact of dense fog in key Asian ports. Join us as we delve into these topics and provide valuable information on fixed-rate contracts for 2024-25. Don’t miss out on the opportunity to optimize your logistics strategy—reach out to us today for more information.

Asia to North America

Spot rates have stabilized to half of their high from the end of January although a May 1 GRI is on the table.

Asian Ports

Dense fog in Shanghai, Ningbo and Busan has contributed to closures, congestion and delays.

Panama Canal Update

The Panama Canal Authority (ACP) announced last week that starting in the second half of May, it would allow 31 ships to transit the canal daily, up from 24 ships each day during the first half of May. The number of ships allowed to transit will increase to 32 by the start of June. The canal remains restricted to ships with a 44-foot depth, but more large ships will be able to transit.

  • Total MQC requirement: at least 300 TEU for each NAC
  • Weekly MQC requirement: at least 4TEU per week on single port pair
  • Rates are valid from 01 May 2024 till 30 April 2025.
  • Rates are inclusive of Bunker surcharges in Q2, which will be backed out at the time of filing and float quarterly per tariff.
  • Rates are inclusive of GRI/DTHC/ACC/ Panama or Suez Canal surcharge
  • Rates are subject to subject to ISPS/TSC/Carbon Tax if any.
  • Rates are subject to PSS under mutual agreement.
  • Rates are only applied to general cargo of legal weight.
  • Rates are subject to the carrier’s final approval and contract filing.

Asia to North America

Air freight rates remain elevated and significantly above pre-covid rates.

Jet Fuel

With ongoing conflict in the Middle East we expect jet fuel prices to increase especially as we approach summer travel season. Disruption to sea freight continues to drive cargo to airlines as well as continued high demand for ecommerce goods.

Looks like rain: Panama Canal Authority eyes return to normal service
The Panama Canal could be back at nearly full capacity in time for this year’s peak season, if current rainfall forecasts prove to be accurate.
– Read More

MSC Aries now bound for Iran, and crisis will be ‘a catalyst for higher rates’
Less than 2% of the containerships active in the Persian Gulf are Israeli-owned, and redeploying these vessels to other routes is unlikely to significantly disrupt trade, according to new analysis from Linerlytica today.
– Read More

Ocean carriers push Panama Canal to mitigate climate effect on water levels
The Panama Canal’s ability to handle more ships in the coming months is an encouraging sign for ocean carrier executives who say the added capacity will be needed as container shipping continues to avoid the Suez Canal. Yet the liner industry is calling on Panama to invest more to mitigate the effects of climate change on the canal.

– Read More

HMM unveils ambitious plan to double container fleet, capacity by 2030
HMM, South Korea’s top container line, is planning to increase both its container vessel fleet and lifting capacity by more than 50% by 2030 under a mid- to long-term strategic plan announced by chief executive Kim Kyung-bae Monday.
– Read More

Iran Launches Drone and Missile Attack at Israel
Iran launched a wave of more than 300 drones and cruise and ballistic missiles toward Israel, setting up a direct military confrontation between the two nations and raising the risks of wider regional war.
– Read More

Third temporary channel opens at Key Bridge collapse site
A third temporary channel opened Saturday at the site of the Francis Scott Key Bridge collapse. Commercial vessels were able to use the Fort Carroll Temporary Alternate Channel, which has a controlling depth of 20 feet, a 300-foot horizontal clearance and a vertical clearance of 135 feet.
– Read More

Questions? All you have to do is contact us.

#makingtheworldsmaller

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BCO’s Put Pen to Paper as Spot Rates Stabilize

Welcome to our latest Market Watch update, where we delve into the ever-shifting dynamics of sea and air freight. From the intricacies of Asia to North America routes to the latest trends in contract negotiations for 2024-2025, we analyze key developments shaping the industry. As supply and demand economics prevail in sea freight, and air freight rates remain elevated due to disruptions and e-commerce demand, we provide insights into the evolving landscape. Stay tuned as we explore fixed-rate contracts for the coming year and offer recommendations for navigating the complexities of global logistics. Don’t hesitate to ask us about fixed-rate contracts for 2024-2025.

 

Asia to North America

Supply and demand economics prevail as capacity continues to outpace demand while accounting for longer distance and transit times for Red Sea/Panama Canal detours. EC seems to have much more capacity with some WC voyages at capacity. We expect carrier capacity to increase in May to its highest point in 17 months.

Contract 2024-2025

BCO’s have started signing carrier contracts at rates 12-17% above last year.

 

  • Total MQC requirement: at least 300 TEU for each NAC
  • Weekly MQC requirement: at least 4TEU per week on single port pair
  • Rates are valid from 01 May 2024 till 30 April 2025.
  • Rates are inclusive of Bunker surcharges in Q2, which will be backed out at the time of filing and float quarterly per tariff.
  • Rates are inclusive of GRI/DTHC/ACC/ Panama or Suez Canal surcharge
  • Rates are subject to subject to ISPS/TSC/Carbon Tax if any.
  • Rates are subject to PSS under mutual agreement.
  • Rates are only applied to general cargo of legal weight.
  • Rates are subject to the carrier’s final approval and contract filing.

Asia to North America

Air freight rates remain elevated as sea freight disruption and robust e-commerce shipments keep demand high. Year-on-year data shows global tonnages up by +8%.

 

Ocean carriers curb trans-Pacific blank sailings while boosting capacity
Container carriers are blanking fewer trans-Pacific sailings than they did the previous two years as the longer voyages around the southern tip of Africa during the Red Sea hostilities continue to pull capacity from global trade lanes. They’re on track to increase capacity in the Asia-US trades to the highest level in 17 months in May.
– Read More

 

More Chinese Companies to Be Added to U.S. Import Ban List
A list of companies banned over forced labor concerns is expected to grow in the next few months, says Laura Murphy, a Homeland Security adviser.
– Read More

 

IATA reports an 11.9% jump in air cargo volumes for February
February was the third consecutive month of double-digit year-on-year demand growth for air cargo, according to data released by IATA.
– Read More

 

UPS wins air cargo contract with Postal Service, replaces FedEx
UPS will replace FedEx as the dominant provider of domestic air cargo for the U.S. Postal Service for the first time in more than 20 years. The express delivery giant on Monday announced that the Postal Service has awarded it a “significant” contract to move the majority of the mail agency’s air cargo in the United States.
– Read More

 

Red Sea crisis nears boiling point, unable to heat up spot rates
Russian warships entered the Red Sea last Thursday, for what the Russian Pacific Fleet’s press service has stated was the performance of “assigned tasks within the framework of the long-range sea campaign.” This intentional vagueness has invited no small amount of speculation as to the ships’ true objectives.
– Read More

 

Shipping disruption and e-commerce demand driving up airfreight rates
The start of the airline summer season this month is likely to hit airfreight rates with an increasing amount of belly capacity on passenger routes.
– Read More

 

U.S. to Crack Down on Trade ‘Loophole’ Used for China Apparel Shipments
The U.S. will crack down on an import method, favored by e-commerce giants such as Temu and Shein, that has allowed cheap clothes from China to flow stateside with no duties and little scrutiny.
– Read More

 

Rerouting trucks and ships away from Baltimore: What early data shows
As the days add up after the March 26 collapse of the Francis Scott Key Bridge, companies that gather data from trucks and supply chains are beginning to get an idea of where trucks are rerouting in the catastrophe’s wake. Data on ship rerouting is less conclusive.
– Read More

 

Questions? All you have to do is contact us.

#makingtheworldsmaller

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Rates Continue to Slide

Welcome to our latest Market Watch update, where we dive into the ever-evolving landscape of sea and air freight. From shifts in market dynamics on the Asia to North America route to ongoing challenges at West Coast ports, we analyze key trends impacting the industry. Additionally, we explore the implications of recent alliance renewals and offer insights into what to expect in the coming weeks. Join us as we navigate the complexities of global trade and provide recommendations for optimizing your cargo movements.

 

Alliances

The Ocean Alliance (CMA CGM Group, COSCO Shipping, Evergreen, and OOCL) confirmed the renewal of their partnership until 2032. Positioning themselves as the stable and reliable alliance. Following the renewal, effective April 2024, there will be some service adjustments.

West Coast Ports

We continue to see see 2-3 delays at LA/LB Ports. Loading rail to USEC 4-5 day delay, Loading rail to Midwest 6-7 day delays

Asia to North America

Floating market continues to soften while carriers continue to implement unwarranted GRI’s. Whether Red Sea surcharges will be upheld remains to be seen. We may continue to see SE Asia and Indian markets pick-up market share as buyers move away from China.

 

Asia to North America

Air freight rates continue to maintain rate levels as e-commerce shipments from China are quite robust.

 

As new vessel deliveries come onto market we may see schedules start to stabilize.

For time sensitive cargo:

  • East Coast: We recommend shipping to West Coast and either transload or connect to rail option if available.
  • Use Premium Services offered by carriers to guarantee space and equipment and reduce delays.

 

CMA CGM resumes Red Sea transits on ‘case-by-case’ basis
Container line CMA CGM has resumed transit of some vessels through the Red Sea on a case-by-case basis, despite continued Houthi attacks on shipping transiting the region.

– Read More

 

Exporters nervous as air cargo congestion builds in Delhi and Mumbai
Airlines are dealing with considerable cargo backlogs across major international airports in India as volumes spike, according to industry updates.
– Read More

 

Port of Los Angeles February cargo volume jumps 60% over previous year
SAN PEDRO, Calif. – March 18, 2024 – The Port of Los Angeles processed 781,434 Twenty-Foot Equivalent Units (TEUs) in February, a 60% increase over the previous year. It was the seventh consecutive month of year-over-year growth at the nation’s busiest port.
– Read More

 

BNSF, UP working through rail container backlogs in Southern California
Terminal operators at the ports of Los Angeles and Long Beach are working to reduce a backlog of rail containers that have accumulated during two consecutive months of strong imports and are urging the railroads to send more cars to the ports to help them finish the job.
– Read More

 

Hapag chief executive defends Gemini transhipment tactic
Hapag-Lloyd chief executive Rolf Habben Jansen said today he expected Asian export freight rates to continue to fall in the coming weeks – however, he trusted they would settle above pre-Red Sea crisis levels, which were “unsustainable”.
– Read More

 

Rumours of Houthi truce with China and Russia fall flat with latest tanker attack
Putting paid to reports last week that Chinese and Russian ships were to be given safe passage through the Red Sea by the Houthis, a Chinese tanker was attacked by missiles fired from Yemen on Saturday.
– Read More

 

Maersk resumes trans-Pacific service amid early ‘24 import growth
Maersk is restoring a Panama Canal express service between China and the US East and Gulf coasts that had been suspended last year due to weakening demand and the slide in ocean freight rates. The service resumption comes as rates have jumped from 2023 lows and imports from Asia show significant growth in early 2024.
– Read More

 

Air cargo market rides an incoming wave, but can it last?
The air cargo market has started the year on an apparent tear thanks to strong e-commerce volumes out of Asia and extended transits for ocean freight being rerouted around the Red Sea conflict zone, but whether the growth is sustainable or a product of low comparisons to last year remains an open question.
– Read More

 

What we know and don’t know about Baltimore’s Key Bridge collapse
Rescue efforts have turned to recovery in the tangled wreckage of the Francis Scott Key Bridge in Baltimore. Authorities have recovered the bodies of two workers, and four others are presumed dead after a cargo ship struck the bridge early Tuesday morning, sending the structure — and anyone on it — plunging into the frigid Patapsco River.
– Read More

 

Questions? All you have to do is contact us.

#makingtheworldsmaller

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