Headlines

• The American Journal of Transportation reports Ceres Terminals announcement of the upcoming opening of a new permanent pop-up container yard nestled in the Greater Houston area. The 75-acre terminal is directly adjacent to the Port of Houston’s Barbours Cut Terminal.
• S. imports from South America remain strong and have put pressure on capacity and rates for the Brazil-U.S. trade lane. The Journal of Commerce reports spot ocean freight rates from Santos, Brazil to New York have rose from $7,400 per forty-foot equivalent unit (FEU) in February to $8,400 per FEU in June. Industry insiders expect further increases to rates in July.

UPDATE: U.S./Canada Ports – Number of Vessels at Anchor as of 06-28-22

• Savannah: 29 Vessels at Anchor (-4)
• Houston: 26 Vessels at Anchor (+10)
• New York/Newark: 16 Vessels at Anchor (0)
• Vancouver: 16 Vessels at Anchor (+1)
• Los Angeles/Long Beach: 13 Vessels at Anchor (0)
• San Francisco/Oakland: 8 Vessels at Anchor (+5)
• Charleston: 0 Vessels at Anchor (-1)

Note: This does not include vessels moored and being unloaded at port docks.

Courtesy: MarineTraffic

IMPORT: Asia to North America (TPEB)

Recent Developments:

• Shanghai has reopened after its two-month Covid-related lockdown. All businesses in the city have resumed work June 1, including manufacturing, production, and warehousing.
• From Triple Eagle (Group) Ltd., manufacturing and production in the city will take “some time” before returning to normal operations.
• With Shanghai opened up, many forecast a surge of pent-up demand will occur pressuring operations and increasing overall rates. However, as of now, it remains unclear to the exact strength of restoring volumes at the port.
• Contract negotiations between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) remain active. The existing labor contract between the two parties will expire this Friday, July 1.

Rates: Rates remain relatively elevated compared to pre-pandemic levels but continue to see decreases as with opening space. MSC plans to implement GRIs from Indian origins to U.S. destinations in July.
Space: Space is generally open for now, but any surges in demand and volumes will tighten space.
Capacity: Capacity has tightened in pockets. A certain trend of shippers shifting to the USEC has developed due to uncertainty around West Coast (ILWU and PMA) labor talks.
Equipment: Intermodal systems remain stressed with congestion and truck and chassis deficits.
TIPS: Book at least 2-3 weeks prior to ready date. Strongly consider premium services and, if cargo is ready now, make plans to move as soon as possible with the current openings in space and fallen rates.

IMPORT: Europe to North America (TAWB)

Recent Developments:

• USWC ports have seen alleviated congestion and vast improvements to vessel waiting times.
• USEC ports of Savannah and New York/Newark are experiencing significant congestion.
• Recurring challenges with ocean freight have led to higher conversions to air freight among importers.

Rates: Rates remain elevated. What’s been seen in June will likely sustain into July.
Space: Space remains critical for USEC and USWC. However, there have been glimpses of improvements.
Capacity: Capacity for both North Europe and Mediterranean services remain gripped.
Equipment: Equipment remains generally available at European seaports. However, inland terminals in Europe are still reporting equipment shortages.
TIPS: Book 5 or more weeks prior to ready date. Shippers are strongly advised to use premium service for no-roll options and improved reliability for their cargo.

EXPORT: North America to Asia

Recent Developments:

• For the USEC, congestion remains considerable at New York-Newark and Savannah ports.
• Diminished schedule integrity continues to challenge post earliest return dates.
• Stifling vessel backlogs in Shanghai have led to increased occurrences of blank sailings.
• Vessel arrivals remain smooth for USWC POLs.

Rates: Some carriers have issued limited GRIs for July.
Capacity: Available capacity remains fluid for USWC POLs.
Equipment: Truck, container, and chassis availability remain causes for concern and has significantly contributed to congestion of the intermodal system and IPI origins. Standard equipment at ports remains available.
TIPS: Book 4 to 5 weeks prior to time of departure to secure necessary equipment and vessel space.