Takeaways

• U.S. West Coast: This week, Los Angeles and Long Beach has had one of their lowest combined vessel queues as of recent. Meanwhile, the Bay Area ports stood pat with no week-over-week change. In now what feels like inevitable tradition, another week passes without an agreement for a new West Coast dockworker agreement.

• U.S. Gulf Coast: The Gulf Coast port’s dwell fee program went into effect February 1. The Port of Houston will charge $45 per unit per day to cargo owners if a container lingers for more than eight days.

• U.S. East Coast: Charleston better watch its weight. It’s now been two straight weeks of donuts as the port enjoys zero vessels queued off it shore. Both Savannah and New York also remain minimally congested–an unsurprisingly result to report.

IMPORT: Asia to North America (TPEB)

Recent Developments:

• Carriers remain aggressive with blank sailings and general rate increases to buff up and stabilize low rates. 

• West Coast 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 expired on July 1, 2022

Rates: Rates to all US coasts are low and level.
Space: Space is open.
Capacity: Capacity is open. However, expect a continued presence of blank sailings.
Equipment: Unless directly advised otherwise, availability is open at inland and coastal ports.
TIPS:
• Book at least two weeks prior to the ready date.
• Expect blank sailings to carry on through Q1 2023.

IMPORT: Europe to North America (TAWB)

Rates: With capacity increasing and demand dropping, rates remain falling for this trade. However, they are still notably high when compared to pre-pandemic levels.
Space: Space is open to all U.S. coasts.
Capacity: Capacity continues to loosen as the market sees more ships, including larger ones, entering the market.
Equipment: Availability has improved on both sides of the trade.
TIPS:
• Book at least three weeks prior to ready date.
• Even as market conditions become more fair, premium services (i.e., no-roll options and improved cargo reliability) should still be considered.
• Blank sailings have not been routine for the market but remain in close contact with providers to be aware of any developments.

EXPORT: North America to Asia

Recent Developments:

• The typical yearly pickup in agricultural exports should garner a pleasant surge in outbound volume, however it should not come close to tightening the market’s loose capacity.

Rates: Rates continue to slip downward at a slight clip.

Space: Space is wide open.

Capacity: Capacity is widely available for all services. No considerable changes to this market’s capacity through Q1 2023.
Equipment: It can be generally said that most inland points and seaports have balanced equipment availability. No outstanding challenges at the present.
TIPS:
• Book at least three weeks prior to the time of departure.
• Blank sailings have not been routine for the market but remain in close contact with providers to be aware of any developments.
• Shippers with high volume projects should take advantage of carrier receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.