Takeaways

• U.S. West Coast: Everyone’s pressing question, “How soon is soon?” West Coast dockworkers and maritime employers jointly announced the two sides are “hopeful of reaching a deal soon”, however no definitive timeline has been revealed or speculated on. Despite the statement, ten months of stalling negotiations have given way to a lack of confidence in stakeholders. This has been reflected in the WC’s loosening share of the import market.

• U.S. Gulf Coast: The Port of Houston’s dwell fee program remains in effect.

• U.S. East Coast: Due to the volume drag, Savannah will seize its offering of evening truck hours while also discontinuing its use of several inland pop-up storage yards. The single-digit vessel counts indicate the volume dip is apparent at all EC gateways.

IMPORT: Asia to North America (TPEB)

Recent Developments:

• Low import volumes from China have led some carriers to shifting capacities in the transpacific. Zim recently increased capacity on its Southeast Asia to USEC service while winding down its China to USWC service. 

• 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 remain low and level.
Space: Space is open.
Capacity: Capacity is open. However, expect a continued presence of blank sailings.
Equipment: Unless 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)

Recent Developments:

• Relatively high rates and their profitability continue to attract carriers’ attention to the transatlantic market. However, expect the trade to eventually soften as demand dips below last year standards.

Rates: With capacity increasing and demand dropping, rates remain in a downward descent. However, they are still notably high when compared to pre-pandemic levels.
Space: Space is open to all U.S. coasts as congestion becomes an odd factor.
Capacity: Capacity continues to loosen as the market sees more ships, including larger ones, entering the market. It is set to increase even more with congestion having subsided.
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

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. If any uncertainty exists, it would be chassis availability at select inland hubs.
TIPS:
• Book at least two 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.