Competitive Edge
June, 21st 2023
IMPORT: Asia to North America (TPEB)
Recent Developments:
- A tentative agreement has finally been reached between West Coast port employers and some 20,000 dockworkers represented by the ILWU union. Negotiations began in May 2022, with the previous contract expiring July of that same year.
- Freight movement through West India ports, including Mundra and Pipavav, is slowly recovering from related-disruptions due to a recent cyclone.
- Container terminals along India’s Gujarat coast have resumed operations. Read more below in our Freight News section for more information.
Rates: Rates remain low as carrier increases fail to stick. Possible port congestion surcharge for cargo scheduled to arrive at any U.S. or Canada port on or after July 5, 2023.
Space: Space is open.
Capacity: Open but carriers are aggressive with managing their excess capacities.
Equipment: Available at virtually all inland and coastal points, however, remain diligent with planning as shippers are still reporting demurrage blunders mainly on weekends from a lack of equipment access. Many equipment lessors are only open Monday through Friday.
TIPS:
- Keep a pulse on inventory and establish concrete timelines with ordering. Will you be importing before the holidays and peak season? Are you holding off until 2024?
- Pay special attention to how carriers are reacting to this lull in the market.
- Hold your logistics partners accountable for frequent updates regarding blank sailings, rate increases, or any other forms of market maintenance.
IMPORT: Europe to North America (TAWB)
Rates: Rates are continuing to fall heading into June.
Space: Space is open.
Capacity: Capacity is open.
Equipment: Availability on both origin and destination sides, unless advised otherwise.
TIPS:
- Book at least three weeks prior to ready date.
- Rates, while falling, are still high compared to other trades. Carriers still possess a degree of power in the transatlantic over the shipper.
- Premium add-ons (i.e., no-roll options and improved cargo reliability) remain assurances shippers should consider with transatlantic service.
EXPORT: North America to Asia
Rates: Rates are low and level.
Space: Space is open but tighter on U.S. Gulf Coast
Capacity: Capacity is widely available for all services.
Equipment: Availability at virtually all inland points and seaports. However, chassis access remains posing challenges for intermodal movement.
TIPS:
- Book at least two weeks prior to the time of departure.
- Shippers with high volume projects should take advantage of the carriers’ receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.
Interlog Insights: Look out for our upcoming poll!
Over the months, we’ve introduced a few segments throughout our weekly sign-up newsletter, Interlog Insights! Each segment has its own value for shippers, like yourself, and our team is interested to hear which one would be the most relevant for everyone’s current situation.
Here’s a quick rundown on what each segment is about:
Magic Freight Ball (Market Predictions from Interlog’s Experts) – International shipping and logistics are uncertain industries. Even in a softer market, outlook will always appear murky. Interlog’s team of experts lay out their predictions on what they’ll expect in the coming months in respects to trade lanes, capacity, and rates.
Shipper Hotline (An Industry Question and Answer) – Everyone has questions, but not everyone has the answers. In our segment “Shipper Hotline”, we encourage you to ask your most pressing and urgent questions about the industry to our experts. They’ll try their darndest to provide you with clarity and clear up any uncertainty or confusion you have.
Submit questions to our survey and we’ll find you an answer. We may even feature your question and our answer in an issue of Interlog Insights. Don’t worry, it’s completely anonymous!
RFQ Rescue (Guidance on Awarding Freight) – To contract or not contract, that is the question. We launched this segment at the start of year when it came on our radar that 2023 was going to be a little different from past years when it comes to how shippers award their freight volumes.
Some pursued a traditional, pre-pandemic, route of an all-encompassing contract for their freight, while many mixed things up by designating certain lanes and volume to contracts, and holding off other shipments to the floating market.
With “RFQ Rescue”, our team of experts analyze these different approaches and provide shippers with the tips and tricks to navigate the contract versus open market dynamic.
Freight News
Importers in the UK Express ‘Frustrations’ Regarding Domestic Rail Freight
Importers in the United Kingdom express their frustration over higher costs and inefficiencies regarding the domestic rail freight industry.
Last year the total volume of rail freight that was moved throughout the UK increased by 3 percent year-over-year, the JOC reports.
A key factor in the increase of demand for domestic rail freight is decarbonization, as rail provides the opportunity in the logistics industry to decrease carbon emissions.
Furthermore, the UK government is putting together a review of Britain’s railways. Some industry stakeholders in the UK are calling on the government to improve the way rail capacity is allocated, preserve the national network integrity, provide “iron clad” regulatory protection for rail freight and incentivize regional freight growth.
Indian West Coast Ports Slowly Reopen After Being Shut Down Due to a Cyclone
Operations have resumed at “full scale” after Cyclone Biparjoy forced the ports to shut down.
Mundra and Pipavav ports are slowly getting back to their typical scheduled vessel flows – according to Container News.
India has been dealing with a significant amount of extreme weather on their western coastline since the end of May. Which has caused a strain on container trade, producing heavy cargo backlogs and vessel skips.
“The industry needs to prepare for flexible routing options to mitigate disruptions in container movements,” Container xChange notes. Which is why effective contingency plans in situations like these are important.
A Podcast by InterlogUSA: FreightFM Episode 9
Check out our latest episode where some of our team took a company outing to Top Golf, for some team bonding. Listen as some of our team shares what their favorite summer activity is!
FreightFM features short-form video interviews with InterlogUSA’s industry experts offering insights into breaking news, market trends, our company’s history, and more!
Did You Know: Dragon Boat Festival 2023
China will have 3 days of public holiday lasting from June 22nd (Thursday) till June 24th (Saturday).
Dragon Boat Festival is one of the top traditional Chinese festivals. It was originally regarded as a traditional medical and health festival.
Many other Asian countries and regions also take part in the festival.
Read More: China Highlights
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Topics: The importance of first & final mile: Familiarity and consistency is critical, on time delivery with no demurrage or per diem, how forwarders and drayman work together, and more!
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Topics will be announced in coming weeks!
What is Coffee & Cargo? Every month, our experts sit down to discuss what’s currently happening in the shipping industry. Every so often we are joined by special guests, who share their specific expertise and experiences.
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