IMPORT: Asia to North America (TPEB)

Recent Developments:

• Carriers are struggling to secure volume commitments from importers, particularly ones with smaller volumes, as rates continue to fall on the open market.
• With a tentative agreement reached between West Coast dockworkers and port employers, a lengthy ratification process to finalize the new labor contract is underway. Typically, this can last for up to three months, however stakeholders aren’t anticipating any friction here on out.

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 and sagging margins.
Equipment: Available at virtually all inland and coastal points.
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.
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

• Export movement on the West Coast will benefit from a new labor contract as declining import volumes due to prior labor uncertainty led ports to roll back worker shifts. As a result, exporters were facing delays and higher transport costs.
• Despite West Coast stability, agriculture exporters are still eyeing to diversify their routing options to the East and Gulf coasts as well.

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.