IMPORT: Asia to North America (TPEB)

Recent Developments:

• With severe draft restrictions at the Panama Canal only worsening, two out of the three global shipping line alliances have shifted their Asia-East Coast services through the Suez Canal.
• Major carriers have announced general rate increases (GRIs) on North American imports from India beginning in January.

Rates: Rates have settled, however January GRIs across origins are likely. Surcharges on any cargo transiting through the Panama Canal.
Space: Space is generally open, but certain services have seen tightening.
Capacity: Blank sailings are expected to continue into Chinese New Year as carriers remain managing their overcapacity.
Equipment: There are no outstanding equipment deficits or bottlenecks.

TIPS:

• Consider routing alternatives around the Panama Canal. While other options may initially come at higher costs and transits, avoiding the canal’s disruptions may prove justified in the long run.
• Hold your logistics partners accountable for frequent updates regarding blank sailings, rate increases, or any other forms of carrier maintenance.
• Establish a firm timeline for future import activity.

IMPORT: Europe to North America (TAWB)

Recent Developments:

• Carbon-related surcharges have been announced by ocean carriers ahead of the shipping industry’s indoctrination to the EU emissions trading system in January. For more information.

Rates: Rates have receded to lower levels after an abrupt increase late last month.
Space: Space is open.
Capacity: Capacity is plentiful with no major adjustments from carriers yet.
Equipment: Availability on both origin and destination sides, unless advised otherwise.

TIPS:

• Book at least three weeks prior to the ready date.
• Carriers have yet to take aggressive action, like they have in the Pacific, regarding capacity management. However, this trade is not profitable for them in its current state, so be on the lookout as they may become more emboldened.

EXPORT: North America to Asia

Recent Developments:

• The U.S. is on pace to be the world’s largest producer and exporter of natural gas this year.

Rates: After sliding through October, outbound rates have levelled off—remaining relatively low. However, for exports rerouted through the Suez Canal, rates are notably higher.
Capacity: Schedule reliability can be fickle in pockets.
Equipment: Rail car availability issues have softened.

TIPS:

• Insufficient communication with sailing schedules can lead to higher detention and demurrage fees as well as higher trucking and storage costs. Ensure your logistics partners are not keeping you and your cargo in the dark.