Competitive Edge
May 29th, 2024
Stay Current with InterlogUSA
Latest Industry Happenings and Market Updates:
IMPORT: Asia to North America (TPEB)
Recent Developments:
- Trade association National Retail Federation has upgraded its U.S. import forecast, expecting the surge in import activity to sustain through September.
Rates: Another wave of general rate increases (GRIs) will be implemented at the start of June. This surcharge will affect origin ports across Eastern Asia countries, such as China, Taiwan, Thailand, and Vietnam.
Continuing occurrences of GRIs have accelerated rates to high levels. In addition, strong demand has allowed these increases to sustain over the last several weeks.
Space: Space has tightened due to both rising demand and, while not as frequent as the past several months, carrier-enforced blank sailings.
Capacity: Generally speaking, vessel capacity has been better served across the market as demand prompts more utilization.
Equipment: Rising demand and longer vessel transits for outbound shipments from China have led to a crunch in equipment capacity at Chinese ports, notably Ningbo, Dalian, and Guangzhou.
TIPS:
- Hold your logistics partners accountable for frequent updates regarding current market conditions and routing impacts.
- As the market shows indicators of heating up, familiar yourself with the potential hurdles that can occur amid cases of tightened capacity and handling delays.
IMPORT: Europe to North America (TAWB)
Rates: Rates have ebbed and flowed as the trade rediscovers its balance. There has been no confirmation from carriers of GRIs in June.
Space: Space is open.
Capacity: Reassuring demand from U.S. importers has prompted better utilization of available capacity.
TIPS:
- Book at least three weeks prior to the ready date.
- Keep an eye on East Coast labor uncertainty as a coastwide strike could occur as early as October if no contract is settled between dockworkers and maritime employers.
EXPORT: North America to Asia
Rates: Rates continue to climb into June.
Capacity: Generally speaking, capacity is available, but U.S. export movement can be influenced, even hindered, when more attention is placed on the import market.
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.
Freight News
Class I Railroad, UP, Increasing Security To Prevent Cargo Thefts
Union Pacific has increased their cargo theft enforcement in an effort to combat cargo theft in the region. As the JOC reports, UP has added 60+ surveillance cameras and built 10 foot high concrete walls topped with razor wire on certain tracks.
Of course, cargo theft isn’t just prevalent in the Southern California region, but other hotspots as well, including Texas and Florida. These areas have a vast network of ports, interstate highways, and international trade connections that are alluring for cargo thieves.
Prioritizing preventative measures and swift response strategies allows companies to strengthen their defense during these evolving times of cargo theft.
What’s the latest out in Canada regarding Rail Labor Negotiations?
The latest update as of May 22nd, as we’ve seen nothing new be reported since then, is CPKC and TCRC last met on the 15th and the 21st to discuss negotiations but no progress has been made and no additional bargaining dates have been added since, according to CPKC latest bargaining update.
In addition to those bargaining talks, CN released a press release on May 16th stating they revised their original offer. One of those changes is eliminating their hourly rate proposal, which has been a key issue in discussions.
The parties entered into a mandatory “21 day cooling off period” back in early May. That period has technically expired, but the Canada Industrial Relations Board (CIRB) is still looking into whether a potential strike or lockout would impact Canadians. Thus, a strike or lockout cannot occur while this investigation is taking place.
NEW: Watch Our Webinar, Special Guest
NEW: FreightFM Episode Ep. 14
Curious how to use data analytics to your advantage? In this webinar we discuss all things data and how they can be used to elevate your transportation. We were joined by a special guest, Antonio Gomez, to discuss this and more in our May 22nd webinar. Take a listen!
Why are produce shipments handled differently? Why do rates/capacity change during seasonal shipping periods? How does this impact non-produce shippers? All those questions and more answered in this episode.
Did You Know? With Johnny Cargo!
![](https://www.interlogusa.com/wp-content/uploads/2024/05/DYK.jpg)
Johnny Cargo sure knows a lot! Other than fun and random facts however, Johnny also can provide insight into InterlogUSA’s many service and pricing options. He is always available for a quick conversation. Click here to chat with Johnny Cargo.
Interlog
Insights
In last week’s insights we recapped the month of May. No new Interlog Insights this week, but keep an eye out for our May archive coming out soon.
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