Competitive Edge
July 10th, 2024
Stay Current with InterlogUSA
Latest Industry Happenings and Market Updates:
Across International Shipping: News and Developments
Port Update: The Port of Charleston has successfully eliminated a backlog of ships that accumulated off its shores following delays associated with a software issue in late May.
For more information about the Port of Charleston’s congestion, check out the June archive of Interlog Insights!
Labor: In June, the International Longshoremen’s Association (ILA), representing unionized dockworkers at U.S. East and Gulf coast ports, indefinitely suspended negotiations for a coastwide contract with maritime employers, citing a dispute with automation.
If a new labor deal is not squared away by the end of September, ILA leadership has vowed that a coastwide dockworker strike will occur.
IMPORT: Asia to North America (TPEB)
Rates: Inbound rates to all U.S. coasts are at levels last seen during the pandemic. Select lanes to the Gulf and East coasts are above $10,000 per forty-foot container unit.
Question or concerns on how this market change will affect your upcoming shipments? Get in touch with us today!
Space: Space is tight on most services. In some cases, carriers have not offered the entirety of space previously awarded within their contracts with shippers and NVOs.
Capacity: Stronger demand and longer voyages around southern Africa (due to geopolitical uncertainty in the Red Sea) have filled available capacity.
Congestion: A few Asian origins are reporting congestion and extended wait times. While Singapore has become the most publicized example, certain Chinese ports, like Ningbo, are also working through backlogs.
TIPS:
- Do not “wait it out”. Market conditions are not likely to soften anytime soon as peak shipping season is underway.
- Hold your logistics partners accountable for frequent updates regarding current market conditions, mainly continued instances of rate increases.
- Strongly consider booking shipments farther in advance as demand strengthens and space tightens.
IMPORT: Europe to North America (Transatlantic Westbound)
Rates: Rates have shown little change since decreasing in April, indicating a relatively healthy market.
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: Outbound rates from the West Coast have plummeted to levels last seen in April. Rates out of the East Coast have levelled off, showing far less volatility.
Capacity: As seen during the pandemic, export service is vulnerable in periods when carriers set their focus on a more favorable import market, as prioritizing inbound business is more profitable. As imports strengthen, exporters should heed this tendency.
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
Singapore’s Tuas Mega-Port Set to Launch and Add New Berths
FMC Ordered to Review Previous Demurrage Ruling
Singapore’s Tuas mega-port has launched one berth and intends to activate two additional ones this autumn as congestion and vessel waiting times ease at the world’s second-busiest container port.
PSA International, the terminal operator, began operations at Tuas’ first berth on July 1st. According to Singapore’s Transport Minister Chee Hong Tat, a second berth will open in October, followed by a third berth in December, as he informed local legislators on July 2nd.
Just last month the PSA reopened older berths and container yards to add more capacity. The port says they continue to see increases in vessel arrivals since the beginning of this year; handling 13,390,000 TEUS from January to April.
Last Friday, a U.S. appellate court rebuked maritime regulators for their narrow emphasis on the “incentive principle” in a recent ruling regarding detention and demurrage charges against Evergreen, the JOC reports. The court directed the U.S. federal Maritime Commission (FMC) to reassess its decision.
The decision by the court follows concerns that the FMC’s initial ruling did not adequately address complaints from U.S. shippers regarding Evergreen’s demurrage policies. This directive could prompt the FMC to revisit and potentially revise its previous decision, impacting how demurrage fees are applied in the future.
Per the JOC, the FMC’s ruling centered on Evergreen alleged failure to adhere to the incentive principle, despite charging motor carrier TCW for demurrage during a period when the Port of Savannah was closed, preventing TCW from accessing the container.
Did You Know? With Johnny Cargo!
ANSWER: B
Johnny Cargo sure knows a lot! Other than fun facts, 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.
SIGN UP: July Webinar
NEW: FreightFM Episode Ep. 1
Join us Wednesday July 17th at 10am CST for our monthly Coffee & Cargo webinar.
Topics will be announced shortly.
We take you back to our first episode of FreightFM, joined by our InterlogUSA’s President, Dave Canfield. We discuss everything from how Interlog first began and the growth we’ve experienced in the past few years.
Interlog 
Insights
In last week’s Insights we had a special Fourth of July edition sharing fun facts about the holiday and some interesting insights regarding American demand for holiday-related items.
Make sure you sign-up (it’s free), to view our insights in real time every Friday at 10am CST.
Sign up for our
industry answers
Our team works to provide valuable, unique, and relevant content to assist you in finding solutions. Sign up now.