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: International Longshoremen’s Association (ILA) leadership has stated that it will not seek to extend contract negotiations past their Sep. 30 deadline nor seek assistance from federal mediators to broker a deal.
ILA represents unionized dockworkers at U.S. East and Gulf coast ports and is currently in negotiations for a new coastwide contract with maritime employers. If no agreement is reached by Sep. 30, the union has vowed to engage in a coastwide strike Oct. 1.
IMPORT: Asia to North America (TPEB)
Rates: Aside from India origins, inbound rates to all U.S. coasts have leveled this past week following several weeks of increases.
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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: Carriers have introduced more vessels into the trade, injecting more capacity to accommodate rising demand.
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.