Competitive Edge
July 17th, 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: 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.
Freight News
Rough Weather Strikes in South Africa, Impacting Vessel Traffic
Gemini Alliance Start Date Paused Due to FMC Seeking More Information From the Parties
Stormy weather off the South African coast temporarily suspended vessel movements, worsening supply chain delays that have already been impacted due to diversions around the Red Sea.
According to the weather team at the London Stock Exchange Group, the powerful cyclone that swept through the region, likely influenced by unusually low temperatures, generated the high waves that occurred.
Additionally, CMA CGM Benjamin Franklin encountered unexpectedly severe weather off the South African coast on Tuesday, resulting in the loss of 44 containers overboard. This has impacted sailing schedules due to the extreme weather conditions.
Originally set to go into effect Monday, July 15th, the Gemini Cooperation is being halted due to the FMC seeking more details on the alliance’s potential competitive impacts. No specific details of the FMC’s additional request for more information has been released due to its commercially sensitive nature.
In their July 12th press release, the FMC stated they would reconsider the commencement of the Maersk-Hapag-Lloyd operational alliance, but the FMC needs to receive a fully compliant response to their request.
Next steps –
After the FMC receives responses from the appropriate parties, they will have 45 days to review the agreement before it becomes effective. There will also be a 15-day public comment period opening this week in the Federal Register.
Maersk is not expecting any issues to this, they mentioned to Supply Chain Dive that it’s a fairly standard FMC practice.
Did You Know? With Johnny Cargo!
What do you think the answer is? Let us know.
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 tomorrow – July 18th at 10am CST – for our monthly Coffee & Cargo webinar.
We’ll be discussing market conditions, import volume outlook, and current events.
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 discuss a wild week of weather; impacts from Hurricane Beryl and maelstorms of the coast of South Africa. Plus, the NRF predicts imports growth will continue.
Make sure you sign-up (it’s free), to view our insights in real time every Friday at 10am CST.
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