IMPORT: Asia to North America (TPEB)

Recent Developments:

• Potential labor disruptions along the U.S. East and Gulf coasts in late 2024 (if a new dockworker contract is not reached) has led to some uncertainty among shippers.
• Severe draft restrictions at the Panama Canal are expected to continue into February 2024. This includes reducing the number of vessels transiting the canal each day to just 18 by then.

Rates: Rates remain low. 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: Issues with railcar availability have since subsided.  

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 plateaued after jolting up. However, with low demand, it’s likely that they will begin to decrease in the coming weeks.
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 Panama Canal’s deteriorated conditions has led to a routing shift for U.S. farm exports via the Suez Canal.

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 than traditional Panama Canal routing.
Capacity: Schedule reliability can be fickle in pockets.
Equipment: A tricky import market has spurred on rail car availability issues.

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.
• Routings via the Suez Canal have higher transit times and rates, however the opportunity cost between this alternative versus potential collateral from outstanding disruptions at the Panama Canal should be weighed.