Takeaways

• U.S. West Coast: While vessel congestion remains an issue of yesteryear for the USWC, the coast’s outstanding dockworker contract talks has presented their own challenges. 

Dockworkers and marine terminal employers have resumed negotiations the other week after agreeing to set aside (for now) a controversial jurisdictional issue involving Terminal 5 in Seattle. This dispute has greatly contributed to the lack of progress over the past nine months.

• U.S. Gulf Coast: The Gulf Coast port’s dwell fee program went into effect February 1. The Port of Houston will charge $45 per unit per day to cargo owners if a container lingers more than eight days.

• U.S. East Coast: Charleston dons a “donut” this week with zero vessels anchored off its shore. New York and Savannah follow a similar suit and have stayed in the single-digits. 

After a successful 2o22, Where New York saw itself leading the country in volumes for a good stretch, the EC hub is now seeing a dip in the amount of cargo coming through. 

While the EC continues to benefit from more freight share as shippers remain averting the WC, low overall demand from U.S. importers has impacted the throughputs of all American ports, including the EC.

IMPORT: Asia to North America (TPEB)

Recent Developments:

• Any Chinese New Year- related impacts on the market have settled. Rates remain soft, capacity is widely available, and space is open.

• Carriers remain aggressive with blank sailings and general rate increases to buff up and stabilize low rates. 

• West Coast contract negotiations between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) remain active. The existing labor contract between the two parties expired on July 1, 2022

Rates: Rates to all US coasts are low and level.
Space: Space is open.
Capacity: Capacity is open. However, expect more incidences of blank sailings from carriers. 
Equipment: For the most part, there is availability at inland and coastal ports.
TIPS:
• Book at least two weeks prior to the ready date.
• Expect blank sailings to carry on through Q1 2023.

IMPORT: Europe to North America (TAWB)

Rates: With capacity increasing and demand dropping, rates remain falling for this trade. However, they are still almost triple what they were pre-pandemic.
Space: Space to both U.S. coasts have opened up as U.S. congestion is minimal.
Capacity: Larger vessels have entered the market boosting the trade lane’s capacity. The 2M Alliance (Maersk and MSC) are announcing additions of even more market capacity.
Equipment: Availability has improved on both sides of the trade.
TIPS:
• Book at least three weeks prior to ready date.
• Even as market conditions become more fair, premium services (i.e., no-roll options and improved cargo reliability) should still be considered.

EXPORT: North America to Asia

Recent Developments:

• Agriculture exports typically begin picking up around this time of year. While this could present a surge in outbound volume, capacity will be expected to remain plentiful.

Rates: Rates are stable if not slightly decreasing.

Space: Space is wide open.

Capacity: Capacity is widely available for all services. No considerable changes to this market’s capacity through Q1, 2023.
Equipment: Most inland and coastal ports have balanced out their equipment availability. No outstanding challenges to U.S. availability to report as of now.
TIPS:
• Book at least three weeks prior to the time of departure.
• Blank sailings have not been routine for the market but remain in close contact with providers to be aware of any developments.
• Shippers with high volume projects should take advantage of carrier receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.