Takeaways

• U.S. West Coast: Congestion is minimal, but so are freight volumes. While there is low demand moving through all US coasts, the WC has been at the forefront. The WC’s import share continues to deteriorate as labor contract negotiations stall. 

• U.S. Gulf Coast: Houston stays level week-over-week. The Gulf Coast’s dwell fee program is set to go into effect today, 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: Congestion is also minimal on the EC. Given its stable track record over the last few weeks, we can safely assume the EC will be consistently low with its ship counts.

IMPORT: Asia to North America (TPEB)

Recent Developments:

• Chinese New Year began January 22. Ports will return to normal operations and factories will reopen February 5.

• 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 July 1. Recent job actions from dockworkers have reportedly disrupted cargo flow frustrating WC port officials. Dockworkers are “limiting the level of disruption” to avoid attracting media and government attention. Read more about this in our freight news section below.

Rates: No CNY rate hikes reported. Rates to the WC leveled before CNY. EC and GC rates are still seeing decreases.
Space: Space is open.
Capacity: Capacity is open. However, blank sailings are now typical as a means from carriers to shed excess market capacity and restore scheduling. That said, we cannot rule out a possible capacity crunch as a bulk of CNY blank sailings are expected over the next couple of weeks.
Equipment: Lower inbound volumes have brought relief to equipment deficits and congestion for both inland and coastal ports.
TIPS:
• Book at least two weeks prior to the ready date.
• Coordinate with providers as soon as possible on post-CNY bookings.
• 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

Rates: Rates are stable if not slightly decreasing. Though, they are not plummeting in this market like its inbound counterpart (Asia to North America).
Capacity: Capacity is widely available for all services. Aside from possible blank sailings in February, no considerable changes to this market’s capacity in the near future.
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.
• While not as frequent as its inbound counterpart, remain in close contact with your providers to be aware of any potential developments, like blank sailings.
• 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.