Takeaways

• U.S. West Coast: Three things seem inevitable in life–death, taxes, and stalling contract negotiations. Until resolved, the WC’s freight share will continue to hemorrhage as shippers remain averting.

• 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, New York, and Savannah all reaming in single-digits and have observed no week-over-week change. This is also the second-straight week that Savannah and New York have both stood put at only two vessels anchored offshore.

IMPORT: Asia to North America (TPEB)

Recent Developments:

• Chinese New Year’s typical celebration period wrapped up Sunday, February 5. Manufacturing, production, and full port operations are expected to resume this week.

• 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. 

Rates: Rates to all US coasts have leveled as we depart from CNY.
Space: Space is open.
Capacity: Capacity is open and increasing over the next few weeks. However, there is some carrier aggression with blank sailings to combat this.
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. 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.