Takeaways

• U.S. West Coast: An update regarding the West Coast labor contract. Dockworkers and their marine terminal employers “remain hopeful of reaching a deal soon”, the two sides said last week. Since talks began in early May of last year, the two sides have been at odds in reaching an agreement on a new labor contract. Their impasse is closing on ten-months and, while a welcomed display of public address that’s otherwise rare, this joint statement mainly rehashes prior talking points.

West Coast ports and American importers remain frustrated with the latter rerouting cargo away from the WC to circumvent any possible disruptions linked to these ongoing talks.

• 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 for more than eight days.

• U.S. East Coast: Due to the volume drag, Savannah will seize its offering of evening truck hours while also discontinuing its use of several inland pop-up storage yards. The single-digit vessel counts indicate the volume dip is apparent at all EC gateways.

IMPORT: Asia to North America (TPEB)

Recent Developments:

• 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 remain low and level.
Space: Space is open.
Capacity: Capacity is open. However, expect a continued presence of blank sailings.
Equipment: Unless advised otherwise, availability is open 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 notably high when compared to pre-pandemic levels.
Space: Space is open to all U.S. coasts as congestion becomes an odd factor.
Capacity: Capacity continues to loosen as the market sees more ships, including larger ones, entering the market. It is set to increase even more as congestion had eased.
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.
• Blank sailings have not been routine for the market but remain in close contact with providers to be aware of any developments.

EXPORT: North America to Asia

Rates: Rates continue to slip downward at a slight clip.
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: It can be generally said that most inland points and seaports have balanced equipment availability. If any uncertainty exists, it would be chassis availability at select inland hubs.
TIPS:
• Book at least two 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.