Competitive Edge
November 13th, 2024
Stay Current with InterlogUSA
Latest Industry Happenings and Market Updates:
Across International Shipping: News and Developments
[Labor] Uncertainty at Canada’s Largest Ports:
A series of work stoppages impacted freight handling operations at some of Canada’s largest ports of Vancouver, Montreal, and Prince Rupert. As of November 12th, Canada’s Labor Minister has ordered the respectively longshoreman unions back to work and into binding arbitration with the maritime employers.
Before this back to work order, the longshoremen’s union at the Port of Montreal rejected a final offer from the Maritime Employers Association (MEA) which then had the MEA issuing a worker lockout.
[Carrier Services] CMA CGM will continue with Cape of Good Hope Route: Recently, the ocean carrier announced they would alter their main India-U.S. Indamex service, per the JOC, opting for the longer route around the Cape of Good Hope instead of returning through the Suez Canal.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates have relaxed since October. Some major carriers plan to implement general rate increases (GRIs) mid-November.
Capacity: In the new year, ocean carriers could begin to implement blank (cancelled) sailing programs to trim excess capacity expected in the market.
Congestion: Mild congestion related to the longshore strike in early October has diminished. Cargo handling operations at USEC/GC ports are presumed normal.
TIPS:
- As the year reaches its end, Q4 can be the right time to get a head start on your 2025 transportation and logistics strategies. While business needs can vary, in most cases, a discussion and evaluation of service providers (carriers, forwarders, Customs brokers, etc.,) should be top of mind, especially as it relates to any potential shortcomings in existing providers throughout 2024.
IMPORT: Europe to North America (Transatlantic Westbound)
2025 Services: Major carriers continue to unveil upcoming changes to their transatlantic offerings, including additional options to the Caribbean and South America.
Rates: Aside from a traditional round of peak season surcharges (PSSs), rates have generally shown little change since August.
Capacity: Available capacity at Europe ports have shown some signs of strain.
EXPORT: North America to Asia
Rates: Outbound rates to Asia from the U.S. East Coast have decreased slightly. Meanwhile, U.S. West Coast to Asia services remain at steady rate levels.
Space: Rail service to the U.S. West Coast has been challenged as increased dwell on import containers delay the pickup of time-sensitive agriculture exports.
Equipment: Slowdowns in equipment placement are being reported at several inland gateways, including Minneapolis and Omaha.
Freight News
Holiday Spending Outlook
Global Schedule Reliability Drops in September
Consumer spending during the winter holidays is projected to hit a record average of $902 per person, covering gifts, food, decorations, and other seasonal items, according to the latest survey from the National Retail Federation, conducted by Prosper Insights & Analytics. This is an increase of around $25 per person compared to last year and is $16 higher than the previous record set in 2019.
The survey from NRF conducted by Prosper Insights & Analytics asked 8,191 adult consumers and was conducted October 1st-7th.
As the holiday season approaches, shoppers are gearing up to visit a variety of retailers for gifts and seasonal essentials. As detailed in the survey, online shopping continues to dominate, with 57% of consumers intending to shop digitally this year, which shouldn’t come as too much of a surprise. Trailing behind are department stores (46%), grocery stores and supermarkets (46%), and discount retailers (45%).
This September, global schedule reliability dropped by 1.2 percentage points month-over-month, reaching 51.4%, according to Sea-Intelligence data. While reliability this year has remained relatively stable within the 50-55% range, it has shown a slight decline since peaking in May. The low volatility in schedule reliability this year provides shippers with a clearer understanding of month-to-month trends.
Additionally, the average delay for late vessel arrivals has increased by 0.21 days month-over-month, rising to 5.67 days, per Sea-Intelligence data.
In September, only four of the top thirteen carriers experienced an improvement in schedule reliability compared to the previous month, per Sea-Intelligence. When looking at year-over-year performance, none of the top 13 carriers saw an increase in schedule reliability.
Did you know? With Johnny Cargo!
The correct answer is machinery and equipment, according to export data from Trading Economics, an economics statistics website.
While Italy is romanticized for certain exports, mainly wine and fine leather goods, the Mediterranean country chiefly takes pride in supplying global markets with more industrious items. Aside from the leading commodity type of machinery and equipment, Italy also exports a fair amount of pharmaceutical, plastic, and chemical products.
InterlogUSA’s chat bot Johnny Cargo sure is an inquisitive soul. However, he doesn’t just ask about industry-related trivia. Johnny also loves to ask supply chain professionals about their shipping arrangements and which areas can benefit from InterlogUSA’s assistance as an end-to-end freight forwarder.
He works around the clock and is always available for conversation.
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