IMPORT: Asia to North America (TPEB)

Recent Developments:

• Mexico’s Port of Lázaro Cárdenas is capturing more regular calls from transpacific ocean carriers as an alternative route into the U.S. Midwest that avoids the Panama Canal’s current draft limits.

Rates: While volumes are staying afloat, weak demand remains a contributor to softened rates. Major carriers have announced potential general rate increases (GRIs) for November.
Space: Space is generally open, but certain services have seen tightening.
Capacity: Blank sailings are expected to continue into Chinese New Year as carriers remain managing their overcapacity.
Equipment: Aside from a few pockets, equipment is widely available.  

TIPS:

• Hold your logistics partners accountable for frequent updates regarding blank sailings, rate increases, or any other forms of carrier maintenance.
• Establish a firm timeline for future import activity.

IMPORT: Europe to North America (TAWB)

Recent Developments:

• Carbon-related surcharges have been announced by ocean carriers ahead of the shipping industry’s indoctrination to the EU emissions trading system in January. For more information.

Rates: Rates are low and level following a moderate spike in early October.  
Space: Space is open.
Capacity: Capacity is plentiful.
Equipment: Availability on both origin and destination sides, unless advised otherwise.

TIPS:

• Book at least three weeks prior to the ready date.
• It’s unclear yet how carriers will react to this trade’s softened state, but be on the lookout for certain tactics, like blank sailings or rate increases, from them as a means to reduce their lossmaking.

EXPORT: North America to Asia

Recent Developments: Western Canada’s Port of Prince Rupert is undergoing a project that will boost its export capacity. Check out last week’s port feature for a closer look!   

Rates: Rates have fallen during October.
Capacity: Schedule reliability can be fickle in pockets.
Equipment: A tricky import market may always lead to potential imbalances impacting exporters.

TIPS:

• Insufficient communication with sailing schedules can lead to higher detention and demurrage fees as well as higher trucking and storage costs. Ensure your logistics partners are not keeping you and your cargo in the dark.