IMPORT: Asia to North America (TPEB)

Recent Developments:

• China’s Golden Week concluded last Saturday, October 7. Limited port operations and closed factories in China during the holiday did not significantly impact import activity to the same magnitude of previous years. However, a modest pre-holiday volume increase has contributed to extended dwells at many West Coast ports.
  • This includes, terminals at Los Angeles and Long Beach ports reporting increased rail container dwell times amid a worsening imbalance in rail equipment.

Rates: Rates are steady, but above pre-pandemic levels and average contracts.
Space: Space is generally open, but certain services have seen tightening.
Capacity: Blank sailings are expected to continue into Chinese New Year (February 2024) as carriers remain managing their overcapacity.
Equipment: The West Coast is experiencing an imbalance with rail equipment. However, given relatively low import volumes in 2023, the implied severity of this situation does not mirror the equipment deficits in 2021 and early 2022.
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)

Rates: Rates mirror pre-pandemic levels.
Space: Space is open, except for a few pockets.
Capacity: Major carriers are reallocating TAWB vessel capacity to the Asia-Europe trade.
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:

• Downbound barge rates have cautiously alleviated in the last week, suggesting potential relief for harvest season exporters. Conditions on the Mississippi River still remain far from ideal, however.

Rates: Rates have increased at a sharp clip.   
Capacity: Schedule reliability is currently erratic.
Equipment: Pre-Golden Week arrivals of imports have stirred an equipment imbalance on the West Coast which has affected exporters.
TIPS:

• Insufficient communication with erratic 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.