Competitive Edge
October 23rd, 2024
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Latest Industry Happenings and Market Updates:
Across International Shipping: News and Developments
[Labor] Port of Montreal Overtime Strike Continues: Unionized dockworkers at the Canadian port are indefinitely engaged in a partial strike against overtime work. This means all Port of Montreal terminals are still open, but dockworkers will not be working overtime as part of their duties.
[International Business] MSC Acquires Brazilian Port Operator: The world’s largest ocean carrier MSC will capture a majority 56 percent stake in Brazilian ports and logistics operator Wilson Sons valued at $768 million.
MSC will end its 2M Alliance with ocean carrier Maersk on Jan. 31 and is widely expected to roll out a standalone network early next year. The Wilson Sons acquisition is another move to buff its service coverage around the world.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates have slightly decreased from the beginning of October. All ocean carriers renounced mid-October surcharges related to the now-defunct longshore strike.
Congestion: Mild congestion related to the longshore strike in early October has diminished. Cargo handling operations at USEC/GC ports are presumed normal.
Space: Post-Golden Week bookings have not strained vessel space on China-U.S. services.
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)
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
Harvest Season: The peak season for U.S. agriculture exports is underway. Outbound rail and barge volumes to U.S. ports surge.
Rates: Rates are healthy given seasonal demand from agriculture exports.
Space: Exporters can return to moving outbound loads via East Coast railroads or river barges to the Gulf Coast as the strike has ended.
Freight News
The Hugh K. Leatherman Terminal's Expansion Plan Unveiled
Southern California Ports See Record Highs in September, Rail Dwell Time Spikes
Hugh K. Leatherman marine terminal in Charleston is poised to initiate a significant expansion of capacity of the Port. Plans include adding a second berth and further enhancing Charleston’s strong position in short-haul intermodal transports, the Port’s Chief Executive Barbara Melvin said.
Melvin expressed how they expect Port Charleston to nearly triple that 3 million TEU container capacity to more than 10 million TEUs by 2040. While a lofty goal, Melvin continued to talk about their expansions and modernizations set for their three container terminals.
Additionally, the Leatherman terminal reopened shortly before the longshore strike occurred earlier this month. As of now, the terminal has one berth, but the port plans to open bids for a second berth would be projected to double the terminal’s current capacity by 2028. If a third berth is created, that would bring Leatherman’s capacity to 2.4 million TEUs and would be ready by 2033.
Ports in Southern California see record highs in September, but some are also experiencing spikes in rail dwells. The record imports in September had rail container dwell times increasing to an average of 9.25 days, which is up from 8.2 days in August and the highest dwells since 14.2 days in October 2022 – the Pacific Merchant Shipping Association (PMSA) reports.
While some terminals have been impacted by increased rail dwell times, some haven’t seen as much. COO at the Port of Long Beach, Noel Hacegaba, told the JOC that while they are busy, they are not seeing congestion, and still have room to handle more volume.
The PMSA represents terminal operators and shipping lines along the USWC.
While look ahead to next month, it’s like that imports will soften. November is typically a slower month in the eastbound transpacific lane as holiday merchandise typically arrives at their designated ports by late October. This allows retailers to stock their shelves in preparation for Black Friday sales (the day after Thanksgiving).
Did you know? With Johnny Cargo!
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