Across International Shipping: News and Developments
[Rail] Southern California Railroad Wins Federal Grant: A short line railroad serving the ports of Los Angeles and Long Beach has been awarded partial funding for five zero-emission trains.
The funding was provided through a U.S. Department of Transportation grant program emphasized on rail infrastructure and safety improvements.
The acquisition of zero-emission trains will help California meet its air quality goals and address pollution concerns to communities living near the Southern California port complex.
[Labor] ILA-USMX Talks: Collective bargaining negotiations between unionized dockworkers and maritime employers remain indefinitely paused. Neither side has issued an update since mid-November.
ILA and USMX agreed to extend talks through Jan. 15, but it remains unclear what actions will follow this deadline should an agreement not be reached. The new contract would cover 40,000-plus dockworkers across U.S. East and Gulf coast ports.
[International Business] ONE Acquires Southeast Asia Terminal Operator: On Dec. 2, ocean carrier Ocean Network Express (ONE) announced it purchased a minority stake in the New Priok Container Terminal One in Jakarta, Indonesia. The facility has a 1.5 million annual TEU capacity.
The strategic acquisition comes as new shipping alliances take form in early 2025, reshaping global ocean freight networks.
IMPORT: Asia to North America (Transpacific Eastbound)
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates have stayed level over several weeks but remain high when compared to pre-pandemic levels. Their strength in December is somewhat unusual as shipment volumes typically decline following peak season (May to November).
Demand: Uncertainty over new and/or increased tariffs in the incoming U.S. presidential administration has motivated many importers to bring cargo in earlier.
Capacity: In early 2025 there could be an excess of available vessel capacity as import volumes typically recede in February (post-CNY). This could prompt ocean carriers to implement blank sailing programs.
Congestion: Rail container dwell times have improved at the ports of Los Angeles and Long Beach.
TIPS:
- Early 2025 will feature events that could greatly impact international shipping: a shift in trade policy from an incoming presidential administration; Chinese New Year; and a potential longshore strike if ILA-USMX fail to secure a new contract before their mid-January deadline.
- 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 early fall.
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: Progress in improving container dwell times at U.S. West Coast ports has benefited export movement.