April 26th, 2023
Stay Current with InterlogUSA
Note the above services are where the greatest number of blank sailings are occurring on the transpacific eastbound lane. Other services as well may have announced cancellations or delays. Please contact us if there is a specific service or trade you are concerned about.
We extend our thanks to our Chinese partner RS Logistics for providing these reports.
SPECIAL UPDATE: A few carriers have backed off from a May 1 implementation date for transpacific general rate increases (GRIs) and have extended present rates valid until May 14.
Many other carriers still intend to issue increases at the start of next month, however. If you have any questions and would like to know which ones will be raising rates, please reach out to our team today!
IMPORT: Asia to North America (TPEB)
• West Coast contract negotiations (between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA)) remain active. The existing labor contract between the two parties expired July 1, 2022.
• Earlier this week, a meeting took place to discuss automation at WC ports, one of the key issues that has prevented progress for a deal.
For more on the West Coast labor talks, consider signing up for our Interlog Insights newsletter! This month, our team of experts dissected recent developments around this pressing issue for international shipping.
Rates: Carrier-imposed increases are beefing up rates, however without any inroads to demand, higher rates won’t likely stick in the long term.
Space: Space is open.
Capacity: Open, with more blank sailings planned in May.
Equipment: Unless advised otherwise, equipment is available at inland and coastal ports.
• Book at least two weeks prior to the ready date.
• If you have ready cargo, consider the potential cost savings of booking ahead of future GRIs. Market trends indicate more increases are to come.
• Hold your logistics partners accountable on frequent updates regarding blank sailings and rate increases.
IMPORT: Europe to North America (TAWB)
Rates: Rates are twice what they were pre-pandemic, but they continue to trend downward.
Space: Space is open.
Capacity: Capacity is open.
Equipment: Availability on both origin and destination sides, unless advised otherwise.
• Book at least three weeks prior to ready date.
• Premium add-ons (i.e., no-roll options and improved cargo reliability) remain assurances shippers should add to the tab with transatlantic service.
EXPORT: North America to Asia
• Low import volumes have placed pressure on agriculture exporters.
Rates: Rates are stable and low.
Space: Space is wide open.
Capacity: Capacity is widely available for all services.
Equipment: Availability at virtually all inland points and seaports. However, chassis can be hard to come by in pockets.
• Book at least two weeks prior to the time of departure.
• Pay special attention to how carrier maintenance in the transpacific may affect the export market.
• Shippers with high volume projects should take advantage of carrier receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.
InterlogUSA Proudly Presents...Freight FM Epsiode 7
Check out our latest episode of FreightFM…In The News–Germany and France Strikes
We discuss when these strikes started, the reason(s) for them, and the impact they have had.
Did You Know: Taiwan Export Orders Dip in March
Taiwan export orders dipped in March, the most since 2009.
Specifically, overseas orders to companies in Taiwan dropped to $46.6 billion in March, which was a 25.7% drop compared to last year.
The main reason for this drop was due to the weakening demand for electronics components–including semiconductors.
IANA Forewarns the Significant Impact of AB5 If It Were to Go Nationwide
The IANA – Intermodal Association of North America – has forewarned that if the AB5 in California becomes national policy, it would impact 4.4 million drivers having to involuntarily be reclassified. Additionally, the IANA says nearly 2.7 million of those impacted would suffer significant and direct income loss.
AB5 in California refers to the requirement of truck drivers being reclassified as employees instead of independent contractors. It went into effect last summer after it was upheld by the U.S. Supreme Court.
In testimony with the House Committee on Education and Work Force last Wednesday, the IANA reiterated their stance on the AB5 policy out in California and how if it were to be made nationwide it could potentially damage the country’s supply chain.
A ruling by the Department of Labor is expected to be published in May, which would provide federal guidance on how employers should classify workers who are economically dependent on a company, per the JOC.
Westbound Trans-Atlantic Demand Drops in March
Westbound Trans-Atlantic demand has dropped distinctly in March.
Specifically, U.S. imports from North Europe dropped 16.3 percent year-over-year and had a 5.7 percent drop in February, with some analysts expecting the weakening demand to hinder the trade lane’s historically strong second quarter.
Additionally, the latest schedule reliability data from Sea-Intelligence Maritime Analysis – on the westbound trans-Atlantic routes, stood at 44.3 percent.
While that is still below “acceptable service levels”, that metric is improving and is higher than what it was last year in February (at 14.3 percent).
Blogs of the Week
Check Out Last Week's Webinar!
- Blank Sailings
- Labor Talks on the USWC
- Market Updates
Sign Up For Our May Webinar!
Our next webinar is on Wednesday, May 17th at 11AM CST!
We will announce topics in the coming weeks. If you have any questions or topics you would like our experts to discuss in future webinars, please let us know.
In last week’s Interlog Insights, we shared our GRI predictions, provided updates on the USWC labor talks, and detailed what the Maryland Clean Trucks Act looks like.
Don’t forget to sign up so you don’t miss week four of our April Interlog Insights!
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