IMPORT: Asia to North America (TPEB)
- Last week, Tropical Storm Khanun breeched South Korea dumping heavy rainfall and subsequent flooding across the country. Port cities, like Geoje and Busan, saw impacts to air and ocean freight operations.
- Labor uncertainty on the U.S. and Canadian West Coast has receded. Canadian ports Vancouver and Prince Rupert now eye a gradual recovery to their operations, including rail movement to and from their facilities.
Rates: Demand and rigid capacity management have propped rates up. The second-half August rate increase isn’t nearly as high as anticipated, however.
Space: Space is generally open, but as the market strengthens, certain services are likely to tighten.
Capacity: Carriers continue to use their discretion on reducing capacity.
Equipment: Overall availability is fluid. In recent news, the administrator of a new chassis pool covering Southeast Coast ports plan to charge $100 per day to trucking companies that use equipment without prior registration for the pool.
- Establish a timeline for future shipments. Will you import before the holidays and within peak season? Are you holding off until 2024?
- Hold your logistics partners accountable for frequent updates regarding blank sailings, rate increases, or any other forms of market maintenance.
- Don’t get complacent with the favorable market conditions the past several months. Tightening capacity and higher rates could pose booking challenges through peak season. Plan ahead!
IMPORT: Europe to North America (TAWB)
Rates: Rates continue to steadily fall and are reminiscent of pre-pandemic times.
Space: Space is open, except for a few pockets.
Capacity: Major carriers have plans to reallocate vessel capacity to the Asia-Europe trade from this one.
Equipment: Availability on both origin and destination sides, unless advised otherwise.
- Book at least three weeks prior to the ready date.
- Premium add-ons (i.e., no-roll options and improved cargo reliability) remain assurances shippers should consider with transatlantic service.
EXPORT: North America to Asia
Rates: Rates are low and level.
Space: Space is open but tighter on the Gulf Coast.
Capacity: Capacity is widely available for all services.
Equipment: Availability at virtually all inland points and seaports. However, chassis access remains a wildcard against fluid intermodal movement.
- Book at least two weeks prior to the time of departure.
- Shippers with high volume projects should take advantage of the carriers’ receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.