Competitive Edge
December 27th, 2023
Stay Current with InterlogUSA
Happy Holidays From InterlogUSA!
From all of us at InterlogUSA, we hope you have a wonderful holiday season and a happy New Year!
Earlier this month, members of our team gathered and celebrated during our annual holiday party! This year, our holiday party took place at Norseman Distillery located in Minneapolis, MN, where we learned how to make a variety of fun cocktails. Our team also participated in a variety of fun holiday themed games.
Click here for more pictures of this fun holiday event at our LinkedIn page!
Market Updates:
IMPORT: Asia to North America (TPEB)
Recent Developments:
- Major carriers have announced general rate increases (GRIs) on North American imports from India beginning in January.
Rates: Rates remain level, however they could rise in the coming weeks as longer transits (from canal uncertainty) leads to increased shipping demand measured in ton-miles (volume multiplied by distance).
Space: Space is generally open, but certain services have seen tightening.
Capacity: Longer transits averting the canals will absorb vessel capacity in order to maintain weekly services.
Equipment: There are no outstanding equipment deficits or bottlenecks.
TIPS:
- Hold your logistics partners accountable for frequent updates regarding current market conditions and routing impacts.
- Establish a firm timeline for future import activity.
IMPORT: Europe to North America (TAWB)
Recent Developments:
- Carbon-related surcharges have been announced by ocean carriers ahead of the shipping industry’s indoctrination to the EU emissions trading system in January. For more information.
Rates: Rates have receded to lower levels after an abrupt increase late last month.
Space: Space is open.
Capacity: Capacity remains plentiful. No major adjustments from carriers, yet.
Equipment: Availability on both origin and destination sides, unless advised otherwise.
TIPS:
- Book at least three weeks prior to the ready date.
- Carriers have yet to take aggressive action, like they have in the Pacific, regarding capacity management. However, this trade is not profitable for them in its current state, so be on the lookout as they may become more emboldened.
EXPORT: North America to Asia
Recent Developments:
- The U.S. is on pace to be the world’s largest producer and exporter of natural gas this year.
Rates: After sliding through October, outbound rates have levelled off—remaining relatively low.
Capacity: Schedule reliability can be fickle in pockets.
Equipment: Rail car availability issues have softened.
TIPS:
- Insufficient communication with 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.
Watch Last Week's Webinar!
TOPICS: Our experts discussed updates on Panama Canal, Red Sea disruptions, Chinese New Year prep, and 2023 import volumes.
Sign Up For Our January Webinar!
Our next webinar is Wednesday, January 17th, at 10am CST!
We will be announcing topics in the next couple of weeks.
If you have any topic suggestions or questions for our experts..
please reach out to us at sales@interlogusa.com
What is Coffee & Cargo? Every month, our experts sit down to discuss what’s currently happening in the shipping industry. Every so often we are joined by special guests, who share their specific expertise and experiences.
Freight News
Will Air Freight See a Volume Boost Due to the Red Sea Crisis?
With delays out in the Red Sea occurring and uncertainty remains on how long the crisis in the Red Sea may last, some think air freight may see a boost in volume, especially with Chinese New Year approaching. Air freight is of course the faster option, but it is also undoubtable more expensive.
Chinese New Year takes place on February 10th, but factories are expected to close around February 9th and not resume shipping, loading trucks until at least the 15th, perhaps even until the 20th.
With this uncertainty in the supply chain and some vessels diverting away from the Red Sea, this can cause higher transportation costs for shippers. As Freightwaves notes in an article, going around Africa to Europe is an extra 3,000 nautical miles, which can add additional transit times and fuel costs per vessel.
The U.S. announced last week the deployment of Operation Prosperity Guardian, which is a U.S. led operation working with a multitude of other nations to respond to attacks on shipping in the Red Sea.
Additionally, major shipping lines are continuing to weigh their options on whether or not to resume their transits in the Red Sea.
Hong Kong Sees Air Freight Volumes Continuing to Grow, Thanks to eCommerce
Hong Kong expects air freight volumes to grow expeditiously through the end of the traditional air cargo peak season, with experts pointing to ecommerce as the reason for this boost.
Shein and Temu – companies that sell products at significantly lower prices – have played a role as well. “China’s cross-border e-commerce, particularly from Shein and Temu to the U.S. and Europe, is driving a solid peak season for air cargo despite muted business to business volumes,” a market update report from banking company HSBC shows.
Estimated data from the Hong Kong Airport Authority shows their airport is on pace to handle a whopping 4.5 million tons of air cargo this year, which would be up 7% from last year.
This air cargo strength at the Hong Kong Airport has some industry stakeholders investing into the airport’s terminal handling infrastructure to support the volume growth, as the JOC notes in a recent article.
Check out some of our popular blogs in 2023:
- Major Retailers Are Moving Away From Using Private Charter Cargo Ships
- What Will Post-2M Be Like for Maersk and MSC?
- The Top 10 Ports in China 2022
- What Happens When Containers Fall Overboard at Sea?
- Kansas City Southern and Canadian Pacific Merger is Official
- Howard Terminal Option for Oakland A’s Ballpark is No More
- Low Water Levels in the Panama Canal: What You Should Know
- ILWU Canada is on Strike: What Does This Mean For Your Shipments?
- What Early Labor Contract Negotiations Out on the USEC/USGC Ports Currently Look Like
- Thanksgiving 2023: Spending, Travel, and More!
- Is the Suez Canal a Good Re-Routing Option For You?
- How Did U.S. Imports Fare in November?
- SHIELD: Why Interlog is Different
Interlog 
Insights
No new insights will be released this Friday. However, starting January 5th, we will be releasing our January week one insights.
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