Competitive Edge
July, 12th 2023
IMPORT: Asia to North America (TPEB)
Recent Developments:
- Blank sailings have contributed to an apparent space crunch. Some lanes are overbooked to the end of July and beginning of August.
- The Port of Haiphong (Vietnam) is currently undergoing a dredging project from early July to the middle of August. Right now, only one berth can be used.
- With dockworker strikes at West Canadian portsâVancouver and Prince Rupertâdragging on for over a week, vessel traffic outside of the port is piling up. Freight rail operations are also halted.
(Left) Several ships are anchored in the Pacific Ocean, while (right) more ships are queued within Vancouverâs harbor awaiting berth. Radar imagery taken July 11 and is courtesy of MarineTraffic.
Rates: A few carriers have issued GRIs for the second-half of the month, effective July 15.
Space: Space is open.
Capacity: Capacity is open. Carriers adding more in August and September as they receive and deploy new vessels they ordered.
Equipment: Available at virtually all inland and coastal points.
TIPS:
- Keep a pulse on inventory and establish concrete timelines with ordering. Will you be importing before the holidays and 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.
IMPORT: Europe to North America (TAWB)
Rates: Rates continue to steadily fall.
Space: Space is open, except for a few pockets.
Capacity: Capacity is open.
Equipment: Availability on both origin and destination sides, unless advised otherwise.
TIPS:
- Book at least three weeks prior to ready date.
- Rates, while falling, are still high compared to other trades. Carriers still possess a degree of power in the transatlantic over the shipper.
- 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
- Despite West Coast labor tensions averted, agriculture exporters are still eyeing to diversify their routing options to the East and Gulf coasts going forward.
Rates: Rates are low and level.Â
Space: Space is open but tighter on U.S. Gulf CoastÂ
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.
TIPS:
- Book at least two weeks prior to the time of departure.
- Shippers with high volume projects should take advantage of the carriersâ receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.
Freight News
New Car Market in the U.S. is Returning to Pre-Pandemic Levels
Forecasts are showing optimism when it comes to the new car market in the U.S.
Prices for cars skyrocketed the last few years due to a variety of factors, but a lot was due to supply chain constraints and tight inventory during the pandemic. That plus interest rates being increased, bumped up the overall cost of owning a car.
According to data from Edmunds, the average price of a new car was $47,892 in May â which was down 1.3 percent from its peak in December.
Furthermore, the annual pace of new car sales likely rose to 15.6 million in June, which is up from 13 million a year ago â per data from seven market researchers. This is largely due to pent-up demand from people and businesses that werenât able to find product last year.
TSA Rule Exemption Expires on October 31st
TSA is âurgingâ shippers to sign up for the Certified Cargo Screening Facility Program by October 31st, or risk a shipping embargo.
The CCSF program allows non-airline companies that follow TSA-approved criteria to inspect cargo and tender it to the airlines following strict chain-of-custody requirements.
Two years ago, TSA issued a temporary allowance for shipments that are more difficult to screen, i.e., large machinery, jet engines, and drums with chemicals.
But in four months that allowance will be coming to an end, which is why TSA wants shippers to sign up for the CCSF program.
According to Freightwaves, manufacturers essentially will need to get facilities certified by the TSA so they can screen themselves at locations where the products are built.
Or another option is to have certified forwarders, ground handlers or independent security firms to do the screening. However, some of them may reject those unusual shipments, because of the difficulty in screening them after theyâve been packed for transport.
Watch Our June Webinar!
Topics: The importance of first & final mile: Familiarity and consistency is critical, on time delivery with no demurrage or per diem, how forwarders and drayman work together, and more!
Sign Up For Our July Webinar!
Our next webinar is on Wednesday, July 19th, at 10am CST!
Some topics that will be discussed:
Rolled shipments and delays at ports
Canadian West Coast dockworker strikeÂ
Previewing peak season and what Interlog expects to see or not see this year
Possible July GRI and August rate increase?
What is Coffee & Cargo? Every month, our experts sit down to discuss whatâs currently happening in the shipping industry. Every so often we are joined by special guests, who share their specific expertise and experiences.
Did You Know: Over $1.5 Billion Dollars Is Going Towards Port Infrastructure Updates in California
Of that $1.5 billion, $450 million of that will go towards zero-emission infrastructure, locomotives, vessels and vehicles.
These new projects will go towards boosting capacity to move goods through the port of Los Angeles and Long Beach and enhance all major trade centers throughout the state.
Additionally, out at the Port of Oakland, they received $119 million dollars in grant funding as part of the Portâs Freight Infrastructure Program. These funds will support marine terminal modernization and roadway improvement projects.
Read More: Railway Age and AJOT
A Podcast by InterlogUSA: FreightFM Episode 9
Check out our latest episode where some of our team took a company outing to Top Golf, for some team bonding. Listen as some of our team shares what their favorite summer activity is!
FreightFM features short-form video interviews with InterlogUSAâs industry experts offering insights into breaking news, market trends, our companyâs history, and more!
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