March 29th, 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.
AIR FREIGHT ALERT: Strike Actions in Germany Halt Rail and Air Operations
This past Monday, union-led strikes of transport workers in Germany halted rail and air operations. Major German rail companies had to cancel train services, while flights at key airports, like Munich and Frankfurt, were cancelled on Sunday and Monday as result of these strike actions. The workers represented by unions are demanding pay increases to curb the country’s high inflation rate. Meanwhile, unrest continues in France having its own unique impacts on logistics. Please refer to our Freight News section below for more details.
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. Transport stakeholders, including shippers, have urged the Biden Administration to intervene in the negotiations citing the lack of progress made over the last ten months between the two parties.
• Carrier aggression is showing its teeth again as instances of general rate increase (GRIs) become more common heading into April. Blank sailings are still in play as well.
Rates: Rates to all US coasts remain low and in the ballpark of pre-pandemic levels.
Space: Space is open.
Capacity: Capacity is open. However, blank sailings remain a factor.
Equipment: Unless advised otherwise, availability is open at inland and coastal ports.
• Book at least two weeks prior to the ready date.
• Blank sailings will be routine through Q1 2023.
IMPORT: Europe to North America (TAWB)
Rates: Rates remain falling, but are still twice what they were pre-pandemic.
Space: Space is open to all U.S. coasts. Congestion is still an odd factor.
Capacity: Capacity continues to loosen as the market sees more ships, including larger ones, entering the market. It is set to increase even more with congestion having subsided.
Equipment: Availability has improved on both sides of the trade.
• Book at least three weeks prior to ready date.
• Even as market conditions become more fair, premium services (i.e., no-roll options and improved cargo reliability) should still be considered.
EXPORT: North America to Asia
Rates: Rates continue a steady dip downward.
Space: Space is wide open.
Capacity: Capacity is widely available for all services and will remain unperturbed going into Q2 2023.
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.
• Blank sailings have not been routine for the market but remain in close contact with providers to be aware of any developments.
• 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.
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We discuss current market conditions and share different tips for shippers on how best to prepare when the market fluctuates.
Did You Know: MSC Adds the Port of Jacksonville to its Trans-Atlantic Network
Exporters of food and beverages, forest products, and automotive parts will be happy to hear of a new direct service to North Europe.
Starting in late April, MSC’s standalone Baltic-Northern Europe-U.S. East Coast will be calling the SSA Jacksonville Container Terminal at Jaxport’s Blount Island Marine Terminal.
The service will call Jaxport every two weeks.
Public Transport Strike in Germany
This strike was only for 24 hours, took place Monday March 27th, and was confined to Germany.
However, the effects of this strike could be felt outside of the country, as incoming trains were being delayed or canceled.
Flights were grounded at some of the busiest airports in Germany on Sunday (the 26th) and Monday (the 27th). There was no regular passenger traffic at Munich Airport due to all-day strikes.
Additionally, rail operator Deutsche Bahn canceled all trains. This had an impact on all German rail operations, as employees from all areas of Deutsche Bahn and other rail companies were called to walk out.
Maersk informed customers to expect delays for shipments moving via rail and through inland terminals, during the beginning of this week.
This 24-hour strike was put together by rail and transport union, EVG, and trade and transport union Verdi, over a pay dispute.
Protests in France Led to Some Port Closures
- French authorities have asked airlines to continue cutting flights through Wednesday (March 29th) amid the strike.
- Flights at Paris-Orly were reduced by 30 percent last Friday and by 15 percent last Saturday.
- Travelers should anticipate delays and cancellations at various French airports.
- Paris-Orly, Marseille and Toulouse airports will be partially impacted between Tuesday, March 28th through Friday, March 31st.
- Lyon, Bordeaux and Nantes airports will be disrupted on March 31st.
- Port workers have been asked to go on strike for 24 hours on Tuesday, March 28th
- Services between Newhaven and Dieppe were cancelled on Tuesday, due to the action
- DFDS said traffic was flowing through check-in and border controls at Calais, Dover and Dunkirk on Tuesday, per The Connexion.
ROADS AND REFINERIES:
- Pressure of supplies at refineries have been impacted by the strike action; around one-in-five petrol stations have reportedly been suffering fuel shortages.
- Southern areas of Gard and Vaucluse are imposing limits on how much fuel can be bought at petrol stations, this is expecting to go on until March 30th.
- More oil tankers are diverting away from France as strikes continue to disrupt the petroleum industry in France
This action is due to a nationwide movement against pension system reform that was forced through parliament two weeks ago, which lifts the retirement age up two years to 64 – per Reuters.
Blogs of the Week
Watch Our March Webinar!
- Strategies for succeeding in the freight market
- Upcoming RFQ Season: Evaluating all areas of business
- 2M split and how that will impact ocean shipping
- Market Updates
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