May, 24th 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 you are concerned about.
Courtesy: Interlog’s partner RS Logistics provided these schedules.
IMPORT: Asia to North America (TPEB)
• West Coast contract negotiations remain active. The existing labor contract between the two parties expired July 1st, 2022.
• Blank sailings continue to impact lead times.
Rates: Rates remain low. A few carriers have announced a possible June 1st GRI.
Space: Space is open.
Capacity: Open but carriers will deploy certain tactics to curb low demand.
Equipment: Available at virtually all inland and coastal points. Chassis access can still pose demurrage headaches for intermodal, however.
• Keep a pulse on inventory and be sure to have a logistics gameplan in place for your next orders.
• Pay special attention to how carriers are coping with this lull in the market.
• Hold your logistics partners accountable on frequent updates regarding blank sailings, rate increases, or any other carrier tactics.
IMPORT: Europe to North America (TAWB)
• A new agreement in France has been reached. We can expect no further labor strikes.
• Expect weeks for France to clear congestion.
Rates: Rates continue to fall through May. June will continue to see reductions, but we could start to see rates level out.
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.
• Rates, while falling, are still high compared to other trades. Carriers still possess a degree of power in the transatlantic over the shipper (as opposed to the transpacific). Keep these dynamics in mind.
• 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 U.S. Gulf Coast.
Capacity: Capacity is widely available for all services. Blank sailings continue.
Equipment: Availability at virtually all inland points and seaports. However, chassis, like for importers, can pose challenges for intermodal movement.
• Book at least two weeks prior to the time of departure.
• 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.
• Exporters ought to have their fingers crossed and hope a new West Coast contract is finally introduced. The impacts of this labor impasse have bled into the export market.
FreightFM Episode 8: A Podcast by InterlogUSA
Check out our latest episode where Interlog’s Marketing Manager, Rachel Thielen, discusses the impact blank sailings and slow steaming have on the market.
FreightFM features short-form video interviews with InterlogUSA’s industry experts offering insights into breaking news, market trends, our company’s history, and more!
Did You Know: More Ship Scraping Is Expected in the Next Decade
Throughout the next 10 years (2023-2032) more than 15,000 ships that have deadweight capacity of more than 600 million tonnes are expected to be recycled.
This is more than twice the amount recycled in the previous decade.
This comes after tighter emissions control regulations push carriers to send lofty numbers of vessels for demolition.
Read More: JOC
ONE and Wan Hai Both Agree to Pay Civil Penalties
ONE has agreed to pay a $1.7 million dollar civil penalty for allegedly violating the interpretive rule on detention and demurrage. They will avoid a formal investigation by the U.S. FMC by agreeing to this settlement.
The company also has to provide refunds and waivers to all shippers impacted by the alleged detention charges.
ONE is not the only ocean carrier who has had to pay a significant amount in civil penalties and fines. Wan Hai has agreed to pay $950,000 in civil penalties addressing allegations that the business violated U.S. laws regarding its charges related to empty container returns.
Wan Hai also has to fully refund shippers that are impacted by these alleged detention charges while also taking preventative measures to make sure they are in compliance with the FMC’s Interpretive Rule on Detention & Demurrage.
Rail Service Looks Better This Year (So Far) in Comparison to Last Year
When you compared 2023 to 2022, rail service has improved for agricultural and grain shippers.
However, some say rail service is still not ‘up to par.’
The U.S. Department of Agriculture’s Agricultural Marketing Service noted that rail service metrics were mixed in the first quarter of this year. The agency said that reduced carload volumes helped to improve service, but dwell times continued to be persistent.
Additionally, the U.S. Secretary of Agriculture has urged the Surface Transportation Board to follow through on a variety of different actions that would help improve rail service.
Some of those actions include:
- Addressing railroads’ demurrage fees
- Continuing actions to address reciprocal switching
- Clarifying the definition of the common carrier obligation
- Requiring the collection of first and last-mile service data
Blogs of the Week
Watch Last Week's Webinar!
Topics: Transatlantic Trade Lane Updates, Technology: the difference between technology visibility and qualified industry experts to fix/improve each shipment, In the News and Market Updates!
Sign Up For Our June Webinar!
Our next webinar is on Wednesday, June 21st, at 10am CST!
We will be having a guest speaker on our June webinar – you won’t want to miss it!
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.
In last week’s insights, we answered our second question for this month’s Shipper Hotline – “What are blank sailings?”
Answer: Essentially a blank sailing is when a sailing is cancelled by the ocean carrier. We discussed blank sailings a bit more in our webinar last week, check that out if you haven’t already.
We also discussed how AMC theaters are launching their own candy amidst manufacturing price hikes. Plus, is there a contract power dynamic shifting?
“A pretty cool spot for a small town like Paducah,” says Interlog’s Tara Brooking as she basks at the barges passing by on the Ohio River.
Nearby, where she took these photos, is the Paducah-McCracken riverport. The port is situated on 48-acres and has more than 27-acres of land storage capacity. The barges, like the one’s seen here, mostly transport grain, steel, logs, and other bulk cargoes.
Paducah isn’t just a small town with an unassuming port either. Its location suggests nothing other than pure strategy regarding logistics.
The western Kentucky town is close to Interstate-24 with around 15 truck terminals in the vicinity while also only 50 miles east down the Ohio River from the Mississippi River. The latter waterway is directly connected to the Gulf of Mexico.
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