Competitive Edge
May 8th, 2024
Stay Current with InterlogUSA
[Webinar date change]: Our May Coffee & Cargo webinar will be on May 22nd at 10am CST. Register here.
Latest Industry Happenings and Market Updates:
IMPORT: Asia to North America (TPEB)
Recent Developments:
- U.S. import volumes from Asia are rising, leading to upgrades in retailers’ first-half 2024 import forecasts.
Rates: General rate increases (GRIs), enacted by ocean carriers at the start of May, are sticking, keeping rates elevated and angled upward.
Space: Space has tightened due to both rising demand and, while not as frequent as the past several months, carrier-enforced blank sailings. Â
Capacity: Generally speaking, capacity is in a healthier state and being utilized productively across the market. Â
Equipment: A terminal at the Port of Los Angeles is draying rail containers to near-dock storages yards as the facility works against a backlog. Since the start of 2024, rail container dwell times (measured in days) have steadily increased at Los Angeles and Long Beach terminals.
TIPS:
- Hold your logistics partners accountable for frequent updates regarding current market conditions and routing impacts.
- As the market shows indicators of heating up, familiar yourself with the potential hurdles that can occur amid cases of tightened capacity and handling delays.
IMPORT: Europe to North America (TAWB)
Recent Developments: For the latest scoop on the transatlantic market, refer to our recent blog!
Rates: Rates continue to gradually increase as the trade recaptures stronger demand.
Space: Space is open.
Capacity: Reassuring demand from U.S. importers has prompted better utilization of available capacity.
TIPS:
- Book at least three weeks prior to the ready date.
- Keep an eye on East Coast labor uncertainty as a coastwide strike could occur in October if no contract is settled between dockworkers and maritime employers.
EXPORT: North America to Asia
Rates: After falling throughout April, rates hit a floor and are since climbing upward in early May.
Capacity: Space remains open, particularly from West Coast ports.
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.
Freight News
Port Chancay (Peru) Construction Almost Finished, Hopes to Enhance South America’s Trade Potential
Construction at Port Chancay (Peru), first began in 2019, is set to be completed at the end of this year.
The Chancay Port Terminal will have four docks, which will allow the Port to handle an annual capacity of 1 million TEUs. The terminal is expected to be the deepest port in Latin America, being able to accommodate ships 400 meters long and 60 meters wide, with an 18,000 container capacity.
South America hopes this will help enhance South America’s trade value, especially for Asia trade, as the goal with this construction is to reduce the distance between China and South America by two weeks.
U.S. Electronic Import Outlook This Year
Last year, containerized imports of electronics in the U.S. decreased for the second consecutive year, reflecting consumer hesitancy towards spending on personal technology due to elevated price inflation.
But could that change this year?
Some say yes. Reason being, devices bought during the beginning parts of the pandemic start to become outdated, prompting consumers to choose newer products with updated features.
We’re nearing the halfway point of this year, and the JOC reports electronic imports are on the rise this year, with shipment volumes increasing 16.6% year-over-year in the first quarter.
Did You Know? With Johnny Cargo!
Johnny Cargo sure knows a lot! Other than fun and random facts however, Johnny also can provide insight into InterlogUSA’s many service and pricing options. He is always available for a quick conversation. Click here to chat with Johnny Cargo.
Interlog 
Insights
Last week we discussed how Canadian rail unions and their employers have reached an impasse in labor negotiations. Plus, the Port of Baltimore eyes a return to ocean freight service by the end of May.
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