IMPORT: Asia to North America (TPEB)

Recent Developments:

• Severe draft restrictions at the Panama Canal are expected to continue into February 2024. This includes reducing the number of vessels transiting the canal each day to just 18 by then. In normal (non-drought) conditions, around 35 ships a day are permitted through the Panama Canal.

Rates: Rates have slid this past week after a series of gradually rising earlier in the month.
Space: Space is generally open, but certain services have seen tightening.
Capacity: Blank sailings are expected to continue into Chinese New Year as carriers remain managing their overcapacity.
Equipment: A shortage in railcar availability has impacted freight movement at West Coast ports. This issue is largely due to an imbalance in westbound and eastbound traffic.

TIPS:

• Hold your logistics partners accountable for frequent updates regarding blank sailings, rate increases, or any other forms of carrier maintenance.
• 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 saw a jolt mid-November, however, are gradually falling again as demand remains too low to prop up increases.
Space: Space is open.
Capacity: Capacity is plentiful with 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 Panama Canal’s deteriorated conditions has led to a routing shift for U.S. farm exports via the Suez Canal.

Rates: After sliding through October, outbound rates have levelled off—remaining relatively low. However, for exports rerouted through the Suez Canal, rates are notably higher than traditional Panama Canal routing.
Capacity: Schedule reliability can be fickle in pockets.
Equipment: A tricky import market has spurred on rail car availability issues.

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.