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Freight market update - 23 January 2025

Beeontrade

·

January 2025

8 min read

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Freight market update - 23 January 2025

From the Editor’s Desk

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Key takeaways for the US

  • COSCO Shipping has been added to a list of companies linked to the Chinese military by the U.S. Department of Defense.

  • U.S. port volumes increased by 10% in September and October compared to the previous year.

  • Liverpool is no longer a direct call for MSC and is now serviced via transshipment across all alliances.

  • The Asia-Europe trade absorbed 59% of the global container fleet’s new capacity in 2024.

  • The ILA and USMX announced a tentative six-year master agreement, successfully averting the strike anticipated for early 2025.

  • Ocean Network Express (ONE), in collaboration with CMA CGM, COSCO, OOCL, and Evergreen Line, will launch three new transatlantic services in February 2025.

Read on for more in-depth updates.

Ocean Freight Market Updates

Asia → North America

US/CA

Transpacific Trends and Market Updates

  • Blank sailings are increasing, with additional blank sailings scheduled for February as carriers prepare for the anticipated demand decrease following the Chinese New Year.
  • Space remains constrained, and forward bookings are recommended for the next 1-2 weeks.
  • Liverpool is no longer a direct call for MSC and is now serviced via transshipment across all alliances.
  • The Asia-Europe trade absorbed 59% of the global container fleet’s new capacity in 2024.
  • This expansion aimed to meet increasing demand, but concerns about overcapacity are emerging.
  • Rates are beginning to soften as carrier expectations for January were not met.
  • January rate increases were unsuccessful, with rates extending from the second half of December into early January.
  • Rates are expected to decrease further in the second half of January as carriers focus on maintaining high utilisation during the Chinese New Year period.

Central China to USA

  • Shanghai (SHA): Rates have increased and are expected to rise further into next week.
  • Ningbo (NGB): The market is stable; booking one week in advance is recommended.

North China to USA

  • Tianjin (TSN): The market is slow, with rates continuing to fluctuate. Booking 4-5 days in advance is advised for securing space.
  • Dalian/Beijing (DLC/PEK): Rates with most airlines remain fluctuating this week. It is recommended to book 6-7 days in advance for volume cargo.
  • Qingdao (TAO): The market is stable, with space availability improving at most US airports. Rates are slightly decreasing, and airlines are releasing spot rates for dense cargo.

South China to USA

  • Guangzhou (CAN): The market is slowing this week but may pick up next week.
  • Shenzhen (SZX): The market is stable, and shipments need to be checked with carriers on a case-by-case basis.
  • Xiamen (XMN): The US market remains stable, with final rates determined on a case-by-case basis.

Turkey → North America

  • The ILA and USMX announced a tentative six-year master agreement, successfully averting the strike anticipated for early 2025.
  • Negotiations concluded just a week before the existing contract extension expired.
  • Discussions heavily focused on automation concerns and job creation initiatives tied to new port technologies.
  • Shippers can now resume normal operations without the need for proactive rerouting to the West Coast.
  • Final ratification of the agreement is still pending approval from ILA and USMX members.
  • Additional details regarding the agreement are expected shortly.
  • There are rate increases for the first half of January on this trade lane.
  • Rates have started increasing in January, with space and equipment availability remaining relatively healthy.
  • Certain inland container depot (ICD) areas are experiencing delays in container handover processes.
  • Traditional peak season demand is ramping up due to North India’s grape season, which is expected to sustain increased activity.
  • Transshipment (TS) ports, such as Colombo, continue to face congestion.
  • Adverse weather conditions at North European ports are disrupting schedules and reducing reliability.

North America → Turkey

  • COSCO Shipping has been added to a list of companies linked to the Chinese military by the U.S. Department of Defense.
  • This designation restricts COSCO Shipping’s access to U.S. markets.
  • It creates potential challenges for the OCEAN Alliance as they face competition in the evolving carrier landscape.
  • In the U.S., the market has shown exceptional strength since September.
  • U.S. port volumes increased by 10% in September and October compared to the previous year.
  • This growth continued through the end of the year, driven partly by anticipatory actions amid concerns over potential strikes and new customs duties.
  • A recent agreement between the ILA and USMX has averted an East Coast port strike.
  • Both parties are operating under their current contract until full ratification.
  • However, tariff increases announced by Donald Trump threaten to disrupt trans-Pacific trade.
  • These include a 10% increase on existing tariffs for Chinese products and 25% on goods from Canada and Mexico.
  • These tariff changes could potentially shrink trade volumes by 8% to 12%.
  • Space remains constrained across key transatlantic routes.
  • Blank sailings continue through January, with nearly all alliances announcing blank sailings up to Week 5 to manage capacity and stabilize rates.
  • Ocean Network Express (ONE), in collaboration with CMA CGM, COSCO, OOCL, and Evergreen Line, will launch three new transatlantic services in February 2025.
  • These services will connect major European ports with the U.S. East and Gulf Coasts.
  • Yang Ming will introduce its expanded 2025 transatlantic network.
  • This network will link major Continental Europe hubs with both the U.S. East and West Coasts.
  • COSCO Shipping has announced enhancements to its transatlantic service offerings.
  • These enhancements, set to begin in February, aim to improve connectivity between Europe and North America.

Terminal Updates

  • Vessels heading to North America via the North Atlantic Sea are expected to have a change in schedule due to severe weather conditions.

 

New York:

  • 2.5 days waiting time expected for APMT, 0.5 days waiting time at Maher Terminals, and up to 4.5 days at Port Liberty Terminal Bayonne.
  • Average gate turn times are 41 / 70 minutes for single and double transactions respectively.
  • APMT - new cranes arrived and are in process of being commissioned.
  • Berth space will still be limited but 2 vessels will now be able to be worked simultaneously.
  • APMT and Maher Terminals will be open on Martin Luther King Day on January 20, 2025.

 

Norfolk:

  • Waiting time for a berth is up to 1.5 days this week.
  • Average gate turn times are 33 minutes for single transactions and 47 minutes for double transactions.
  • One crane is out of service.
  • However, it is expected to be back working next month.

 

Charleston Terminal:

  • 24 hours waiting time for Wando Welch Terminal and 12 hours for North Charleston Terminal.
  • Average truck turn times are 18 minutes at Wando Welch Terminal and 21 minutes at North Charleston Terminal.
  • Average truck turn time at Leatherman is 16 minutes.

 

Savannah:

  • The average waiting time for vessel berth at the terminal is 1.5 days for class 1 vessels and 1.5 days for class 2.
  • Average gate turn times are 34 minutes for single transactions and 54 minutes for double transactions.
  • Import dwell time is 3.4 days.
  • Rail dwell time is 1.5 days.

 

Houston:

  • Up to 1 day waiting time for vessel berthing at Barbours Cut Terminal and no waiting time at Bayport Container Terminal.
  • Average gate turn times at Barbours Cut Container Terminal are 34 minutes for single transactions and 52 minutes for double transactions.
  • Average gate turn times at Bayport Container Terminal are 37 minutes for single transactions and 59 minutes for double transactions.
  • Loaded import dwell is 3.8 days at Barbours Cut and 3.8 days at Bayport.

 

Oakland:

  • Average import deliveries can take up to 12.3 days at TraPac and 4 days at OICT.
  • TraPac has 1900 units out of stock and not available for pick up.
  • They are seeing a lot of appointments not being fully used.
  • Average gate turn times are 96 minutes at OICT and 95 minutes at TraPac.
  • The Port of Oakland has started a bollard and fender replacement project at OICT.
  • The Port of Oakland has started a bollard and fender replacement project at OICT, starting with Berth 55 through Berth 59.
  • The project is expected to finish at the end of February 2025.
  • Berths 55, 56 and 57 are now complete, work has moved to Berth 58.

 

Seattle-Tacoma:

  • 4 days waiting time at Husky and 0.5 days at Washington United terminal at Tacoma.
  • No waiting time in Seattle.
  • Import rail dwell are 4.2 days at Husky, 3.5 days at Washington United Terminal, and 3 days at T18.
  • The average gate turn times are as follows: 34 minutes for T18, 24 minutes for Washington United Terminal, and 90 minutes for Husky.
  • Effective January 6, 2025, T18 has moved to a 5 day a week operation.
  • Gates are open 8am to 4:15pm. Subject to change.
  • Husky is offering continuous hoot gates.
  • Next week’s gates will be January 21, 22 and 23, 2025.

 

Los Angeles/Long Beach:

  • Port of Los Angeles dwell time for local import cargo is 3.8 days.
  • On-dock rail dwell is 5.5 days.
  • Import units on the street are averaging at 5.6 / 7.4 days for 20 ft and 40+ ft containers respectively.
  • Port of Long Beach dwell times for local imports remain at 4-8 days.
  • The average terminal gate turn time is between 22-82 minutes, depending on the terminal.

 

Chassis Pools

All pools are operating as normal except:

  • Chicago – Constrained on 20’ and Deficit 40’ chassis.
  • Cincinnati - Constrained on 20’ and 40’ chassis.
  • Cleveland – Deficit on 40’ chassis.
  • Indianapolis - Constrained on 20’ and 40’ chassis.
  • Pittsburgh - Constrained on 40’ chassis.
  • Dallas / Ft. Worth - Deficit on 40’ chassis.

 

Intermodal Operations

Truck power can be secured within 1-3 days for the majority of locations, including marine terminals, rail ramps, and depots.

Port Status

Range

Port

Vessels at Anchor

Vs Last Week

Waiting Time

Vs Last Week

PNW

Vancouver

0

-

6

+6

PNW

Seattle

0

-

0

-

PSW

Oakland

3

-

2

-

PSW

LA/LB

0

-

0

-

USEC

New York

0

-4

0

-4

USEC

Norfolk

5

+4

2

+1

USEC

Charleston

3

+2

2

-

USEC

Savannah

2

-4

2

-1

USGC

Miami

0

-

0

-

USGC

Houston

0

-

0

-

Final Thoughts

In light of the latest updates and trends, the market is currently in the course of showing robust performance and is equipped with ample capacity and resources. Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions.

To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts. Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.

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