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Key takeaways for the US
On October 3, 2024, a three-day strike at the USEC and USGC ports ended with a tentative wage agreement between the ILA and USMX.
Vessel diversions due to the Suez Canal situation, adverse weather in Asia and Latin America, and an early peak season are causing severe congestion.
East-to-West Coast cargo diversions and early peak seasons have led to congestion at Los Angeles and Long Beach ports, reducing schedule reliability by 10% year-over-year.
Ships are rerouting via the Cape of Good Hope, adding an average of 14 days to transit times and absorbing 6–9% of global capacity.
The 2M Alliance between MSC and Maersk is set to end in 2025.
Port congestion in Asia, USWC ports, and some USEC ports like Charleston is leading to schedule unreliability and potential blank sailing weeks.
The ceasefire between Israel and Hamas has reduced immediate risks in the Red Sea region.
Carriers remain cautious about resuming Suez Canal transits due to ongoing concerns over safety, higher toll fees, and increased insurance costs.
Read on for more in-depth updates.
Ocean Freight Market Updates
Asia → North America
US/CA
Transpacific Trends and Market Updates
Despite entering the slack season, carriers have not announced any capacity reductions for winter deployments.
November shows an 8% capacity increase for both the West Coast and East Coast compared to October.
Demand remains steady as companies prepare for potential disruptions from East and Gulf Coast labor negotiations by the January 15 deadline.
Shipping rates, while slowly declining, are still higher than pre-pandemic levels.
Port Congestion in China
Ports like Shanghai and Ningbo are experiencing significant congestion.
Ports such as Shekou and Yantian are operating more efficiently at the moment.
Mediterranean–India Shipping Route Updates
Carriers are adjusting schedules and reallocating vessels to address high demand, improving reliability and efficiency.
New direct services and strategic adjustments in port calls are helping alleviate congestion and delays.
Carriers are experiencing increased demand for services via the United States West Coast (USWC) due to extended transit times through the Cape of Good Hope and cargo diversions from the recent ILA strike on USEC and USGC ports.
USWC port volumes have risen by approximately 16–20% compared to the same period in 2023.
Port congestion in Asia, USWC ports, and some USEC ports like Charleston is leading to schedule unreliability and potential blank sailing weeks.
Major transshipment ports in Asia, including Busan, Shanghai, Ningbo, and Singapore, are experiencing delays of 14–21 days due to increased transshipment services.
Alternative Transshipment Hubs
Some carriers have switched to alternative transshipment hubs in Malaysia, India, and Colombo.
The shift has caused congestion in these alternative ports as well.
Severe weather and high pre-Lunar New Year cargo volumes have pushed global port congestion to a new three-month high.
Port congestion globally is now impacting 3.3 million TEU or 10.5% of the global fleet.
Chinese ports, including the Yangtze River ports and Pearl River Delta ports, are experiencing extreme congestion ahead of the holidays.
A surge in ships waiting at anchorages is observed across Asia, Europe, and North America, exacerbating delays.
Significant increases in gate and berth activity have been recorded at major Chinese ports due to the pre-holiday rush.
Turkey → North America
On October 3, 2024, a three-day strike at the United States East Coast (USEC) and United States Gulf Coast (USGC) ports ended with a tentative wage agreement between the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX).
The Master Contract was extended until January 15, 2025, to allow further negotiations on wage increases, benefits, and limits on port automation.
The ILA expressed concerns about job security due to automation, fearing potential job losses from increased use of automated systems.
The ILA is also advocating for improved health and retirement benefits for members.
The contract covers most U.S. East and Gulf Coast ports and aims for a new six-year agreement.
Increased dwell times at United States West Coast (USWC) ports since September have prompted many shippers to continue using the West Coast despite congestion, railcar shortages, and disrupted loading patterns.
Port Congestion Updates
Vessel diversions due to the Suez Canal situation, adverse weather in Asia and Latin America, and an early peak season are causing severe congestion.
Major ports like Shanghai, Ningbo, and Singapore are experiencing heavy congestion.
Ports such as Santos and Manzanillo are facing significant delays.
Key ports like Valencia and Algeciras are heavily congested.
East-to-West Coast cargo diversions and early peak seasons have led to congestion at Los Angeles and Long Beach ports, reducing schedule reliability by 10% year-over-year.
Suez Canal Disruption
Most maritime carriers have been avoiding the Suez Canal due to attacks on container vessels launched from Yemen.
Ships are rerouting via the Cape of Good Hope, adding an average of 14 days to transit times and absorbing 6–9% of global capacity.
The longer transit time is affecting trade routes beyond the Red Sea, disrupting global shipping lanes.
Shipping Alliance Updates
The 2M Alliance between MSC and Maersk is set to end in 2025.
MSC partnered with ZIM on the Trans-Pacific lane and Premier Alliance on the Asia–Europe lane.
Hapag-Lloyd and Maersk will launch a new alliance in February 2025, focusing on schedule reliability with a hub-and-spoke network.
The Ocean Alliance (ONE, Yang Ming Line, Hyundai Merchant Marine) extended its agreement until 2032, offering stability amidst industry changes.
North America → Turkey
The ceasefire between Israel and Hamas has reduced immediate risks in the Red Sea region.
Carriers remain cautious about resuming Suez Canal transits due to ongoing concerns over safety, higher toll fees, and increased insurance costs.
Traffic continues to be routed via the Cape of Good Hope as a precautionary measure.
Ports like Rotterdam and Hamburg are experiencing congestion, with risks of worsening if further disruptions occur.
Even if carriers resume Suez Canal transits, reorganizing schedules will take time, as 10% of global shipping capacity is currently diverted to the Cape route.
February Shipping Rates
Rates for the first half of February show a mix of slight decreases and extensions.
The traditional peak season is underway and expected to continue through February and March.
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 45 / 72 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 1.7 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:
1.5 days waiting time for Wando Welch Terminal and 9 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 1.75 days for class 1 vessels and 2.5 days for class 2.
Average gate turn times are 35 minutes for single transactions and 53 minutes for double transactions.
Import dwell time is 4.1 days.
Rail dwell time is 1.1 days.
Houston:
Up to 1.5 days 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 33 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 60 minutes for double transactions.
Loaded import dwell is 3.9 days at Barbours Cut and 3.8 days at Bayport.
Oakland:
Average import deliveries can take up to 9 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 79 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:
6 days waiting time at Husky and 0.5 days at Washington United terminal at Tacoma.
No waiting time in Seattle.
Import rail dwell are 3.7 days at Husky, 3.2 days at Washington United Terminal, and 3 days at T18.
The average gate turn times are as follows: 31 minutes for T18, 24 minutes for Washington United Terminal, and 64 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 27, 28, 29 and 30, 2025.
Los Angeles/Long Beach:
Port of Los Angeles dwell time for local import cargo is 3.7 days.
On-dock rail dwell is 5.4 days.
Import units on the street are averaging at 5.0 / 6.8 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 21-64 minutes, depending on the terminal.
Chassis Pools
All pools are operating as normal except:
Minneapolis / St. Paul - Constrained on 40’ chassis.
Chicago – Deficit on 20’ and 40’ chassis.
Cincinnati - Constrained on 20’ and 40’ chassis.
Cleveland – Deficit on 20’ and 40’ chassis.
Indianapolis - Constrained on 40’ chassis.
Dallas / Ft. Worth - Deficit on 40’ chassis.
Kansas City - Constrained on 40’ chassis.
Omaha – Deficit on 20’ chassis.
St. Louis - Constrained 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.