Market Conditions

TPEB (Trans-Pacific Eastbound)

• Trans-Pacific Eastbound demand has remained flat throughout March, with no measurable growth following the Lunar New Year. Earlier volume forecasts have not been met, and the market remains soft. While floating rates have leveled off, carriers have announced a General Rate Increase (GRI) for April. Meanwhile, most have withdrawn Peak Season Surcharges for the remainder of March.

FEWB (Far East Westbound)

• The Far East Westbound market is beginning to show signs of recovery, as mid-March brought increased booking activity and new bids. Despite this shift, market overcapacity remains, and only one blank sailing has been announced for early April. Freight rates dipped slightly, and most carriers postponed their April GRI efforts until later in the month.

TAWB (Trans-Atlantic Westbound)

• On the Trans-Atlantic Westbound trade, rate adjustments remain mixed. Planned PSS implementations for Southern Europe exports have been delayed to mid-April by several carriers, while North Europe PSS has been withdrawn. East Mediterranean PSS remains unannounced, as demand in the region shows little movement.

Operational Updates

TPEB:

• Equipment availability remains strong at origin hubs across the TPEB network. No major shortages are expected, allowing for continued efficiency in pickup and transit operations.

FEWB:

• A fire aboard the ONE INTEGRITY 006W has disrupted one of the major FEWB services, potentially impacting Southeast Asia transshipments and cargo already staged in Singapore. This incident could lead to notable transit delays for some bookings.

TAWB:

• Central Europe continues to experience persistent equipment shortages, particularly in Austria, Slovakia, Switzerland, Hungary, and southern areas of Germany. East Mediterranean locations, including Mersin, are now also beginning to face similar issues. Carrier-provided haulage remains the recommended solution to navigate these gaps.

Capacity Management

TPEB:

• Capacity on the TPEB trade lane remains healthy, with carrier deployment holding above 80% into April. Despite soft demand, vessel availability is steady, and no significant disruptions have been reported in weekly schedules.

FEWB:

• Oversupply remains the dominant theme in the FEWB lane, with only minimal blank sailings scheduled so far. Space continues to be readily available, offering flexibility for shippers as demand slowly improves.

TAWB:

• After a reduction in blank sailings during March, Southern Europe is expected to see new cancellations in April due to congestion-related vessel delays at ports such as Piraeus, Mersin, and Valencia. These adjustments are aimed at managing service reliability amid increasing port disruptions.

Sources: xeneta.com, maersk.com, yangming.com, evergreen-line.com, supplychaindive.com

U.S. Drayage Capacity Contracts, But Still Exceeds Demand

The U.S. drayage provider count has dropped by 14% from its January 2023 peak, according to LoadMatch and Drayage.com. Despite the decline, overall capacity remains well above 2019 levels. A portion of the shrinkage is linked to driver consolidation under larger carriers. As a result, excess drayage capacity persists nationwide, which continues to place downward pressure on rates.

SC Ports Expands Rail Capacity to Meet Intermodal Growth

South Carolina Ports has completed a $55 million expansion at Inland Port Greer, boosting its rail handling capacity to 300,000 lifts annually. The upgrade includes 9,000 feet of new track and a 50% increase in yard space for containers and chassis. This development responds to strong volume growth since the terminal’s 2014 opening and includes partial funding from a U.S. Department of Transportation grant.