Rate Related Update and Market Conditions
Space Allocation in Asia
Market demand remains steady, with a slight increase in space availability from carriers. Due to potential U.S. tariff changes, carriers may adjust the space-to-demand ratio by using blank sailings to stabilize rates. Here is a breakdown of space allocation across key ports:
- Shanghai:
- U.S. Pacific South: Open space, risk of rollover.
- U.S. Pacific North: Open space, risk of rollover.
- U.S. East Coast: Open space, risk of rollover.
- U.S. Gulf Coast: Open space, risk of rollover.
- Ningbo:
- U.S. Pacific South: Tight space, case-by-case applications; bookings needed 2 weeks in advance, rollover risk.
- U.S. Pacific North: Improved space; bookings needed 1 week in advance.
- U.S. East Coast: Very tight space; bookings needed 2 weeks in advance, rollover risk.
- U.S. Gulf Coast: Very tight space; bookings needed 2 weeks in advance, rollover risk.
- Yantian/Shenzhen:
- U.S. Pacific South: Open space; submit bookings 1 week before cargo ready date.
- U.S. Pacific North: Open space; submit bookings 1 week before cargo ready date.
- U.S. East Coast: Very tight space; bookings needed 2 weeks in advance, rollover risk.
- U.S. Gulf Coast: Very tight space; bookings needed 2 weeks in advance, rollover risk.
Port Strike in Vancouver and Prince Rupert
A strike at Vancouver and Prince Rupert ports over salary and automation issues may redirect cargo to U.S. ports, intensifying congestion in the Pacific Northwest and Southwest regions, especially in Los Angeles and Long Beach.
U.S. Countervailing Duty on Southeast Asian Photovoltaic Products
The U.S. Department of Commerce announced preliminary countervailing duties on photovoltaic products from Cambodia, Malaysia, Thailand, and Vietnam, affecting imports of crystalline photovoltaic cells to the U.S.
Low Water Surcharge for Montreal and U.S. Shipments
A low water surcharge will take effect from November 10, 2024, for shipments to and from Montreal and various other regions, with the U.S. surcharge commencing on December 1, 2024.
COSCO Shipping Holdings and Yantian Port
COSCO Shipping Holdings has become the second-largest shareholder of Yantian Port, bolstering its strategic position in the global shipping market and enhancing collaboration in international logistics and supply chains.
Fraud Attempts Targeting CMA CGM Customers
CMA CGM warned customers of fraud attempts where hackers impersonate the company to alter bank details for payments. Customers are urged to verify bank details only from invoices and report any suspicious requests.
Import Control System 2 (ICS2) Requirements
From December 2024, ONE mandates additional data submissions under ICS2 for self-filers in the EU, including EORI registration. Full compliance with these requirements will become mandatory by April 2025 to avoid shipping delays.
Rate Increases and Announcements
- Leading shipping companies, including MSC, Maersk, ONE, Hapag-Lloyd, and HMM, have announced freight rate hikes on routes to Europe, the Mediterranean, Oceania, the USA, Canada, and Mexico. Effective from mid-November, these adjustments are in response to seasonal demand, operational cost shifts, and the holiday and pre-Spring Festival peak.
- General Rate Increases (GRI) have also been announced by HMM and YML, with rate increments set through December 1, 2024, across multiple container types. These adjustments aim to stabilize rates as demand intensifies.
Port Congestion
U.S. Importers Brace for Trump’s Proposed Tariffs on Key Trade Partners
U.S. businesses are taking precautionary steps as President-elect Donald Trump considers significant tariffs on imports from China and Mexico. Proposed tariffs include a 10% increase on all imports and up to 60% on Chinese goods, potentially escalating costs for businesses and consumers. Some businesses are accelerating orders to avoid anticipated tariff impacts, though concerns remain about storage costs and long-term logistics challenges. Economists warn of possible inflation and strained supply chains, with mixed responses from companies on preemptive inventory planning.
Container Ships Idle Amidst British Columbia Port Lockout
Container ships anchored at British Columbia ports await resolution as labor disputes disrupt operations at Vancouver and Prince Rupert ports. Maersk reports several vessels held in the area due to the port lockout, with ripple effects expected in the wider supply chain. In Montreal, a similar strike is halting rail services at marine terminals, compounding issues for intermodal shipping routes. Stakeholders hope for a swift labor agreement to minimize economic and logistical impacts on North American trade.
North American Investments Offer Relief for Industrial Gas Suppliers Amid Market Uncertainty
Industrial gas suppliers like Linde and Air Liquide are looking to North American projects as a stabilizing force in the face of global economic pressures. Investments such as Linde’s $2 billion expansion in Alberta aim to support energy sectors needing specialized gas supplies. Despite challenges from geopolitical factors and lower commodity prices, these projects provide a promising avenue for revenue, particularly in North America’s more stable market environment, offering relief for suppliers grappling with international uncertainties.
Brazil’s Guarulhos Airport Faces Potential Cargo Collapse Amid Overwhelming Volume
Cargo operations at Brazil’s Guarulhos Airport are nearing critical levels, with overcrowded warehouses and essential equipment shortages contributing to processing delays. Airline associations are urging the federal government to implement a five-day embargo on non-essential cargo to alleviate the situation. They have also called for emergency staffing and alternate routing options to ensure safe and efficient cargo handling. With international trade impacted, immediate actions are seen as crucial to restore flow and avoid operational shutdowns.
