Rate Related Update and Market Conditions
Market Overview
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Space Allocation
- USWC (LA/LB): Space will open after October, but capacity remains tight due to blank sailings earlier in the month, leading to higher loading volumes per vessel.
- USEC (SAV/NYC): Space is available with improved capacity as vessels return to Asia after the ILA strike. Containers remain on the East Coast, easing rate pressure.
- GULF (MOB/TPA): Space availability mirrors that of the East Coast, with open capacity and stable operations.
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Voyage Suspension Updates
The 2M Alliance (MSC and Maersk) has suspended 8 round trips between Asia and the U.S. East Coast and Gulf of Mexico, citing congestion from recent port strikes. THE Alliance and OCEAN Alliance have also canceled several voyages, with port delays disrupting cargo handling and vessel turnaround times.
Rate Predictions
- USWC (LA/LB): Rates are expected to increase slightly as space tightens towards the end of October.
- USEC (SAV/NYC): Rates continue to decline, with East Coast pricing now lower than the West Coast.
- Gulf: Rates remain stable with no significant changes forecast.
- General Rate Increase (GRI): Carriers have announced a GRI effective until November 15th, 2024, which may impact pricing across routes.
Port Congestion
Carriers Boost Rates to Target Pre-Lunar New Year Demand
Carriers are increasing blank sailings and implementing rate hikes on the Asia-Europe trade route to capitalize on early demand ahead of the Lunar New Year. Shippers had previously held back cargo, anticipating further rate drops, but forwarders now predict a rise in rates from October as capacity tightens.
Chicago Cargo Theft Highlights Intermodal Security Concerns
The recent cargo theft from a Union Pacific train in Chicago has underscored vulnerabilities in intermodal transport, particularly during handoffs between railroads. The targeted theft of select containers suggests potential insider information, raising concerns about the security of high-value goods during urban interchanges.
India’s Project Cargo Growth Faces Clearance and Equipment Challenges
India’s infrastructure boom is driving demand for project cargo, with developments in transport and port facilities. However, shippers are reporting delays due to clearance bottlenecks and equipment limitations at key ports, which could hamper the anticipated growth in cargo movement.
Port of Long Beach Achieves Record Growth
The Port of Long Beach experienced its busiest quarter on record, driven by increased shipments of holiday goods and cargo movements ahead of labor negotiations on the East and Gulf coasts. In September alone, the port handled 829,499 TEUs, marking four consecutive months of year-over-year cargo growth.