Rate Related Update and Market Conditions
Market Update:
- Space Allocation:
- US Election Impact: Potential shifts in U.S. tariff policies may lead customers to expedite shipments in preparation.
- Asia to USWC (Los Angeles/Long Beach): Space remains tight until mid-November for Taiwan and until early November for China. New bookings are at risk of being rolled.
- Asia to USWC (Tacoma/Seattle): Limited space until the end of October for Taiwan and China; new bookings may face delays.
- Asia to USEC (East Coast): Space is open and available for new bookings.
- Asia to U.S. Gulf: Space remains open for new bookings.
- Gemini Alliance (Hapag and Maersk):
- Due to disruptions in the Red Sea, Gemini Alliance aims to improve punctuality by reducing the number of ports on Asia-to-Europe routes and utilizing larger vessels.
- ONE Expands Service to Jacksonville:
- ONE will add the Jacksonville (JAX) port to its EC2 route starting February 2025, enhancing East Asia-North America connections.
- New Route: Xiamen – Yantian – Ningbo – Shanghai – Pusan – Panama – Manzanillo – Savannah – Charleston – Jacksonville – Manzanillo – Panama – Pusan – Xiamen.
- Yang Ming’s New Europe Routes Launching January 2025:
- NEA Route: London Gateway – Antwerp – Rotterdam – Piraeus – Istanbul – Gebze – Gemlik – Aliaga – Piraeus – London Gateway.
- NEL Route: London Gateway – Rotterdam – Hamburg – Antwerp – El-Dekheila – Damietta – Mersin – London Gateway.
- CMA’s Los Angeles IPI Service Suspension:
- CMA will halt receiving cargo to inland points (IPI) via Los Angeles due to rail congestion and diversions. Despite delays, port operations remain unaffected, though rail logistics face challenges.
Rate Predictions:
- GRI Announcement:
- Carriers have announced a General Rate Increase (GRI) effective November 15, 2024, which may impact pricing across key routes.
Port Congestion
Brazil’s Dockworkers Strike Over Threatened Labor Rights
Dockworkers across 32 ports in Brazil staged a 12-hour strike on October 22, protesting proposed amendments to the 2013 Ports Law, which would allow outsourcing and threaten established labor rights. Organized by the CONTTMAF union and supported by the International Transport Workers’ Federation (ITF), the strike aims to defend workers’ safety and rights. Labor representatives are concerned about the impact of these changes on port operations, worker safety, and fair employment practices. The strike follows other global labor actions in ports across the U.S., Australia, and Turkey.
North-South Trade Faces Delays Amid Labor Strikes in the Americas
Shippers on North-South trade routes are grappling with significant delays and schedule disruptions following the early October strikes at U.S. East and Gulf coast ports. The impact has rippled down to South American ports, particularly in Brazil, Argentina, and Uruguay, where cargo handling is now further hampered by ongoing labor strikes. Delays are intensifying at the Brazilian Port of Santos as vessels arriving from the U.S. face disrupted schedules, affecting cargo flows and increasing port congestion.
Antwerp-Bruges Expands Container Market Share in Q3 2024
Antwerp-Bruges recorded a 6.8% rise in container volumes, handling 10.15 million TEUs in the first nine months of 2024. The port gained 0.8% market share, now controlling 30.7% of container traffic across northern European ports. A 12.3% increase in throughput during the third quarter, driven by early peak season demand, contributed to this growth. This performance reinforces Antwerp-Bruges’ position as a key logistics hub, despite declines in other cargo segments throughout the year.
Limited Air Freight Capacity Complicates Shift from U.S. Ports
The recent U.S. port strikes are driving increased demand for air freight at a time when capacity is already constrained. With air cargo volumes surging due to robust trans-Pacific and Asia-Europe e-commerce demand, carriers are reallocating freighters to meet demand from Asia. Industry experts warn that this limited capacity could lead to logistical challenges for companies seeking alternatives to disrupted ocean freight services along the U.S. East and Gulf coasts.