North America Import Ocean Freight Update

Ocean Freight Update

Asia to USA/Canada

  • Demand has softened

  • Space is available. Blank Sailings are expected thru CNY

  • Trucking and intermodal has loosened significantly

  • Rates remain soft

  • Forecast/Bookings recommended 14 day advance notice prior to Cargo Ready Date

  • SSL Routings continue to adjust to account for lower demand

Europe to USA/Canada

  • Demand has declined

  • Space availability has opened up

  • USWC/USEC Congestion has improved, as well as railway transit

  • More capacity is being added into the Mediterranean

  • Forecast/Bookings highly recommended 21 day advance notice prior to Cargo Ready Date

  • Rates continue downward trend, and will continue as capacity is added and demand drops

India to USA/Canada

  • Space is open but equipment is a challenge due to reduced imports from China

  • Blank sailings due to lunar new year

  • ICD points still lack equipment and are experiencing delays

  • Forecast/Bookings recommended 30-40 day advance notice from Cargo Ready Date

  • Rates are declining slowly

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

North America Import Ocean Freight Update

Ocean Freight Update

Asia to USA/Canada

  • Demand has softened significantly

  • Space is available, tighter in some regions. Blank Sailings are expected

  • Congestion still at major US points like LA/LGB (2wk Dwell)

  • Trucking and intermodal still tight from rail ramps in Midwest

  • Rates continue to decline from most regions

  • China still under Zero Tolerance Covid Restrictions

  • Forecast/Bookings recommended 14 day advance notice prior to Cargo Ready Date

  • SSL Routings continue to adjust to account for lower demand

Europe to USA/Canada

  • Demand is declining slowly

  • Space availability remains tight, especially to USEC

  • USWC/USEC Congestion is improving

  • Equipment still major issue at EU origin points, specifically from the Mediterranean

  • Delays due to origin port and transship port congestion has improved slightly

  • Forecast/Bookings highly recommended 21-28 day advance notice prior to Cargo Ready Date

  • Rates are seeing slight decline but not at pace of other lanes

India to USA/Canada

  • Space and equipment is improved

  • Rollovers/delays are minimal

  • ICD points still lack equipment and are experiencing delays

  • Forecast/Bookings recommended 30-40 day advance notice from Cargo Ready Date

  • Rates are declining slowly

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

North America Import Ocean Freight Update

Ocean Freight Update

Asia to USA/Canada

  • Demand has softened slightly

  • Space is available, tighter in some regions. Blank Sailings on some lanes

  • Congestion has eased at both USEC and USWC ports, but still in flux

  • Trucking and intermodal options opened up

  • Rates declining from most regions

  • China still under Zero Tolerance Covid Restrictions

  • Forecast/Bookings recommended 14-21 day advance notice prior to Cargo Ready Date

  • SSL Routings continue to adjust to account for lower demand

Europe to USA/Canada

  • Demand is high

  • Space and equipment availability remains tight to USEC

  • USWC/USEC Congestion is improving

  • Delays due to origin port and transship port congestion continues

  • Forecast/Bookings highly recommended 45-50 day advance notice prior to Cargo Ready Date

  • Rates are seeing slight decline but not at pace of other lanes

India to USA/Canada

  • Space and equipment is improved

  • Rollovers/delays are minimal

  • ICD points still lack equipment and are experiencing delays

  • Forecast/Bookings recommended 50-60 day advance notice from Cargo Ready Date

  • Rates are declining

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

FREIGHT RAILROADS AND UNIONS REACH TENTATIVE AGREEMENTS

The National Carriers’ Conference Committee (NCCC), which represents the nation’s freight railroads in national collective bargaining, today issued the following statement:

We are pleased to announce that the nation’s freight railroads have reached tentative agreements with the Brotherhood of Locomotive Engineers and Trainmen Division of the International Brotherhood of Teamsters; the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division; and the Brotherhood of Railroad Signalmen. Together, the three unions represent approximately 60,000 railroad employees.

See full statement here.

US Rail Labor Update

Update September 14, 2022

A tentative agreement has been reached with 10 out of the 12 unions. Negotiations continue during the ‘cooling off’ period which ends September 16, 2022 at 12:01 AM. Rail vendors have been preparing for a potential shut down.

For your reference, please refer to this link to learn how the cargo or rails have been impacted as of September 14, 2022.

Additionally, the U.S. continues to hosting talks with union, railroads to avert shutdown.

US railroads to begin cutting service, ahead of possible strike

As reported by JOC.com, Friday September 9, 2022, US freight railroads will begin to reduce service effective today September 12, in fears of a possible strike on Sept. 16, 2022.

The country’s two largest rail unions have failed to agree on a new contract this week and told management they are unwilling to promise they won’t walk off the job, according to a customer advisory sent to shippers late Friday by Norfolk Southern Railway. The developments were confirmed in a statement from the Association of American Railroads.

The timing of a reduction in service ahead of a possible strike is not good as international supply chains are clogged with containers piling up at intermodal terminals in Chicago, Dallas, Memphis, Kansas City, and Ohio Valley.

Labor action would also cause disruptions in ports across the US because a sizable share of containers is moved off terminals on trains, including from the ports of Los Angeles and Long Beach, New York and New Jersey, Savannah, Seattle-Tacoma, and Virginia.

SEWW will continue to monitor the situation. Please contact with your SEWW Sales Representative to discuss potential for delays and/or alternative solutions.

North America Import Ocean Freight Update

Ocean Freight Update

Asia to USA/Canada

  • Demand has softened slightly

  • Space is available, tighter in some regions

  • Congestion has eased at both USEC and USWC ports, but still in flux

  • Trucking and intermodal options opened up

  • Rates remain elevated relatively and expected to increase with Traditional Peak Season on the horizon

  • Shanghai Covid Restrictions and International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) labor negotiations commence cause some uncertainty

  • Forecast/Bookings recommended 21-28 day advance notice prior to Cargo Ready Date

  • SSL Routings continue to adjust

Europe to USA/Canada

  • Demand is high

  • Space and equipment availability remains critical, to both USWC and USEC

  • USWC Congestion is improving

  • Congestion across USEC ports, specifically Savannah and Houston are heavy but some signs of improvement

  • Delays due to origin port and transship port congestion continues

  • Forecast/Bookings highly recommended 45-50 day advance notice prior to Cargo Ready Date

  • Rates remain elevated, due to high demand.

  • Some Mediterranean ports implement port storage charges

  • Inland capacity tight

  • Inland FSC increases in place

India to USA/Canada

  • Space and equipment availability is still critical

  • Rollovers/delays continue, but show signs of improvement

  • ICD points still lack equipment and are experiencing delays

  • Forecast/Bookings recommended 50-60 day advance notice from Cargo Ready Date

  • Rates remain elevated

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

North America Import Ocean Freight Update

GLOBAL CONGESTION AND EQUIPMENT SHORTAGES CONTINUE

Asia to USA/Canada

  • Demand remains extremely high

  • Space is under capacity and equipment is in critical supply

  • Congestion persists, 100+ vessels waiting for berth in LA/LGB

  • Intermodal strains increase, recommend terminating at coastal ports to avoid intermodal delays and utilizing trucking services inland

  • Rates remain elevated and expected to increase

  • Forecast/Bookings recommended 30-45 day advance notice from Cargo Ready Date

Europe to USA/Canada

  • Space and equipment availability is critical, especially to USWC

  • Overbookings/Rollovers Persist, Some Blank Sailings/Ports Omitted

  • Delays due to origin port congestion worsen and expected as winter weather hits the Atlantic

  • Forecast/Bookings recommended 45-50 day advance notice from Cargo Ready Date

  • Rates remain elevated

India to USA/Canada

  • Space and equipment availability is critical as India approaches peak season

  • Rollovers/delays continue, Some Blank Sailings/Ports Omitted

  • Inland Depots severely congested and short on equipment

  • Forecast/Bookings recommended 50-60 day advance notice from Cargo Ready Date

  • Rates continue to increase

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

LA/LGB Port Authority Penalty Update-Container Dwell Fees

Please be advised of the following updates regarding the LA/LGB Port Authority Container Dwell Fees:

  • When will the fee come into effect?

The program went into effect on November 1, 2021, but penalties will not start to be assessed until November 29, 2021. Please note that this was previously planned to be assessed on November 22. Here is the announcement on the Port of Los Angeles website, as well as the Port of Long Beach website.

Should progress be made before the assessment date of November 29, it is up to the discretion of the Executive Directors of the Ports on whether to extend the assessment date further. The progress is measured by the Ports daily. The information for the Port of Los Angeles is here. The information for the Port of Long Beach is here.

  • Will the fee apply to containers retroactively to November 1, 2021?

The charge will apply to those containers on the terminal as of November 29, 2021, that are past the dwell times of 8 days for Import (truck Moves) and 5 days for Intermodal (Rail) Import.

For all existing overdue import containers (regardless of the number of days that they have been at the terminal), November 29 will count as the 9th day (or 6th day for intermodal) and will start at USD 100. Containers discharging after November 29 will be charged fully as per the structure mentioned below.

  • How will this fee be collected?

We are continuing to work on the most efficient process and will clarify this in the near future with another posting.

Please know that we will continue to keep you informed of any developments in this situation. If you should require additional information, please contact your South East World Wide, Ltd. Sales Representative.

Tacoma, USA: Husky Terminal and Washington United Policies effective November 1 and 15, 2021, Respectively

Following Port of LA/LGB lead, Tacoma’s Husky Terminal announced on their website, they have introduced an emergency surcharge effective November 1, 2021 levied on local import containers that have exceeded 15 calendar days on the terminal. This will be a USD 315 Long Stay Rehandling Charge.

Additionally, Tacoma’s Washington United Terminals (WUT) announced on their website, they have introduced an emergency surcharge now effective November 15, 2021 (originally November 8, 2021) levied on local import containers that have exceeded 15 calendar days on the terminal. This will be a US$ 310 Long Stay Rehandling Charge.

As per the terminal notice, units will be placed on hold and payment will be due prior to making an appointment. There is a FAQ on the WUT website referring to eModal for payment.

This is a port terminal announced and levied charge which, paid directly to the terminal, will be for the account of the merchant.

If you have any questions regarding this or other services, please contact your South East World Wide, Ltd. Sales Representative.

Los Angeles / Long Beach Port Authority Policy effective November 1, 2021

Following our advisory sent on October 28, 2021 regarding the new government mandated PSW Emergency fee, all members of the sea logistics community are still actively working to gain a full understanding of all the issues at hand. As more information becomes available, we will do our best to keep you informed. Meanwhile, please find answers to the most frequent questions we have been asked:

1. When will this be effective?

The fee program will go into effect on November 1, 2021. However, penalties will not be assessed until November 15, 2021. A grace period has been provided to allow shippers some time to clear the docks. If substantial progress is made, it will be at the discretion of the Port Executive Director to extend this effective fee assessment date as they deem appropriate. 

2. Does it affect containers already at terminal (retroactive charges) or just containers discharging November 1st and beyond?

It has been advised that, charges will be applied retroactively for all containers at terminal effective November 15, 2021

3. How will the fee be charged?

The fee will be assessed on all containers dwelling for 9 days or more on truck moves or for 6 days or more for rail bound containers. The 9th day and 6th day respectively will be the first charge day.

4. What are the fees?

The fee will be $100 for day 1, $200 for day 2, $300 for day 3 and so on.

5. Will it be applied on calendar or working days? 

The fee will be applied based on calendar days, inclusive of Saturdays, Sundays, and Holidays.

6. How will the rail delays be managed? 

Carriers are still working with the terminals to have this clarified but to the best understanding, the fee will still be applied.

7. Will the charge be applied to containers where the rail providers are metering the flow of freight out due to congestion at inland rail points?

Carriers are still working with the terminals to have this clarified but to the best understanding, yes it will be applied.

8. Will there be a maximum or cap on the fee, or will the charge continue for the duration the container is on terminal/rail?

There is no maximum cap on the fee that will be applied.

9. Will containers held for Customs Exam be exempt?

No, it is anticipated that all containers to be subject to the fee regardless of release status.

10. Will the new surcharge be applicable for door moves where carrier controls the move? 

Even for carrier moves, the fee will be applicable if the delay was caused by a line or customs hold, or when the cargo is subject to an exam or any government inspection.

11. Who will bill the new surcharge and how will it be collected?

We expect the Port Authorities to bill the carrier and for the charge to either be billed directly to us/customers or for the terminal operator to collect the same on our behalf prior to the release of cargo.

12. What if I am unable to pick up my container due to a lack of chassis, will the emergency surcharge be waived? 

Unfortunately, the fee cannot be waived due to lack of chassis. For CY and Door moves, the trucker nominated by the customer is responsible to secure chassis.

13. Who is responsible for the fee if the container is not available by the terminal?

We are actively working with the terminals to clarify. 

14. If an appointment pickup time is not available, how is this fee fairly assessed (on a per-day basis) and handled?

We are actively working with the terminals to clarify. 

15. For holiday scheduling, will the fee window be adjusted?

We are actively working with the terminals to clarify.

We understand how difficult this can be and are working to get a better understanding of the fees and process, as well as an understanding of how to possibly mitigate this extra burden.

Please contact your South East World Wide, Ltd. Sales Representative for further information.
 

North American Port Congestion Surcharge Reminder Notice

Due to critical port congestion at North American ports, particularly in LA/LB. Carriers filed port congestion surcharges onto the shipment due to these extenuating circumstances.

Listed here is the most updated list by Steamship Line of the upcoming Port Congestion Surcharge (as of July 28, 2021).  The Port Congestion Surcharge is based on the discharge date.  Port Congestion Surcharge will apply to your current bookings if the shipment arrives at the destination port on/after the effective date. We are following up closely with all carriers and will keep you posted on any updates. 

North America Import Ocean Freight Update

GLOBAL CONGESTION AND EQUIPMENT SHORTAGES CONTINUE

Asia to USA/Canada

  • Demand remains extremely high

  • Forecast/Bookings recommended 30-45 day advance notice from Cargo Ready Date

  • Space is under capacity and equipment is in critical supply

  • Congestion persists, disruptions due to Covid expected to continue

  • Intermodal strains increase, recommend terminating at coastal ports to avoid intermodal delays and utilizing trucking services inland

  • Rates continue to increase, August 15 GRI implemented

  • Destination Port Congestion Charges Levied; varies by carrier

Europe to USA/Canada

  • Space and equipment availability is poor to critical

  • Overbookings/Rollovers Persist

  • Delays due to origin port congestion worsen

  • Forecast/Bookings recommended 45-50 day advance notice from Cargo Ready Date

  • Rates continue to increase, September GRI expected

India to USA/Canada

  • Space and equipment availability is poor to critical

  • Rollovers/delays continue

  • Inland Depots severely congested and short on equipment

  • Forecast/Bookings recommended 50-60 day advance notice from Cargo Ready Date

  • Rates continue to increase, September GRI expected

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

North America Import Ocean Freight Update

Global Congestion and Equipment Shortages Continue

Asia to USA/Canada

  • Bookings recommended 28-42 day advance notice from Cargo Ready Date

  • Space is under capacity and equipment is in critical supply

  • Congestion persists, disruptions due to Covid expected to continue

  • Intermodal strains increase, recommend terminating at coastal ports to avoid intermodal delays and utilizing trucking services inland

  • Rates continue to increase, July 15 GRI implemented

Europe to USA/Canada

  • Space and equipment is critical

  • Blank sailings to USWC ensue

  • Delays due to origin port congestion worsen

  • Bookings recommended 45-50 day advance notice from Cargo Ready Date

  • Rates continue to increase

India to USA/Canada

  • Space is still tight and equipment is still in short supply

  • Rollovers/delays highly likely due to recent Covid restrictions and backlog

  • Bookings recommended 40-50 day advance notice from Cargo Ready Date

  • Rates continue to increase

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

North America Import Ocean Freight Update

Global Congestion and Equipment Shortages Continue

Asia to USA/Canada

  • Bookings recommended 28-42 day advance notice from Cargo Ready Date

  • Space is under capacity and equipment is in critical supply

  • Blanks sailings increase, Congestion Worsens, Yantian disruptions due to Covid outbreak expected to continue for several weeks

  • Rates continue to increase

Europe to USA/Canada

  • Space and equipment is still tight but improving at major ports

  • Some port of call omissions, some carriers refusing bookings, blank sailings ensue

  • Reliability improving

  • Bookings recommended 30-35 day advance notice from Cargo Ready Date

  • Rates continue to increase

India to USA/Canada

  • Space is still tight and equipment is still in short supply

  • Rollovers/delays highly likely due to recent covid restrictions

  • Bookings recommended 30-35 day advance notice from Cargo Ready Date

  • Rates continue to increase

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

North America Import Ocean Freight Update

Global Congestion and Equipment Shortages Continue

Asia to USA/Canada

  • Bookings recommended 21-24 day advance notice from Cargo Ready Date

  • Space is tight and equipment is still in short supply

  • Premium service is still best opportunity for cargo loading and avoiding rollovers

Europe to USA/Canada

  • Space is extremely tight and equipment is still in short supply

  • Rollovers/delays highly likely

  • Some carriers refusing bookings, some blank sailings

  • Bookings recommended 28-35 day advance notice from Cargo Ready Date

  • GRI implemented along with increase in Emergency Container Imbalance Surcharges

India to USA/Canada

  • Space is extremely tight and equipment is still in short supply

  • Rollovers/delays highly likely

  • Bookings recommended 21-24 day advance notice from Cargo Ready Date

  • GRI implemented along with increase in Emergency Container Imbalance Surcharges

To discuss your cargo or solutions on particular lanes, please contact your South East World Wide, Ltd. Sales Representative.

Global Vessel Reliability Declines Again-Asia

US Import volumes from Asia have continued to surge since last summer, reaching record highs, a major contributing factor in the congestion issues plaguing US Ports. Depending how long the demand will persist, it is expected the congestion will continue well into the late spring, early summer.

As reported on JOC.com, global container vessel reliability has continued to decline for the past 6 straight months. Last month, Sea-Intelligence reports, reliability fell to 33.5%, its lowest ever recorded.

On the transpacific trade, reliability was at 13.8% to the USWC and 21.5% to the USEC.

The delayed vessels are a major contributing factor as to why the ports are backlogged. For USWC, handling 50% of all US Imports, average vessel delay increased to 10.28 days and to 5.53 days on the USEC.

The vessel delays are just the tip of the iceberg of the havoc wreaked on the supply chain. Vessels waiting for berth at the ports, congested terminals, containers sitting at the terminals, truckers experiencing long lines to retrieve or return equipment, and equipment shortages have increased significantly.

We at South East World Wide, Ltd. are committed to keeping watchful eye on your cargo and keen on keeping you posted every step of the way. If you have any questions regarding your cargo or future planning, please reach out to your South East World Wide, Ltd. Sales Representative.

Increased Volumes, Booking Challenges, Port and Rail Congestion - Update January 2021

The USA import surge continues to cause logjams throughout the global supply chain.  For the week ending January 8, there were 35 vessels at anchor awaiting berths at Los Angeles/Long Beach. According to carrier and terminal sources, the following issues persist:

  • Terminals are short staffed and alternating shifts due to COVID-19

  • The staffing and hours issues have a snowball effect:

    • Trucker turn times have increased

    • Internal terminal transfers are slower

    • Number of daily appointments reduced

    • Reduced terminal space due to congestion

As reported by the JOC, the delays are perpetuating problems for rail operations at the terminals as well. LA/LGB terminals are currently experiencing an average 16+ day delay. Additionally, the capacity limits in certain markets due to increased demand and trucker shortages are causing additional backlogs and delays. As a result of these rail delays, some carriers have limited or cancelled their IPI service and are prioritizing Cy/Cy bookings over IPI bookings. Prioritizing Cy/Cy bookings will theoretically enable the carriers to turn containers faster.

 
The below stats compiled from some of our suppliers, provides current lead times to secure dray carriers and to arrange container delivery (lead-time refers to securing of power equipment, not the dwell time in the port or terminal):  

Markets Averaging 12+ Days:
Savannah – Memphis – Baltimore – Atlanta – Norfolk – New York
 
Markets Averaging 7+ Days:
Boston – Cincinnati – Buffalo – Chicago – Kansas City – Tacoma – Seattle – Dallas – LA/LGB – Philadelphia – Houston – Council Bluffs – Charleston – Charlotte – Jacksonville –

Miami / Port Everglades

Markets Averaging 4+ Days:
Cleveland – Columbus – Detroit – Indianapolis – Minneapolis – Pittsburgh – Birmingham – Greensboro, NC – Greer, SC – Huntsville, AL – Louisville – Denver – Santa Teresa – Laredo – Portland – New Orleans - Oakland

Congestion persists at all main terminals and at inland rail ramps. Please see below for current averages as of the first week of January:
 
Halifax – Average 5.9 days (T), 5 days at ramp:  total 10.9 days
Montreal – Average 2.6 days (T), 6.1 days at ramp:  total 8.7 days
Vancouver – Average 2.5 days (T), 12.9 days at ramp:  total 15.4 days
New York – Average 6.1 days (T), 3.1 days at ramp:  total 9.2 days
Charleston – Average 3.2 days (T), 3.2 days at ramp:  total 6.4 days
Savannah – Average 4.9 days (T), 2.8 days at ramp: total 7.7 days
Norfolk – Average 3.8 days (T), 5.6 days at ramp:  total 9.4 days
Kansas City – 7.2 days ramp
Chicago – 8.1 days ramp
Memphis – 5 days ramp
Council Bluff – 7.4 days ramp
Detroit – 6 days ramp
 
It is anticipated that this import surge will continue as long as COVID-19 forces North American consumers to spend their income on merchandise rather than on services and experiences.
 
Regardless, we are here for you and are working diligently on minimizing the impacts to your operations. If you have any questions, please contact your South East World Wide, Ltd. Sales Representative.

Chronic Equipment Shortages, Vessel Delays, Port Congestion and Rail Delays; Asia, Europe and USA

Container News reported on November 6, 2020, that equipment shortages at a majority of Chinese ports have intensified over the past few weeks, with vessel delays adding to the congesting problems. US West Coast Ports and Midwest terminals such as Chicago Rail Ramps, in particular, are struggling to cope with the surge and bottleneck occurring at the ports.

Many containers arriving at the ports, specifically LA/LGB, are needing transport inland which has tied up chassis equipment, leaving containers to pile up at the port awaiting to be pulled, causing additional congestion issues. Picking up containers at the ports has become more problematic, as truckers are facing long lines and spending more time searching/waiting for equipment and waiting for congestion to ease to retrieve the containers.

Additionally, steamship line performance is at all time low. Sea-Intelligence reports, ‘Vessel schedule reliability, for all the carriers, has taken a hit. Global schedule reliability plummeted in 2020‑Q3 to 65.0%, which is the lowest global quarterly schedule reliability recorded by Sea‑Intelligence and is lower by a considerable ‑14.6 percentage points year-on-year, nine of the top 15 lines are recording reliability statistics of 65% or below, with one carrier below 50%.”

China Ports are just as congested for many of the same reasons. Even if you get space on a vessel, some vessels are leaving less than full due to equipment shortages, causing backlog of shipments, that could take several weeks to resolve.

According to Dynamar, a Dutch consultancy firm, “Transpacific routes are counter intuitive. To the USEC, capacity has risen by 16% (August 20/September 19) and by 8% to the USWC. With demand struggling, an increase in supply should lead to pressure on rates, which, as we can see, has not happened. From May onwards Pacific rates have been increasing and up to week 43 they have been at 105% higher, on average. On the Asia to Europe trades, “From the Far East to Europe, the average weekly rates for the first 43 weeks of this year are around 23% higher than for the same period of 2019.”, said Dynamar.

Never before has there been a situation of “No space, no equipment, no service.” November thru December is not likely to get any better and with CNY just around the corner, never has there been a better time to plan ahead.

Full article can be found at: https://container-news.com/port-congestion-caused-by-chronic-box-shortages-in-asia-europe-and-us/

To review how these issues will affect your supply chain and discuss how South East World Wide, Ltd. can help navigate these difficult waters, please contact your South East World Wide, Ltd. Sales Representative.

Trans-Pacific Container Lines Boost Capacity, Container Shortages and Guaranteed Space

As reported by JOC.com in Maritime news, transpacific carriers have agreed to increase ‘capacity by at least 25 percent over the next 3 weeks’. However, with a continued increase in imports, this still poses challenges to get shipper containers on perspective vessels.

‘According to Sea-Intelligence Maritime Analysis, space availability on vessels leaving Asian load ports this month will improve as carriers deploy extra-loaders and reinstate blank sailings, increasing capacity 26 percent to the West Coast and 31 percent to the East Coast. The capacity increases cover the four-week period that began with Golden Week in China on Oct. 1’

Imports have surged for personal protective equipment (PPE), home office furniture, computer equipment, building materials, and now for holiday season merchandise. Additionally, big box stores are recovering from depleted summer stock. This is causing space to remain tight, despite the additional capacity. The challenges are unfortunately expected to last through November, possibly into early December.

Another concern and reason rates are remaining high on Trans-Pacific trade is the fact there is a shortage of 40GP and 40HC equipment on this trade lane. Steamship Lines are imposing additional fees on shippers for reserving equipment and repositioning containers in various Chinese ports.  

It has been reported, rates between $500-$2000 per container have been requested from several SSL’s for reserving equipment and priority loading. Shippers need to evaluate the necessity to go with no roll guaranteed loading for premium price or accept the ‘likely to roll’ service.

Strong demand and tight capacity, squarely puts the trans-pacific steamship lines in the driver seat. Please review with your South East World Wide, Ltd. Sales Representative how you can minimize the impact of these challenges on your operation. We offer a wide range of carrier and transit time options to help you meet your financial and operational goals.