North America Ocean Market Update
DEVELOPING CONCERNS:
Red Sea Crisis
Red Sea Crisis allowed for overcapacity to be absorbed and raised rate levels
The pandemic illustrated the global capacity shortage where low rate levels in one trade lane led to vessel removal and rate increases in others.
Red Sea Crisis did not affect the market in the same manner, indicating pre-existing overcapcity was sufficent to absorb added capacity requirements.
This seems to be a warning sign of impending negative rate pressure and collapse, once the Red Sea reopens, especially with new capacity delivering late 2024
Rates remain elevated and capacity is tight
Baltimore Port Closure
Closure of Baltimore caused ship diversions to other US East Coast Ports
US East Coast port operators appear to have the capacity to handle increased volume and are increasing hours of operatio
Intermodal services are available to accomodate diverted cargo to their respective destinations
Timeline unknown for the Baltimore diversions
Dray and flatbed capacity shortage ensues from Baltimore. Rates increase due to low capacity
Some ports may experience trucking challenges as capacity tightens due to diversions
Vancouver Rail Congestion
Import surge has caused rail container backlogs.
Congestion still impending
Dwell times remain high
LA-LGB Port Backlog
Import surge causing slight backlog
Rail Dwell times are increasing, nearing 7 days average
CAPACITY AND COSTING:
ASIA-USA/CANADA
Imports surged over last month, rates remain steady
Demand has remained stable, Space is available.
Blank Sailings are expected as carriers continue to adjust to Red Sea Situation
Forecast/Bookings recommended 14 day advance notice prior to Cargo Ready Date
SSL Routings continue to adjust to account for lower demand and blank sailings due Red Sea situation
Europe to USA/Canada
Demand has increased
Space availability still tight due to Red Sea Crisis
Forecast/Bookings highly recommended 21 day advance notice prior to Cargo Ready Date
Rates creeping upward, and will continue as capacity tightens
India to USA/Canada
Space is tight and equipment is a challenge, especially at ICD’s
Blank sailings increase due to Red Sea Crisis escalation
ICD points still lack equipment and are experiencing delays via rail
Forecast/Bookings recommended 30-40 day advance notice from Cargo Ready Date
Rates are steadily increasing due to increased demand and carrier operational costs
Transit times are increasing due to rerouting of vessels
To discuss your cargo or solutions on particular lanes, please contact your South East World Wide (Chicago), Ltd. Sales Representative.