Sung Wook Lee’s Post

U.S. ports, particularly on the West Coast, could see a surge in cargo volumes in the coming weeks as shippers re-route cargo to avoid Red Sea disruption from Houthi attacks on shipping. Industry participants reported that they are starting to see isolated challenges and anticipate increased congestion at some U.S. container ports in the next four to six weeks due to shippers rerouting cargo to avoid the Red Sea. U.S import container import volumes have been largely spared by disruption in the Red Sea, considering only a small portion of U.S. container imports come through the Suez Canal. However, that could change so as shipper reroute volumes to avoid longer voyages via the Cape of Good Hope.

Inbound cargo volume at the nation’s major container ports is expected to see year-over-year increases through the first half of the year despite attacks on ships in the Red Sea, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

With market conditions heating up over the last several weeks, this year's peak season for U.S. import activity will likely be a hectic affair. Check out today's blog for a closer look at how to prepare: . . . #peakseason #import #internationalshipping #containershipping #carrier #rates #spotmarket #capacity #surcharges #oceanfreight #FCL #LCL #NVOCC #freightforwarding #InterlogUSA

The current aggravated process of cargo moving through U.S. ports is costing importers and exporters hundreds (or some even thousands) per shipment . Although the FMC and stakeholders have made huge strides to reduce costs and increase transparency in the past few years, there are many gaps still missing. Here are a few GGL is focused on:   1. Stopping the clock on import per diem AND providing reasonable credits to either the BCO, OTI, or trucking company for usage of their equipment and storage when no appointments or capacity at terminals. This was discussed in the recent FMC Detention and Demurrage Billing Practices Final Rule but ultimately not included. It is become efficient to file a claim for D&D but nothing exists for the trucking storage and chassis per diem which in many cases is the same rates as the ocean providers. There exists no simple ruling, process or remediation for importers or exporters, only added fees. 2. Inland Point Intermodal - with severe container shortages in China many carriers are refusing new bookings to inland points of USA (again) which compounds the effect on ag exporters and many others that need that equipment to keep their trade flowing. Yes there are new regulations about carriers not moving empty containers back to China from USWC but what about IPI cancellations at origin? We are seeing an increase of rejections for new IPI bookings and hoping it is temporary. #shippingsolutions #freightforwarding #oceanfreight #supplychain

Maersk Introduces Peak Season Surcharge from Eastern Mediterranean to Canada Shipping Arabia, October 16, 2024 — Maersk, the world’s second-largest container shipping line, has announced a revision in the Peak Season Surcharge (PSS) affecting freight rates for cargo shipped from the Eastern Mediterranean to Canadian ports. This adjustment will be implemented from October 23, 2024, impacting 20-foot, 40-foot, and 45-foot containers. The revised surcharge will see an increase of $2,000 per container, affecting shipments originating from key ports across Turkey, Lebanon, Egypt, Israel, Romania, Bulgaria, and Georgia, destined for various Canadian ports. This change comes in the backdrop of a significant surge in average freight rates, as reported by the Alexandria Chamber of Shipping. For containers shipped from East Asia to Egypt's Port of Alexandria during the third quarter of 2024, rates averaged around $4,500 for 20-foot containers—up from $1,111 during the same period in the previous year—and approximately $5,600 for 40-foot containers, compared to $1,932 previously. Further illustrating the trend, the cost of shipping from Southeast Asian ports, including China, Japan, and Korea, to the Port of Alexandria also showed notable increases. Prices rose to $4,000 for 20-foot containers, up from $1,111, and to $5,200 for 40-foot containers, from $1,932 during the corresponding months last year. Maersk’s decision to implement these surcharges reflects ongoing adjustments in the global shipping industry aimed at managing the fluctuating demand and costs associated with maritime transport. This move is expected to impact a broad spectrum of trade activities, particularly for businesses relying on imports from the Eastern Mediterranean to Canada. Source: Al Mal News #Maersk #Maritime #Freight #Surcharges #PSS

As West Coast ports prepare for what seems to be an early peak season, it's essential for your fleet to stay efficient. If you’re facing the strain of increased demand there may be relief in expanding your fleet with electric - send me a DM and let’s discuss how I can help navigate the process. #ElectricTrucking #TecEquipment #Transportation #WestCoastPorts #Drayage #Sustainability

Last night, the Maersk-chartered container vessel Dali collided with the Francis Scott Key Bridge in Baltimore, causing the bridge to collapse and very likely resulting in loss of life. The Dali had already offloaded import shipments at US ports and was en route back to Asia. We expect that vessel traffic to and from Baltimore port will be temporarily suspended, though the timeline is unclear. The full impacts of this disaster are not yet known, but it’s likely that nearby East Coast ports, including Norfolk, Philadelphia, New York, and others, will absorb cargo traffic from Baltimore in the short term. This sudden increase in volume may strain operations at other ports. On the West Coast, backlogs are growing at major ports due to rail congestion. Volumes have been strong so far in 2024; the Journal of Commerce reports that year-over-year, import volume from Asia surged 18% in January and 40% in February. Ports from Vancouver to LA/Long Beach are feeling the pressure. We’ve seen delays as long as 2-3 weeks between arrival and loading onto the rail for transport to inland points. This is an issue to watch, especially with the looming port labor contract negotiations on the East and Gulf Coast. If shippers become concerned about potential delays at East and Gulf Coast ports, volumes could shift and strain West Coast operations even further. For more details, check out Rachel Shames' article below. #Shipping #InternationalTrade #MarketUpdate #Pricing #Imports #Exports

Maritime transport plays a huge role in global trade. The popularity of this mode of transport is determined by its high load capacity, low costs and minimal capacity constraints. At AsstrA-Associated Traffic AG, it is one of our key products, so we regularly monitor the situation and develop alternative routes in case of supply chain disruptions. Let's summarise the first quarter of this year: ⛴️ Economic Outlook A potential economic enhancement till the end of 2024 should support trade in goods and boost demand for logistics services. ⛴️ Freight Rates Outlook Recent trends are such that ocean container shipping rates increased significantly in the 1st quarter of 2024. On April 2024 the WCI and SCFI indices are 74 % and 68 % higher compared to the same period last year. ⛴️ Rules and regulations ➡️Members of the Ocean Alliance published a statement to announce extending their shipping agreement by five more years. CMA CGM, Evergreen, OOCL and COSCO Shipping will now continue with their partnership until 2032. Launched in 2017, the Ocean Alliance is currently the world's largest shipping network. ➡️The US Federal Maritime Commission (FMC) issued the final rule on Demurrage and Detention Billing Practices on February 23, 2024. #marketpulse #oceanfreight #logistics

Southern California Ports See Record Cargo Surge in August 2024 Southern California's ports, particularly Los Angeles and Long Beach, experienced near-record cargo volumes in August 2024. This surge is driven by businesses stocking up on goods ahead of potential tariff hikes and a possible dockworker strike on the East and Gulf coasts. The Port of Los Angeles saw a 17.6% rise in imports, while Long Beach reported its busiest month ever, with a 33.9% year-over-year increase. Despite these challenges, both ports continue to operate smoothly, with expectations of sustained growth. Read more: https://lnkd.in/d8dgpXEc #SupplyChain #Logistics #Cargo #Ports #Trade #Shipping #SouthernCalifornia #BusinessGrowth #Tariffs #Economy #Freight

Container imports through the US west coast San Pedro Bay ports of Los Angeles and Long Beach are booming – a trend that looks set to continue, with some peak season volumes from Asia expected to arrive earlier than usual this year. Moreover, transpacific shippers are hedging their bets on the outcome of the US east coast new labour contract negotiations by increasing the percentage of import cargo they intend to move via west coast ports. However, some shippers and analysts have expressed serious concerns about the ability of the San Pedro Bay ports to handle additional volumes. Mike Wackett reports. #containershipping #oceanshipping #supplychain #oceanfreight #seafreight #longbeach #la #sanpedro