Shipping
Port of Felixstowe welcomes The Premier Alliance
Port of Felixstowe welcomes The Premier Alliance
AAL completes delivery of 500MW renewable energy project in Australia
ICS backs IMO net-zero framework but calls for clarity on incentives
DHL says tariff extension fuels more transpacific shipping volatility than help
Yang Ming adds LNG dual-fuel ships to advance fleet upgrade
Port of Long Beach cargo slows in June
Chinese shipyards’ market share drops amid US port fee concerns
Emirates Courier Express expands to Australia
DP World, Asian Terminals deploy first fleet of electric internal transfer vehicles in the Philippines
Houthis cause 18M tons of added CO2 emissions – Sea Intelligence
DHL Express, Neste ink deal to use made-in-Singapore SAF for international flights
Container traffic up at Port of Antwerp-Bruges, total throughput drops
Port of Los Angeles logs busiest June for cargo on record
DaChan Bay Terminals adds India service, boosts China-India logistics corridor
DP World to develop Syria's Tartus port under 30-year deal
Port of Long Beach terminal expansion breaks ground
Singapore named top international maritime centre for 12th straight year
North Europe port congestion to persist through 2025 – Xeneta
US sets new tariff rates on 14 countries as it moved deadline to August 1
Hamburg invests €1.1B in port infrastructure expansion
Gemini switches up Asia service amid Europe's port congestion
Global schedule reliability climbed in May despite trade disruptions
Asia-NAWC capacity volatility more than triples
Containers lost at sea up more than double in 2024
Hong Kong launches up to HK$2M bunkering incentive for LNG, methanol
Sea-Intel finds top deep-sea ports among least reliable
Port of NY/NJ tops US cargo port rankings in May
Maersk to resume port calls in Haifa
Ningbo-Zhoushan Port sets H1 container record
Mawani privatizes cargo terminals at 8 Saudi Ports
BIMCO: Stable demand outlook despite market uncertainties
Hapag-Lloyd rebrands SAAM Terminals
Port of Savannah achieves third month of over half-million TEUs
CMA CGM names Esra Bora as new general manager in China
Maersk halts port calls at Haifa citing threat risks
First mega-boxship transits the Suez Canal in 15 months
ONE adds 13,900 TEU vessel to fleet
Freightos: Iran-Israel conflict not impacting freight yet
CMA CGM says shipping activities ‘proceeding as normal’ in the Middle East
Sea-Intel: Niche carriers seizing Transpacific opportunity again
Hong Kong marks first SIMOPS LNG bunkering at Modern Terminals
Tariffs put brake on cargo volume growth at Port of Los Angeles
MPA, NYK Group expand autonomous ship trials
PSA International joins Global Centre for Maritime Decarbonisation
Chengdu-Shenzhen-Hong Kong rail-sea service launches
Global schedule reliability continues to increase in 2025
Sea-Intel: Major ocean carriers profitability around US$5.9B in Q1 2024
Gebrüder Weiss expands into Thailand
DP World, VIMC Lines launch domestic coastal logistics service
Singapore, France ink enhanced maritime partnership agreement
CMA CGM launches first fully-electric container barge in Vietnam
MSC container ship sinks off India coast
Port of Savannah container trade up 17% in April
DP World to launch US$2.5B logistics infrastructure investment in 2025
Port of Long Beach sees record April, warns of sharp May drop amid tariff impact
Suez Canal introduces rebates to regain containership traffic
CMA CGM warns extended China-US tariffs could disrupt global trade
U.S. slashes ‘de minimis’ tariff on small China parcels to 30%
LA, Long Beach ports warn of continued tariff uncertainty
China-US deescalation may spur early peak season
Yang Ming: US-China trade deal may spur demand, but uncertainty persists
US-China tariff pause offers temporary relief, could fuel another frontloading rush
Transpacific shipping faces capacity cuts as trade war escalates
Houthi ceasefire raises prospect of container traffic returning to Red Sea
Kale Logistics to develop Oman's national port community system
PSA BDP takes majority stake in Mexico’s ED Forwarding
Xeneta: ‘Ships for America Act’ adds more uncertainty to container shipping market
JAFZA marks 40 years with record US$190B in trade
Seafrigo expands multi-modal services to support global expansion
US port fees to have minimal impact on Transpacific niche carriers
Port fo NY/NJ is busiest US port in March
S&P: Liner shipping contributes US$1.1T to U.S. GDP
deugro Thailand delivers critical reactors for sustainable fuel production
Emirates Shipping Line joins World Shipping Council
Japanese shipyards may benefit from US port fees on Chinese vessels
MOL opens office in Washington, D.C.
FREIGHTOS: ILWU-PMA DEAL BRINGS RELIEF, WHILE LOW-WATER IN PANAMA A CONCERN
June 21, 2023
Freightos welcomed the tentative deal reached between the International Longshore & Warehouse (ILWU) and the Pacific Maritime Association (PMA), which ended the gridlock that posed further to disrupt port operations on the US West Coast.
"Labour disruptions that had slowed operations at major US West Coast ports since the beginning of the month ended last week as the ILWU and PMA agreed to terms for a new six-year contract, with little lingering impact on container flows," Judah Levine, head of research at Freightos said.
Levine noted that the tentative agreement that will head through a ratification process over the next couple of months reportedly includes a US$70 million bonus and a gradual 32% wage increase for union members through 2028.
"Though other labour negotiations are ongoing — including ILWU Canada members and UPS Teamsters each authorizing their leaderships to call strikes if necessary — the resolution of this 13-month dispute represents a significant shift in the transpacific ocean landscape," he added.
The Freightos head of research said the threat of West Coast labour disruptions was one major driver of the volume shift from West Coast ports to the East Coast and Gulf — with West Coast ports now handling 56% of Asian import volumes down from more than 60% for much of the pandemic — and its removal could lead to some recovery of that traffic.
But Levine said the improvements in East Coast and Gulf port capabilities, as well as some diversification of sourcing to places like India and Vietnam, whose containers typically head to the East Coast via the Suez Canal, could also mean that not all shippers will be coming back.
"In the near term, the West Coast might enjoy an increase in volumes at the expense of alternative destinations as drought-driven low water levels in the Panama Canal are getting worse, with added restrictions announced for July that could significantly reduce the number of daily transits via the canal," Levine said.
In terms of consumer demand, he noted that the Federal Reserve's decision not to increase interest rates last week — after 10 consecutive increases — and improvements in consumer sentiment on easing though still elevated rates of inflation could be positive indications for consumer resiliency.
"But those positive signs aren't translating into a freight volume or rate rebound just yet, with only moderate increases in US import ocean volumes so far as we enter the typical peak season months and a lot of uncertainty surrounding when inventories will run down and consumer resiliency."
The Freightos head of research also said that carrier hopes for a June peak season bump were "mostly dashed" as transpacific rates have retreated from their early June GRI-driven increases.
[Photo: Freightos]
He pointed out that prices to the West Coast fell 9% last week, with the latest daily rate dropping another 15% to about US$1,200/FEU, a level even lower than the end of May.
Meanwhile, rates to the East Coast fell 5% last week and slid another 6% so far this week to US$2,342/FEU, about on par with rates for much of May and just below 2019 levels.
Panama Canal concerns
"Panama Canal low water surcharges are likely helping keep East Coast rates from decreasing further and could put upward pressure on prices if conditions worsen," Levine said.
In the Freightos report, it noted that Asia-Europe prices climbed last week, likely from an early-month rate push by carriers, but prices so far this week also appear to be falling to about the US$1,260/FEU mark, below May levels and 5% below rates in 2019.
Levine said though some in the air cargo space are still hopeful for some demand rebound air cargo peak season late in the year, others are less optimistic.
"As the drop in freighter conversions reflects, demand for air cargo continues to drop just as passenger travel and the cargo capacity it adds to the market continues to recover," he said.
Freightos Air Index rate data show that China - N. Europe prices dipped 3% over the last month to US$3.18/kg and are 53% lower than last year.
China - N. America rates climbed more than 20% this month to US$5.60/kg but are 25% lower than a year ago, while transatlantic prices dipped 10% to US$2.23/kg and are 39% lower than last June.
The FBX overview showed that Asia-US West Coast prices (FBX01 Weekly) fell 9% to US$1,427/FEU — with the rate 85% lower than the same time last year.
Asia-US East Coast prices (FBX03 Weekly) decreased 5% to US$2,487/FEU and are 79% lower than rates for this week last year.
Asia-North Europe prices (FBX11 Weekly) increased 10% to US$1,325/FEU and are 88% lower than rates for this week last year.
