US Port Review - June 2024

Updated: Jul 1, 2024

General Notes on International Container Logistics

Rising Container Costs
- Throughout March and April container rates decreased from the highs seen at the start of the year.
- Starting in May and continuing into June container rates have quickly increased, and are now at a yearly high.
- 40’ containers coming to the USA are now $8,000+
- Factors causing this increase:
  - Carriers canceling planned vessels to ensure each boat that is moving is full which is leading to shippers fighting for the available space.
  - Container availability issues have started to occur, mostly due to the longer transit times boats have been facing for 8+ months.
    - Additionally, vessels are out of position due to longer transit times & delays.
  - Imports to the US are up 24% year over year.
Panama Canal Congestion
- Restrictions due to drought are still in place, however in mid-May the canal increased the number of ships that can transit daily.
- The canal is now allowing up to 31 vessels to transit, up from 24. This is lower than the previous maximum of 38-42.

Suez Canal and the Red Sea
- Continuing through the start of June vessels are continuing to avoid the Suez Canal and Red Sea.
- Starting in November 2023 and continuing into April, Houthi Rebels have conducted attacks on vessels transiting the Red Sea.
  - This has led to most steamship lines avoiding the area, with vessels now routing around Africa (Cape of Good Hope), which increases transit time by several days.
  - The US military has a presence in the region and is coordinating with other nations to provide security for trade vessels.
  - Below image demonstrates container vessels inbound to the USA, note the large amount of vessels using this new route around the Cape of Good Hope.

USA Port and Overland Overview

Francis Scott Key Bridge Collapse and the Port of Baltimore
- Recovery efforts continue around the collapsed bridge, with the first (small) container having recently arrived to the port of Baltimore since the collapse.
US East / Gulf Coast Dock Worker Contract
- The International Longshoremen’s Association (ILA) contract expires on September 30 2024. Negotiations are underway for a new contract.
- The ILA represents workers at 36 ports along the Gulf and East coast.
National FTL rates are steady throughout 2024, though still elevated from 2019 levels.
- LTL and small package rates have continued to rise, due to the nature of how those networks function.

Fuel Updates

Ocean Fuel (VLSFO) as of June 2024 is flat over the year.
- Compared to 2021 and prior the cost is still up 50% +.
Diesel in the USA as the start of May is $3.75 a gallon.
- Diesel is still roughly 38% higher than 2019 levels, which is keeping freight prices elevated.
- Additionally, average diesel prices reported by EIA.gov are typically lower than truck stop prices, and are average across large sections of the county.

Data Analysis

US East Coast Port load share stayed ahead of the US West Coast through April 2024.

The PDF below is port-by-port review across the U.S. in June 2024 compared to 2023 & 2022.