General Notes
Key Takeaways for International Logistics
Nearly all Ocean lanes are affected by the congestion in Panama and vessels avoiding the Red Sea / Suez Canal.
The following factors are also affecting transit times and pricing:
Ocean freight for many lanes will take several days to a week longer.
Routes could change unexpectedly.
Increased costs / General Rate increases (Rates as of March 4 are 2-3 times the rates in December).
Vessels and containers out of position and taking longer to circulate through their normal routes.
Panama Canal Congestion
Restrictions due to drought are still in place holding the vessels allowed to transit per day at 24 down from 38.
Suez Canal and the Red Sea
Starting in November 2023 and continuing into March 2024, 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 below image shows container vessels inbound to the USA. Note the large amount using this new route.
The US military has a presence in the region and is coordinating with other nations to provide security for trade vessels.
US Port Overview
US East / Gulf Coast Dock Worker Contract
The ILA represents workers at 36 ports along the Gulf and East coast.
At the start of March, there is an uptick in delays (approximately 1 day) at several US ports – though overall freight is moving through the ports efficiently.
East Coast and Gulf Coast ports are seeing the largest increase in delays.
Fuel Updates
Ocean Fuel (VLSFO) is up roughly 10% since the start of the year.
Compared to 2021 and prior the cost is still up 50% +.
Diesel in the USA as the start of March is $4.05 a gallon.
Diesel is still roughly 30% 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 country.
Data Analysis
January imports were nearly 10% higher than 2023 and 2019.
West coast port load share edged ahead of the east coast in January 2024 (on the right side of the graph).
The PDF below is port-by-port review across the U.S. in March 2024 compared to 2023 & 2022.