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
Rates have started to decrease from their high earlier this year. They are still elevated above the low points we saw in the winter of 2023.
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 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 image below demonstrates the 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.
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 Port Overview
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.
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 April is $3.94 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 county.
Data Analysis
March imports were nearly 25% higher than 2023 and 2019.
East coast port load share stayed ahead of the west coast through March 2024.
The PDF below is port-by-port review across the U.S. in May 2024 compared to 2023 & 2022.
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