Key Takeaways
POTENTIAL US PORT STRIKE
East and Gulf coast dockworker’s contract expires Sept 30.
The International Longshoremen’s Association (ILA) represents 25,000 dockworkers at 36 US Ports along these coasts.
Recommendation: avoid sending containers to the US East and Gulf Coast ports until a new contract is in place
A brief strike by Canadian Railroad workers occurred on August 22nd. The Canadian Government intervened and ordered workers to resume work within 18 hours of the stoppage.
US ports are operating effectively, no major delays.
Container costs are up 2x over this time last year.
Rates have come down from their high point earlier in the summer, and are likely to stay around their current levels for several months.
Ocean vessel schedule reliability is hovering around 55%.
Container availability is an issue at some ports.
For US imports expect minimal delays on average 1-3 days.
Booking delays in Asia could be as high as 3 weeks.
Container Logistics
Rising Container Costs
Starting in May and continuing into September container rates have quickly increased.
Factors causing this increase:
Carriers canceling planned vessels, to ensure each boat that is moving is full. Leading to shippers fighting for the available space.
Vessel backups and delays in Singapore are causing a ripple across global ocean logistics.
Container availability issues are occurring. This is mostly due to the longer transit times boats have been facing for 8+ months.
Additionally, vessels being out of position due to longer transit times / delays.
Shippers are moving up their peak season shipments, which is worsening the current market conditions.
Imports to the US are up 12% year over year.
Panama Canal Congestion
Restrictions due to drought are still in place, however conditions are continuing to improve.
The canal is now allowing up to 35 vessels to transit, up from 24. The daily transits allowed, and the draft level of the vessel (depth) are continuing to increase back to the normal level.
Suez Canal and the Red Sea
Starting in November 2023 and continuing into September most long-range steamship lines avoiding this area. Local traffic is continuing to use the canal.
Overall volume through the canal is down over 50% compared to this time last year.
Vessels inbound to the USA are continuing to route around Africa (Cape of Good Hope), which increases transit time by roughly a week.
US Port and Overland Overview
Fuel Updates
Ocean Fuel (VLSFO) as of September 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 September is $3.65 a gallon
Diesel is still roughly 20% 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.
National FTL rates are steady throughout 2024, though elevated from 2019 levels.
LTL and small package rates have continued to rise, due to the nature of how those networks function.
Data Analysis
July imports exceeding all previous July records, with July 2024 now the 3rd largest month ever for import containers.
West coast port share is at a yearly high – likely shippers preparing to avoid a potential east coast strike, among the ongoing canal issues.
The PDF below is port-by-port review across the U.S. in September 2024 compared to 2023 & 2022.