North America Shipping Update
Carriers are pushing general rate increases from Asia to the United States. Spot rates from Asia to the U.S. West Coast continue to increase over the last month.
The congestion in Asian ports and U.S. ports is constraining equipment capacity which means shippers are competing with each other to secure space and equipment. This fight for capacity is forcing prices higher.
Indian exporters face a new carrier levy on overweight standard container loads to the United States and Canada, coinciding with the typical peak season.
The “heavy lift surcharge” is $1,400 per TEU for shipments weighing over 18 metric tons. The surcharge will apply to all 20ft dry, reefer, non-operating reefer, tank, flat rack, and open-top containers.
Inland rail hubs are experiencing crippling congestion. Chicago demurrage bills can exceed $10,00 for a single container. Backlash from shippers and non-vessel-operating common carriers caused Union Pacific Railroad (UP) to cap fees at its congested Global IV terminal in Illinois.
Cross-border shipments are increasing. The trucking capacity, both north and south of the border, is very strained. There is a growing imbalance of tractors and trailers and a shortage of truck drivers on both sides of the border.
The imbalance is caused by more freight heading north to the US than south to Mexico, therefore, there are fewer tractors and trailers at the border than needed for US imports.
The capacity imbalance means more freight is being broken down, transloaded, and reshipped at the border. Shippers that traditionally move northbound cargo in one tractor-trailer, direct to destination, should look at additional strategies around transloading as northbound shipments continue to increase.
Newark APMT & PNCT:
The recent record import volumes have caused a historically high demand for chassis throughout the United States. The demand is persistent for 40ft chassis and intermittent for 20ft chassis.
Truck conditions remain tight across the nation. Some areas are showing some improvement including, Los Angeles & Long Beach, Newark, Jacksonville, and Atlanta (improving but still extremely tight).
If you have any questions about your supply chain or real-time information about the market, please contact us today. We are available to discuss multiple carrier and service options to provide solutions for your supply chain. We proactively plan with our clients to navigate any challenges in the market today.