Ocean Shipping

While 2023 marked the overdue conclusion of a new West Coast port labor agreement between the International Longshore Warehouse Union and the Pacific Maritime Association, an East Coast labor agreement awaits to be completed in 2024, by the end of September, between the International Longshoreman’s Association (ILA) and the United States Maritime Alliance (USMX).

In an advisory issued yesterday, the Panama Canal Authority (ACP) announced a new adjustment to accommodate the growing demand for transits, by increasing the number of daily slots available in the Panamax Locks. ACP officials said that this announcement was made in response to the present and projected level of Gatun Lake.

In this podcast, Jeff Berman, Group News Editor for Logistics Management and the Peerless Media Supply Chain Group interviews Evan Armstrong, President of Brookfield, Wisc.-based supply chain consultancy Armstrong & Associates.

For January, the most recent month for which data is available, Port Tracker reported that import volume, for the ports covered in the report, came in at 1.96 million Twenty-Foot Equivalent Units (TEU), a 4.7% increase over December, and an 8.6% annual increase.

From January to February, Descartes reported that U.S.-bound container import volumes fell 6%, to 2,137,724 twenty-foot equivalent units (TEU), compared to January and were up 23.3%

While managing significant volume swings driven by the pandemic and ongoing geopolitical issues, U.S. seaports continue to press forward with efforts to improve infrastructure and build in efficiencies an unwavering attitude that bodes well for the future.

Global container liner members of the OCEAN Alliance recently announced they have signed documents to extend their agreement for five years, running through March 21, 2032. The OCEAN Alliance, which is comprised of CMA CGM, COSCO SHIPPING, Orient Overseas Container Line (OOCL), and Evergreen, was established in April 2017.

The ongoing series of attacks on the Red Sea shipping lane by the Yemeni Houthi pirates in response to the ongoing Israel-Palestine conflict continues to resonate within the global supply chain and economy by extension, to be sure. It has elicited no shortage of takeaways and opinions about various related factors, including: its potential duration; impact on rates; and supply chain strategies and contingency plans, among other things.

January imports, at 2.59 million TEU (Twenty-Foot Equivalent Units) rose 9% annually, representing the third consecutive month of annual growth coming in at 9%.

POLA volume came in at 855,652 TEU (Twenty-Foot Equivalent Units), for an 18% annual increase, and POLB reported that January volume, at 674,015 TEU, increased 17.5% annually.

For calendar year 2023, total U.S.-bound retail container imports, at 22.3 million TEU, were down 12.8% compared to 2022.  The report observed that this was in line with expectations, adding that the shift to growth in its forecast is intact.

From December to January, Descartes reported that U.S.-bound container import volumes rose 7.9%, to 2,273,125 TEU (Twenty-Foot Equivalent Units). And on an annual basis, it found that January volumes were up 9.9%, while posting a 9.6% increase compared to pre-pandemic 2019’s 2,036,393 TEU tally. What’s more, the report noted that the 7.9% sequential increase, from December to January, marked its biggest gain for that period over the last seven years.

With the global supply chain remaining on high alert amid the series of attacks on the Red Sea shipping lane by the Yemeni Houthi pirates in response to the ongoing Israel-Palestine conflict, a hearing held this week by the House Transportation and Infrastructure Committee, examined the impact of this situation on various aspects of goods movement and the supply chain.

Global shipping rates are skyrocketing as Houthi attacks in the Red Sea continue. Carriers avoiding the area are suffering from longer transit times around Africa, leading not only to higher costs but delayed deliveries and disruption throughout the global supply chain.  

Hapag-Lloyd said that the objective of this new offering will be to deliver a flexible and interconnected ocean network with industry-leading reliability. And Maersk explained that the Gemini Cooperation will provide unprecedented reliability, speed-to-market, and geographical reach, as well as continuing to support decarbonization and the company’s future intention to be a net-zero company.