October 19 2022

October 2022 International Market Update

AN UPDATE FROM SUNSET’S INTERNATIONAL TEAM:

The following information from Sunset’s International team details the current International market conditions. Customer communication is vital with the instability of international trade. 

Sunset is here to help with the most basic or complex shipments.  Email [email protected] to speak further about how to manage any International needs that arise.

Ocean Industry

Current constraints

  • TRANSPACIFIC EAST BOUND (TPEB)
    • LAX / LGB port continues to improve, with 12 vessels at anchor and 36 vessels slow steaming. LAX / LGB on dock rail dwell average increased to 13.5 days, Oakland cargo flow is fluid, SEATAC down to 7 days; however, on low volume.
    • NYC dwell remains around eight days, and Savannah down to 15 days.
    • Savannah has 32 vessels at anchor, a reduction week over week but still in a severe state.
    • HOU dwell time remains 18 days with 21 vessels at anchor.
    • IPI situation is improving. However, the backlog of inaccessible containers is still not moving smoothly.
  • TRANSPACIFIC WEST BOUND (TPWB)
    • Congestion is still problematic on the USEC; some vessel strings omitting Charleston & Savannah.
    • Out of the US west coast, capacity has stabilized, with space generally available out of Los Angeles/Long Beach, while Seattle and Oakland are more fluid.
    • Container and chassis deficits are still problematic from inland locations. Supply in Chicago tends to be more reliable.
  • TRANSATLANTIC EAST BOUND (TAEB)
    • Vessel schedules have generally seen delays incurred due to congestion, but recent labor actions at Hamburg and Liverpool have only exacerbated existing problems.
    • Congestion at Hamburg has been improving, but the recent strike at the port of Liverpool has spillover potential for other UK ports.
    • Space off the US west coast to North Europe continues to be tight, as well as ex-Houston.
    • Capacity is more available off the US east coast, but Savannah continues to see challenges.

USA Origin:

Europe Origin:

Stability: Instability will continue into 2023.

  • The ILWU (Longshoreman) on the west coast have continued to work under an expired contract as of 07/01, we are hearing of rising tensions and potential stall tactics but are also hearing that talks are fluid and there is still no current fear of a port strike. We will continue to monitor this ongoing situation. 
  • The BLET (Brotherhood of Locomotive Engineers) with administration intervention have come to a tentative agreement that averted a potential strike.  However, the Brotherhood of Maintenance of Employees Division has rejected an agreement by 57% that could turn into a strike scenario as early as November 19, we are awaiting news if the Biden administration will also intervene in this situation.
  • Global Schedule Reliability Improves to 46.2% in August  – this is an increase of 5.8% from July.

Future Lookouts:

  • US Imports sank in September, reporting the steepest drop since 2020.  Due to the plunge of Asia bookings and retail order cancellations we have also seen swift and dramatic declines in the spot rate market. 


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