November 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)
- LAXLGB port situation is improving with 8 vessels at anchor and 35 vessels slow steaming.
- NYC and Savannah dwell both remains around 8 days and 15 days, respectively.
- Savannah has 27 vessels at anchor, slowly reducing but still facing severe congestion.
- HOU dwell time down to 16 days with 11 vessels at anchor.
- LAXLGB on dock rail dwell average down to 10 days, off dock down to 18 days.
- Oakland has become more congested, with 11 ships waiting for the berth and an average waiting time of 17 days; SEATAC port congestion largely cleared, but IPI still somewhat congested.
- IPI situation is improving with backlogs clearing; however, chassis shortages plague inland ramps and prevent the smooth flow of cargo.
- TRANSPACIFIC WEST BOUND (TPWB)
- Savannah and New York continue to see issues related to congestion.
- The fluidity with regard to available capacity and vessel arrivals is ongoing in Seattle and Oakland, whereas Los Angeles is looking more stable.
- Equipment and chassis supply is still problematic at most inland CY locations, with Chicago tending to be better than most in terms of availability.
- Rate activity has been generally muted as demand has slowed and carriers look to bolster their export lifts.
- TRANSATLANTIC EAST BOUND (TAEB)
- Congestion issues look to have eased slightly on the European side but need resolution on some of the recent labor disputes to return to normal operating status fully.
- Off the U.S. East Coast, capacity is generally available, but congestion at Savannah and New York ports has led to irregular schedule performance. Capacity should only increase as Ocean Alliance is bringing in larger ships with 1st eastbound sailings in mid-November.
- Capacity out of Houston has been restrained as increased demand, and vessel delays continue to present challenges.
- Rates have been stable as carriers look to increase their export lift.
USA Origin:
Europe Origin:
Stability: Instability will continue into 2023.
- The ILWU (Longshoreman) clerks walked off the job 11/02 which led to the shutdown of the port terminals until 6pm the same day with little impact to ocean imports.
- The BMWED (Brotherhood of Maintenance of Way Employee Division) had been prepared to strike 11/19 after rejecting the Biden administrations proposed contract. The group has postponed a strike at this time until 12/09 in hopes a better agreement can be made.
- China COVID outbreaks are causing shutdowns and restrictions to take place in Guangzhou and Zhengzhou a manufacturing hub. Beijing is also seeing increased cases.
- Global Schedule Reliability declined to 45.5% in September – this is a decrease of 0.7% M/M.
Future Lookouts:
- US Imports sank in September but in October flatted out. Last months volumes are indicative of gradual reversion toward pre-pandemic levels.
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