Market Update Q3 2024: No.7
All,
A few more critical occurrences over the weekend and a few more articles to give you some context. Macro view nothing has changed too much - still quite bad in India and rates going up (especially WC and any routing via WC). However, will see how the July 15 and August 1 market changes present as we go....
Please check out the Overweight deviation charge from Hapag, expect other carriers to follow suit and this will impact anyone who ships overweight cargo and the shipper is not accurate with their information. Something to look into for sure
We know about the rates and the last issue to get us over this hump in my mind is the ILA negotiations on the EC (also check out the "congestion surcharge" for Charleston) which don't seem to be progressing all that well so far. ILA wants carrier profit sharing which is likely a non-starter.
Carriers Halt India Bookings to Europe, US Amid Capacity Crunch
- Vessel space availability is a major concern for Indian shippers and freight forwarders on trades to Europe and the US.
- "Sold-out window" for spot bookings extends through most of July.
- Capacity pressures are more significant on trades to North Europe and the US West Coast due to schedule disruptions and congestion.
- Reported widespread challenges in securing space, impacting trade routes. Schedule disruptions linked to Red Sea diversions and congestion in transshipment hubs exacerbate the situation.
Peak Season Surcharges Hit Trans-Pacific Market Early and Hard
- Trans-Pacific container lines are implementing peak season surcharges earlier than usual.
- Surcharges are significantly higher, more than double the usual amount. June 1: $1000/40HQ surcharge for both USWC/USEC; June 15: additional $1000/40HQ for both USWC/USEC; July 1: some liners announcing up to $2,000/40HQ for USEC and $1000/40HQ for USWC.
- Capacity constraints and early peak season momentum drive the increases and carriers taking advantage
- My favorite increase announcement so far is Maersk with a $7000 increase within 5 days
US Trade Groups Urge Biden’s Help in Restarting Stalled ILA-USMX Talks
- US manufacturers, distributors, retailers, and trade groups are urging the Biden administration to help restart stalled contract negotiations between the International Longshoremen’s Association (ILA) and maritime employers.
- The call for intervention comes from 161 signatories, including the US Chamber of Commerce, the National Retail Federation (NRF), Sulphur and Fertilizer Institutes, and the Halloween & Costume Association.
- These groups sent a letter to the White House requesting assistance in facilitating the stalled talks.
- The potential reception of White House intervention by the ILA is uncertain, as the union navigates its traditional political strategies during an election year.
Author
Matthew Crocker / CCO