Global Maritime Focus
Special Report
Short-term pricing from North Asia to the US West Coast averaged $ 3,260 per FEU in the week of Nov . 15 , the lowest since late April but still up 95 % from the same week last year , according to Platts , also part of S & P Global .
The extended peak — along with some shifting of discretionary cargo from the East and Gulf coasts — has put intense pressure on the ports of Los Angeles and Long Beach . Imports from Asia through the busiest US port complex surged 30 % year over year in the third quarter , according to PIERS . As a result , average dwell times for containers leaving Los Angeles and Long Beach by rail rose to 9.86 days in October from 9.25 days in September and 8.2 days in August , according to the Pacific Merchant Shipping Association .
Lawrence Gross , president of Gross Transportation and a Journal of Commerce analyst , said dwells “ will remain elongated until the rails get some relief on the volumes .”
Sliding trans-Pacific spot rates remain well above 2023 levels
Container spot rates from North Asia to US West and East coasts , in USD per FEU
USD per FEU
$ 10,367 $ 10,000
00
$ 8,000
$ $ 10,000 6,000
$ 4,000
$ 2,000
$ 0 LJan 2023 Jul Jan 2024
Jul
Record volumes through LA-LB ( pictured ) have resulted in rail container delays . Mark Roger Bailey / Shutterstock . com
Nov , 2024
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Railroads and terminal operators say that relief is already on the way , with imports through Southern California having peaked in September , and they are now focused on moving rail containers that stacked up in recent months .
“ It definitely plateaued in October , and we ’ re chipping away at the backlog ,” Alan McCorkle , president of Yusen Terminals in Los Angeles , told the Journal of Commerce .
According to Anthony Otto , president of Long Beach Container Terminal ( LBCT ), rail container dwell times at LBCT were down to about three days in the first week of November .
“ We ’ re all caught up , and things are headed in the right direction ,” Otto said .
A spokesperson for Union Pacific said the railroad has made “ significant progress ” in clearing out the backlog . “ So much has changed since October ,” the spokesperson said on Nov . 14 . “ Today , Union Pacific ’ s total Los Angeles- Long Beach inventory count is down to its lowest level since mid-July 2024 .”
That ’ s likely of little solace to shippers , who say they are still struggling with delays at the marine terminals .
An importer in the automotive sector who asked not to be identified said his company has built a buffer for rail container dwells into its Southern California supply chain . “ We have been doing this for months ,” the importer said . “ Big guys move quicker , the rest of us slower .”
Steve Hughes , president and CEO of consultant HCS International , noted that with other West Coast gateways also experiencing higher rail dwells , rerouting shipments to other ports is not an option for many importers .
“ If you ’ re looking for good rail connections , there are not many viable alternatives ,” Hughes said .
Senior Editor Ari Ashe contributed to this story .
Source : Platts , S & P Global
North Asia to US East Coast North Asia to US West Coast
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20 Journal of Commerce | December 2 , 2024 www . joc . com