International Maritime
Spot rate declines could accelerate after the launch of 10 new trans-Pacific services . Shutterstock . com
importers no longer have to make bookings as early — three to four weeks in advance — as they had been .
“ It ’ s not as difficult as it was getting space ,” Shames said .
PSS pushback
Some carriers are still charging , or attempting to impose , peak season surcharges ( PSSs ), which are applied to fixed-rate service contracts and NVO named-account rates . But customers , especially the larger importers and retailers , are starting to push back , McElroy said .
“ We ’ ve had only one carrier who approached us about a PSS ,” said an importer of home furnishings that ships with multiple carriers .
The National Retail Federation ( NRF ) on July 8 upgraded its forecast for containerized imports to the US for the sixth straight month as the frontloading of cargo and strong sales during an early peak shipping season have driven freight volumes to their highest level in two years . The revised forecast from the NRF comes as US consumer spending remains strong , despite higher prices for merchandise and various supply chain challenges that have increased shipping costs .
Containerized US imports from Asia increased 6.7 % year over year in May and 18.5 % through the first five months of 2024 , according to PIERS , a sister product of the Journal of Commerce within S & P Global .
Meanwhile , NVOs and carriers say it is almost certain now that a return to the normal Suez Canal routing for Europe , Mediterranean and US East Coast loops from Asia will not occur this peak season as the militant attacks on shipping in the Red Sea show no signs of abating . In fact , June was the heaviest month for attacks on shipping by Houthi militants operating in Yemen , Jon Monroe , who serves as an adviser to NVOs , said in a July 5 newsletter .
That means all-water services from Asia to the East
“ Peak season and Christmas cargo has moved way early this year .”
Coast will be forced to take the longer , more costly route around the southern tip of Africa , but there is good news for East Coast shippers . Water levels in the Panama Canal are returning to normal , which will allow carriers to load their ships more heavily on trans-Pacific all-water services from Asia to the East Coast .
email : bill . mongelluzzo @ spglobal . com
US imports from Asia grow for eighth consecutive month in May
Containerized US imports from Asia , in laden TEUs , with year-over-year change
TEU volume
1,600,000 1,400,000 1,200,000
1,000,000
1,000,000 800,000
600,000
400,000 277,714 200,0000
Source : S & P Global
0 L Jul Aug , 2022 Oct Jan 2023 Apr Jul Oct Jan 2024 Apr
TEU Year-over-year % change
40 % 30 % 20 %
10 % 100 % 0 %
-10 %
-20% -30% -30%
-40 %
Year-over-year % change
© 2024 S & P Global www . joc . com July 29 , 2024 | Journal of Commerce 17