Insight

May 2022 – Ocean Update

By In Insight On 12th May 2022


Tip of the Month

 

Expect a surge in export and import volume once the Shanghai lockdown is over. Prepare your shipments ahead of time since space and equipment will be under pressure with shortages.

Shanghai city, the world’s busiest port, continues to be on extended lockdown. Many experts and analysts expect it will be “a month or two before things are back to normal.” Ocean carriers are planning several blank sailings as demand for cargo from Asia to the USA has slowed a bit. Still, congestion and delays are primarily affecting vessel rotations and equipment availability.

- Major U.S. ports are still coping with congestion and keep clearing their backlogs:

  • Los Angeles
  • Long Beach
  • Oakland
  • Houston
  • Charleston
  • Savannah

- Labor negotiations start May 12 between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union's (ILWU) 15,500 plus members. Both sides hope to avoid supply chain disruption at the 29 West Coast ports involved before the current contract expires on July 1. Automation continues to be a hot topic, with the PMA releasing a study on Terminal Automation at the Ports of Los Angeles and Long Beach, with findings that "automation has not reduced job opportunities for dockworkers."

- U.S. exports to all destinations are experiencing delays and price increases. Port congestion is causing vessel rotations and schedule changes while carriers implement General Rate Increases (GRI) to offset the cost of current congestion in all USA significant ports.   

Port Notables

 

Los Angeles & Long Beach "Container Dwell Fee" continues to be postponed due to a 47% decline in aging cargo on dock. The fee was originally scheduled to start last November to encourage freight movement. Vessel wait times are at 16 days and 23 days respectively.

Prince Rupert & Vancouver are facing significant vessel wait times of 14 days and 28 days respectively.

Oakland vessel wait time is at 10 days due to high import volume and labor shortage. 

Houston  vessel wait time is at 2-8 days due to high import volume, labor shortage and vessel bunching.

 


NNR Global Logistics website is available in multiple languages.

Select your language