AIR

• USA airports are seeing normal operations, with flights generally moving well.  
• Shippers can expect minimal delays outside of the ‘one-off’ mechanical issues. 
• Fuel surcharge remains the same, with only a few carriers issuing rate increases. 
• Cargo to some Asian destinations still has slight delays in transit depending on fluctuating volumes of perishable freight. 

OCEAN

Trans-Pacific East Bound: Capacity Cuts Brings Rise in Trans-Pacific Shipping Rates

In July, spot rates between Asia and the U.S. have been increasing by double digits, reaching levels similar to early 2023 and late 2022. This is a direct result of carriers’ discipline in managing vessel capacity by voiding several sailings, removing around 35% of capacity from the market. Other factors contributing to spot rates stem are labor disruption in British Columbia and a more positive outlook for cargo demand in North America. This trend is expected to continue through September.

ILWU Canada Update

On August 4, International Longshore and Warehouse Union (ILWU) Canada members ratified a four-year negotiated tentative agreement with the British Columbia Maritime Employers Association (BCME).

Initially, the BCMEA ratified the tentative agreement on July 13, but the ILWU Canada caucus rejected it, leading to a brief strike before it was ruled illegal by the federal labor board. This was followed by the union issuing — then retracting — a strike notice for last weekend.

The July 1-13 strike by ILWU Canada resulted in vessel backlogs and inland supply chain disruptions.

Panama Canal Lowers Number of Ship Transits

The Panama Canal Authority (ACP) has announced that they will lower daily vessel transits due to an ongoing drought.

From July 30, 2023, the daily transit capacity of the Panama Canal has been adjusted to an average of 32 ocean-going vessels per day, with ten vessels in the neo-Panamax locks and 22 vessels in the Panamax locks.

There are reports of over 150 vessels waiting to transit the canal. Shippers should plan an additional 20 days of transit time to account for delays.

The Panama Canal Authority reported that the draft restrictions are primarily impacting laden containerships. According to a report by CNBC, forty percent of all U.S. container traffic travels through the Panama Canal every year. There have been reports of containerships offloading containers for shipment by rail as the canal increased the draft restrictions this year.

Click on the link below for more information on ocean!

August U.S. Port and Rail Status Update