MARKET BRIEF | July 2021
A BRIEF look at what’s happening in the logistics and shipping industry.
West Coast Ports Still Impacted
Port congestion continues. Even though the number of ships anchored off the Port of Long Beach/Los Angeles has been gradually reducing since mid-March, the port has still experienced a 360% increase in container ships per day this year, compared to the same time period in 2019 (approximately 54 ships per day in 2021 vs. 15 ships per day two years ago). At this point, congestion is actually more extreme at the Port of Oakland (which hasn’t always been the case). Port congestion, in general, has been exacerbated by severe widespread equipment shortages.
ICT to Reduce Import Free Time
International Cargo Terminals (ICT) has advised that they will have a reduction in import free time, beginning on August 2, in New York, Atlanta, and Miami. With freight continuing to remain on dock, leading to a build-up of cargo not moving quick enough, ICT will have shorter free times, and will also increase storage fees at these locations.
Southeastern Ports Remain in Pool
Port officials in Savannah, Jacksonville, and Wilmington have signed a deal to maintain their involvement in the South Atlantic Chassis Pool through 2028. This is reliant upon the pool growing, and that the chassis quality will significantly improve.
Competition for Trans-Pacific Space Intensifying
After retailers and other importers battled for vessel space in Q2 of this year — and even paid record-high spot rates — carriers and forwarders are cautioning about even tighter space constraints and higher rates in Q3.
Ever Given Finally Departs
The previously grounded Ever Given has left Egypt 106 days after it got stuck in the Suez Canal. This is the result of the ship owner and the Suez Canal Authority coming to a compensation agreement.
Port congestion continues. Even though the number of ships anchored off the Port of Long Beach/Los Angeles has been gradually reducing since mid-March, the port has still experienced a 360% increase in container ships per day this year, compared to the same time period in 2019 (approximately 54 ships per day in 2021 vs. 15 ships per day two years ago). At this point, congestion is actually more extreme at the Port of Oakland (which hasn’t always been the case). Port congestion, in general, has been exacerbated by severe widespread equipment shortages.
ICT to Reduce Import Free Time
International Cargo Terminals (ICT) has advised that they will have a reduction in import free time, beginning on August 2, in New York, Atlanta, and Miami. With freight continuing to remain on dock, leading to a build-up of cargo not moving quick enough, ICT will have shorter free times, and will also increase storage fees at these locations.
Southeastern Ports Remain in Pool
Port officials in Savannah, Jacksonville, and Wilmington have signed a deal to maintain their involvement in the South Atlantic Chassis Pool through 2028. This is reliant upon the pool growing, and that the chassis quality will significantly improve.
Competition for Trans-Pacific Space Intensifying
After retailers and other importers battled for vessel space in Q2 of this year — and even paid record-high spot rates — carriers and forwarders are cautioning about even tighter space constraints and higher rates in Q3.
Ever Given Finally Departs
The previously grounded Ever Given has left Egypt 106 days after it got stuck in the Suez Canal. This is the result of the ship owner and the Suez Canal Authority coming to a compensation agreement.
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