North American ports

Global vehicle manufacturers are still recovering from widespread semiconductor shortages, while domestic automakers and body shops face ongoing delays in components ranging from rear suspensions to front bumpers.

The railroad will start a twice-weekly service to Dallas and once-weekly service to Denver, but no ocean carrier as yet is offering inland moves from Houston.

US exports of plastic resins rebounded in 2022 after an uncharacteristic decline in 2021, but increased production in China and an uncertain global economy could dampen demand this year.

The International Longshoremen’s Association should be able to sue ocean carriers that do not abide by work preservation rules, according to several briefs filed in support of the union’s dispute involving jobs at the Port of Charleston’s new terminal.

Unlike last year, when apparel importers front-loaded volumes in the first half, apparel shippers are waiting for more clarity on consumer spending before they bring back-to-school and holiday inventory into the US.

The influx of new drivers to the New York-New Jersey port helped it handle record volumes in 2022, but the downturn means less work and possibly more turnover.

US imports of beer, wine and spirits could have been even stronger over the last two years if not for widespread supply chain disruptions stemming from the COVID-19 pandemic.

The decision by ocean carriers to not charge per diem fees when gates are closed will result in money remaining in the pockets of importers and exporters rather than flowing to carriers and terminal operators — and anyone who thought that would happen without a fight is dreaming, writes Peter Tirschwell.

The change comes in advance of the FMC’s final rule on detention and demurrage billing that is due to be published in mid-June and has already generated pushback from marine terminal operators.

Toy and game manufacturers front-loaded traditional holiday merchandise in 2022, resulting in an exceptional first half of the year followed by a weak fourth quarter that coincided with a broader decline in consumer spending.

One might expect that Western Canadian ports have benefited from cargo bound for the US Midwest being diverted from the US West Coast to avoid potential labor disruption, but that has not been the case, notes analyst Larry Gross.

Last year’s dip in electronics imports is a sign that US consumers were holding back on some discretionary purchases after two years of heightened spending during the COVID-19 pandemic.

Nearly three years of record Asia imports tested Savannah’s cargo flow at times, underscoring the port’s need to ensure it had sufficient buffer capacity to handle growth.

Consumer spending in the coming months will be compromised somewhat by high inflation, while retailers are being conservative in placing purchase orders with factories in Asia because of bloated inventories, according to the Global Port Tracker.

Obtaining all required governmental approvals and choosing a contractor and operator is likely to push the opening of Vancouver’s Roberts Bank Terminal 2 into the early 2030s.

Better vessel reliability helped fuel a return to growth in US agriculture exports in the second half of 2022, but those green shoots could be ripped up at the root if service doesn’t continue to improve.

The rule changes will not have much of an initial cost impact on shippers as almost all New York-New Jersey terminals are closed on weekends and holidays, thereby not counting toward free time, and containers are now moving off the port faster.

CBRE’s latest figures on industrial real estate demand show the supply of new and existing warehouses grew faster than tenant demand, with vacancy spikes expected through 2023.

Activity at the ports of Los Angeles and Long Beach has a direct impact on the domestic intermodal market, large intermodal providers say, which is why rail volumes were so poor in the first quarter.

An agreement on manning requirements at conventional terminals at the ports of Los Angeles and Long Beach could open the door for a deal on a tentative coastwide contract in the next couple of weeks, sources say.

The Port of Houston is changing its tariff to align with ocean carriers who are no longer charging detention and demurrage fees when terminal gates are closed, but it’s also increasing its own fees to incentivize cargo movement.

Jones Act carrier Crowley will offer a new international container service from Mexico’s Gulf Coast into Mobile that will use Canadian National for inland reach to the US Midwest and Canada.

Forwarders generally believe the limited GRI gains that have been achieved or are anticipated in the coming weeks on the India-US trades will be short-lived unless more capacity is withdrawn or a large increase in volumes occurs.

New York-New Jersey port truckers who worked five days per week last year are now down to about half that amount, sending spot drayage rates well below levels seen in 2021 and 2022.

Shippers are moving more freight in the US Southwest, and paying more to do so, despite weak trucking markets elsewhere in the country, according to U.S. Bank.

California wants to give shippers a single view into freight operations at five state ports with a joint grant for those gateways to create a single data system that can provide visibility.

The Georgia Ports Authority expects to begin construction on the approximately $170 million terminal in early 2024, which will have a focus on manufacturing imports and poultry exports.

When it became apparent the carriers’ recent GRI had succeeded in bumping up spot rates by several hundred dollars, sources say customers moved to sign their contracts out of concern that rates would only go higher the longer they waited.

Jaxport is seeking a new tenant or tenants for a 79-acre parcel at the Talleyrand Marine Terminal in preparation for Toyota vacating the property in 2025.

The FMC is poised to implement potentially far-reaching changes in how detention and demurrage fees are assessed, a move that could cloud how to incentivize the movement of cargo through US marine terminals.

The use of slow steaming, which will also reduce emissions, is one method for MSC to absorb more ships coming into its fleet this year without adding more weekly capacity.

Coming to an agreement on the manning issue at Los Angeles–Long Beach would allow the ILWU and PMA to move on to other big matters such as wages and retirement benefits, sources say.

Vancouver’s proposed Robert Banks Terminal 2 cleared a major federal environmental hurdle this week, putting the focus on who will construct and build the facility with a planned annual capacity of 2.4 million TEU.

Foes of the Oakland stadium plan said building at the 55-acre terminal site would disrupt the flow of traffic in and out of the port and create a security risk.

The ILWU statement comes even as Local 13 continued to engage in job action this week that has been slowing cargo handling at the ports of Los Angeles and Long Beach.

The West Coast continues to lose discretionary cargo to the East and Gulf coasts as shippers seek to avoid the type of disruption that has been occurring in Southern California of late linked to ongoing labor negotiations.

Alabama legislators are looking to pass a series of new tax credits that aim to encourage more shippers to use the state’s ports and labor force.

The Supreme Court turned away New York’s attempt to keep New Jersey beholden to a bi-state police agency charged with labor oversight at their jointly run port.

Forwarders said the capacity increase is due to carriers no longer skipping or blanking calls at Japanese ports following the normalization of demand and the easing of port congestion in the US.

The carrier executive says despite a slow start to 2023, a return to seasonal shipping patterns in August and September could follow a mid-summer lull in import demand.