1230 Words 5 minute read – let’s do this!
Slow. The market is so slow. Volumes are way down into the start of 2023 and ugly Recession vibes are real. There has been a steady decline in import volumes since the beginning of the year and January is already more than half over. Now is a good time to reflect on the economy and how things will change over the next coming months. In the past volumes dictated capacity and of course rates, but there are still many uncertainties that drive the market to move in crazy directions. Will the ports and rails improve on congestion and chassis inventories? Will there be more drivers entering into the workforce or more leaving? Will the trends like quiet quitting, job hopping and even Unions be a thing of the past? The US has 1 more year of the current administration so 2023 will be a crucial year for economic changes. Let’s see where the year in Logistics takes us.
I still have a watchful eye on the International Longshore and Warehouse Union (ILWU). There is still not too much resolution in sight and shippers are still steering clear of the west coast because of it. Retailers and non-vessel-operating common carriers (NVOs) told the Journal of Commerce this week they will continue to route as much of their discretionary cargo as possible through East and Gulf coast ports due to uncertainties over the direction of West Coast longshore contract negotiations, now in their eighth month. The West Coast’s share of imports coming from Asia dropped to 58.8 percent in 2022, down from 61 percent in 2021, according to PIERS, a Journal of Commerce sister product within S&P Global. The East Coast share rose to 34.2 percent, up from 32.9 percent, while the Gulf Coast share rose to 6.7 percent from 5.8 percent. Our capacity is booming in all areas so reach out and give us a go!
Now back to volumes: Import TEU volumes have fallen down 29.72% from last week – with Chinese New Year likely the cause of the decline. The 2023 Chinese New Year holiday officially begins Sunday the 23rd. Since China has become a leader in the global export industry, the sheer magnitude of the nation’s manufacturing and export operations across its various territories will come to a screeching halt during Chinese New Year, as factories can shut down close to a month before the festivities, resulting in potential disruptions in supply chains across the region. Preparation and factory slowdowns are already underway since the beginning of January, here is a helpful timeline of the Chinese New Year 2023 happenings for your reference to help you visualize the dates that may impact your business and which potential challenges for your business may occur: January 1st Through the 6th factories gradually begin to stop production. From January 6th through the 21st workers stop working and leave the factories for vacations. January 21st through the 27th Chinese New Year begins. February 5th Workers return to factories and normal operations. How does the Chinese New Year affect the US supply chain? Though ports in China will continue to operate as usual during the Chinese New Year period, they may function at a lower capacity. Ocean space will be tight, and many freight services may be full. With the seasonal shipping rush and suppliers looking to make bookings to avoid being affected by the Chinese New Year closures, containers may get filled up faster than usual. Space will become harder to secure as carriers will be overbooked earlier than usual. Ports running at a lesser capacity can result in container delays. Remember that freight and trucking services can get more expensive during this Chinese New Year. Rates will rise from December 2022 to February 2023 due to China’s limited capacity and extended holidays. The volumes over the next half of his month and into February will heavily be impacted by the year of the rabbit! DID YOU KNOW? Chinese New Year also brings increased blank sailings and less inbound cargo, you will see extended lag time on LCL consolidations. We bring you lucky news, our Carrier 911 team can help. We can get your LCL shipments delivered faster from any CFS to door with same day CFS pickup and direct delivery complete with Turvo tracking. Reach out to the Carrier 911 team for more information and pricing and see how much you will save on transit time with our Carrier 911 service vs. standard LTL services – you won’t even believe it! Info@carrier911.com.
What is going on at the ports this week?
Savannah: Vessels are rolling in with almost no TEUs. With that said, chassis and capacity are abundant and drivers have a max 1-2 hour wait time from the time they hit the gate. Especially with the terminal expansions of the near future now is a great time to utilize the Savannah Port.
Charleston: Was once full of congestion and long driver wait times during the first half of 2022 as the southeast took on the excess West coast TEUs that shippers transitioned over. Flash forward to this week, drivers are now reporting wait times of only 30 minutes. Let us be your preferred Southeast carrier – we will have our drivers track the containers from time of terminal arrival and you can watch in real time it takes the driver to pick up and make final delivery. With Port X Logistics, you can log into your own account on our platform, track your own containers and get PODs at time of delivery, and even invoices at the close of the shipment right from your smartphone.
Miami: There are still congestion issues, primarily SFCT and POMTOC. SFCT and Port Everglades Terminal are around 3-6 hour turnaround. POMTOC Wait times are a struggle but capacity and chassis availability is fantastic.
Did you know? I will be doing a Savannah special newsletter next week as I will be working down there with the amazing Savannah crew. We have many new and exciting announcements ahead in 2023 in Savannah and other markets and we will continue to feed you all the updates over the next few weeks and months. Feel free to reach out to me directly if there is anything you want to know about our Savannah operations, how to get a port tour in Savannah or even fun things to do on a Savannah vacation. If you are ever in the area, we welcome everyone to stop by! We have immediate capacity for all your drayage and transload needs in Savannah, we can cover any emergency and even would love for you to give us a try. We are currently offering competitive rates and immediate container pulls and pre pulls. Contact the Team at SAV@Portxlogistics.com
Don’t forget we are getting closer to the 2023 TPM – Port X Logistics will have a booth and we have many activities to partake in. Reach out to our marketing team for more information marketing@portxlogistics.com See you in the LBC 2023!
Contact the leadership team via letsgtrolling@portxlogistics.com.
~ Jill Rice
Import Volume Charts
