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I have been in the midst of many discussions on the current state of the Panama Canal – from many friends and family that possibly have never even known what the Panama Canal’s purpose is and how it affects their day to day. It’s pretty crazy to see how mainstream media sparks interest in daily lives of those that consume news on the regular. This is one of the examples why we urge you to subscribe (and to pass along to your friends even outside of the industry) to the Port X Logistics LLC LinkedIn page for the most up to date news affecting your supply chain, as well as information on exciting Port X Logistics news. To get on the list for this weekly Market Update Newsletter and future industry related news sent direct to your inbox email Marketing@portxlogistics.com
In January, the Panama Canal saw a significant recovery in vessel traffic, increasing nearly 50% year-on-year, despite U.S. President Donald Trump’s recent statements to take control of the canal from China. Weather conditions at the canal have also improved, alleviating some climate-related draught restrictions that had previously limited daily commercial vessel transits. A total of 632 commercial vessels transited the canal in January, with container ships, roll-on/roll-off (ro-ro) vessels, and LNG ships among the prominent types. Despite the rise in traffic, including a 50% year-on-year increase in liquid bulk cargo ships, the canal’s overall vessel traffic remains below the 2019-2022 average. The U.S., which remains the largest user of the canal, accounts for 52% of the total traffic, while China follows with a quarter of that amount.
A senior U.S. military commander who oversees operations over much of Latin America will visit Panama this week to discuss security cooperation as well as the Panama Canal and migration, the U.S. embassy in the Central American nation said on Wednesday. Admiral Alvin Holsey, the head of the U.S. Military’s Southern Command, is scheduled to meet on Wednesday and Thursday with Panamanian officials as the administration of U.S. President Donald Trump has argued that China holds undue influence over the country’s namesake canal, one of the world’s busiest maritime trade passages.
Moving on to Suez Canal: Suez Canal Authority Chairman Osama Rabie said on Wednesday that the Red Sea crisis did not create a sustainable route to replace the canal, adding that there were positive indicators for the return of stability in the region. Iran-backed Houthi militants have attacked vessels in the Red Sea area since November 2023, disrupting global shipping lanes by forcing vessels to avoid the nearby Suez Canal and reroute trade around Africa, raising the costs for insurers.
Ocean carriers will require “a full and permanent” ceasefire between Israel and Hamas before they are confident enough to shift services back to the Red Sea and Suez Canal, according to marine management company Inchcape Shipping Services. A return to the Red Sea and Suez by ocean carriers will depend on both Israel and Hamas meeting the conditions agreed to in the ceasefire, the individual risk tolerance of each container shipping company and the willingness of insurance companies to underwrite vessels making the voyages. Before the Red Sea attacks began in November 2023, insurance for one-way transits was about 0.05% of the value of a ship, but that has doubled to approximately 1%, Greenwood said. That means a vessel valued at $100 million would have an insurance cost of $1 million for a single passage.
A new industry survey by maritime consultancy Drewry reveals that most container shipping stakeholders expect Suez Canal transits to resume before the end of 2025, while bracing for escalating U.S. Tariffs that could reshape global trade patterns. The survey found that 54% of respondents anticipate full-scale Suez Canal operations to resume by the end of 2025, with 29% projecting a 2026 reopening. Only 2% believe the situation will continue beyond 2030. Red Sea disruptions due to Houthi attacks on shipping and subsequent rerouting of trade flows around the Cape of Good Hope have pushed freight rates higher and cost Egypt at least $7 billion in lost Suez Canal revenue.
Regarding U.S. trade policy, Drewry’s survey indicates widespread expectations of increased tariffs. The most common prediction (32% of respondents) suggests the U.S. effective tariff rate will land between 5-10% by year-end, up from 2.4% in September 2024. More dramatically, 13% of respondents expect tariffs to exceed 20%, reaching levels not seen since the Great Depression. China appears most vulnerable to new U.S. tariffs, with 85% of respondents expecting additional duties. Mexico (76%), Canada (73%), and the European Union (60%) also rank high on the list of likely targets. Even potential beneficiaries of trade diversion, such as India (16%) and Vietnam (14%), aren’t considered immune from future tariffs. Ocean Carrier Maersk announced this month that it expects global container volume to grow by approximately 4% in 2025. However, the company acknowledged its outlook depends on several key factors—particularly the uncertainty surrounding the Red Sea’s reopening amid the current Israel-Hamas ceasefire in Gaza. Maersk projects its operating profit will fall between USD 0.0-3.0 billion in 2025, though this forecast is likely to shift as the year unfolds.
Import TEUs are up 15.93% this week from last week – with the highest volumes coming into Long Beach 23.2%, Los Angeles 14.3% and Savannah 12.4%
What’s happening at the ports and rails?:
You can find all the information on the below link where we cover port congestion, chassis issues and capacity lead times weekly at all U.S. and Canada Ports and rail heads on our website – click on the link below
CLICK HERE for port and rail updates
Norfolk: Due to the snowy weather, the Port of Norfolk and all terminals will be closed until Saturday the 22nd OR until port and road conditions improve. You can find updates on the Port of Virginia website: Click Here to visit their website
Los Angeles/Long Beach: More than 70 Teamster truck drivers from a local LA based carrier that hauls cargo from the Port of Los Angeles are on strike Thursday over pay changes and increasing health care costs. Drivers say they were forced to be paid per load rather than hourly which drivers say was not in their contract. The company has explained its financial hardships to the union and the union ignored their pleas for help. The company has enacted its best offer, which included several items requested from the union. If you are looking for immediate capacity, our Los Angeles location boasts a large drayage fleet, a large secured yard with plenty of storage space and a transload warehouse with immediate capacity to pull your containers for transloads. Our capacity is tendered to on a first come first serve basis. Contact the team at letsgetrolling@portxlogistics.com with your new orders today.
Charleston: SC Ports proudly welcomed the OOCL Iris to Wando Welch Terminal Tuesday, setting a new record for the largest vessel to call the Port of Charleston, at 16,828 TEUs. SC Ports has the deepest harbor on the U.S. East Coast at 52 feet. This critical depth allows mega container ships to access the Port of Charleston at any time, regardless of tides, enabling customers to quickly drop off and pick up cargo. The vessel arrives as SC Ports nears completion of a year-long critical infrastructure project along the terminal’s toe wall. The project will allow the berth to maintain a 54-foot depth, further supporting the 52-foot harbor depth. Our South Atlantic operation also has a drayage fleet of 12 trucks with drayage service to and from Savannah, Charleston and Jacksonville ports including hazmat as well as container yard space and we have a full service transload warehouse in Savannah and can handle any last-minute urgent transloads and cross docks Contact the team sav@portxlogistics.com for great rates and supreme customer service.
Did you know? Port X Logistics and Alliance Shippers are a part of US Multimodal Group, and additionally Alliance Shippers was recently recognized with the following intermodal rewards!
To find out more about how we can help service your intermodal lanes contact letsgetrolling@portxlogistics.com – See More below.
SONAR Data Import Images
