An explosion on a Yang Ming vessel at Ningbo port closed operations there late last week. The impacts were well contained, and most Ningbo container terminal operations are now up and running. The incident did, however, further highlight existing congestion issues at Asia ports. Bad weather is creating delays across a number of ports, including Ningbo, Shanghai, Xiamen, and Busan. Vessels are encountering berthing delays of at least a few days at these locations.
Rates from Asia to the US are still settling but remain at relatively high levels. Rates to East and Gulf Coast ports are still pushing $10,000 per FEU. Rates to West Coast ports have decreased more, and there is a wide range of pricing based on specific sailings; most are in the $6000-7000 per FEU range.
Rates from Europe to US ports will increase September 1 by $1000-1500 per FEU. Volume is up and space is tight on this lane.
Labor contract negotiations for US East and Gulf Coast ports remain stalled, with potential for a port labor strike effective October 1. If large cargo volumes are shifted to West Coast gateways out of concern for labor issues, we could see rates to West Coast ports increase again in the short term.
Please continue to provide forecasts 2-3 months in advance, and ensure bookings are placed 4 weeks before ready or sail date.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.