Freight Market Update: October 25, 2023
Updates From the Global Supply Chain and Logistics World | October 25, 2023
Trends To Watch
[Ocean - TPEB] Beginning in November, the Panama Canal Authority will further restrict the number of daily transits to 31 from the normal 36. This will bring with it the likelihood that container services will begin to see delays which they’ve been able to previously avoid. Expected delays would be in the 2-3 day range. Even with the delays, this timeline is still faster than shipping via Suez services for most Asia ports of loading. Heavy and time-critical cargo should consider routing via the U.S. or Canadian West Coast or utilizing rail or trucking services.
[Ocean - LATAM] Brazil: The water levels in the Amazon River at its critical passage points have reached an unprecedented level, making it impossible for container vessels to access the Manaus port. Due to the unpredictable river conditions, we cannot provide a concrete forecast at this moment when Manaus will be accessible again. Ocean carriers are closely monitoring the river conditions and will communicate promptly when safe operations can resume. Moreover, the Port of Navegantes has been closed since October 4th due to adverse weather conditions while ZIM announced a GRI for all cargo from East Coast South America (including Brazil) effective November 1 at a quantum of $450/ctr. As of Oct 21, some carriers have reopened with some draft restrictions. Despite these challenges, Brazil continues in its peak season. Guatemala: The ports of Puerto Barrios and Santo Tomas de Castilla have reopened after weeks of protests caused roadblocks. Conversely, the Port of Puerto Quetzal remains closed.
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The Week In News
Port of Long Beach Marks Its Busiest September on Record
The Port of Long Beach moved 829.4K TEUs in September, an increase of 11.8% from the same month last year, which marks the Port’s first monthly year-over-year cargo increase in 14 months. This suggests rising consumer confidence amid the holiday season and bodes well for cargo volume to rebound through the end of this year as the Port of Los Angeles also saw an increase in volume in September, with 748.4K TEUs moved––marking a 5.4% increase from the same month last year.
Strike Shuts Down Vital St Lawrence Seaway Freight Corridor
A strike has shut down the St. Lawrence Seaway freight corridor after 361 Unifor workers walked off the job Sunday, October 22, after failing to reach an agreement on wages. The St. Lawrence Seaway serves as a vital maritime trade corridor that links Montreal with the Great Lakes. The strike is expected to impact over 100 ships along the route and primarily disrupt movement toward Canadian provinces.
Forwarders Warn of Delays as Israel Air Cargo Disruption Continues
The Israel-Hamas conflict is impacting airfreight and express shipments to and from the region, leading to potential service disruptions. Multiple airlines have suspended direct flights to Israel, and most carriers are not accepting bookings for these affected routes. This situation has left goods that are already in transit stuck until further notice.