Bill Mongelluzzo

A strong Black Friday and Cyber Monday, coupled with rosy sales expectations, are spurring US retailers to boost their import forecasts for early 2024, according to the National Retail Federation.

A slower than anticipated shift of cargo back to the West Coast since ratification of the coastwide labor contract could accelerate in the coming months due to restrictions at the Panama Canal and this week’s hostilities involving container ships in the Red Sea, which could affect Suez routings.

Freight transportation interests say the lack of technological and financial support they need to meet the state’s clean air rules is putting “aggressive” zero-emission deadlines in doubt.

While shippers adapt to the complicated market environment in the short term, they are also casting a wary eye on annual service contract negotiations with carriers that will heat up early next year.

The performance gains on the world’s busiest trade lane in November came as US imports from Asia during the month plunged 12% from October, the traditional end of peak shipping season.

Global container ship overcapacity will compel carriers to increase blank sailings and service cuts to keep a floor under rates, which means shippers are likely to continue to see poor on-time performance on eastbound trans-Pacific services.

The facilities must adhere to new emissions-cutting rules implemented several months ago by regulators or risk daily fines approaching $12,000 per day.

The new rate move by carriers comes as the security situation in the Red Sea shows no signs of improving and amid retail restocking in the US ahead of an early Lunar New Year.

The Global Port Tracker calls for a year-over-year gain of 5.3% in US imports over the first six months of the year despite the uncertain security situation in the Red Sea.

The first shipments of hay were loaded into Evergreen containers at the inland hub and moved by Union Pacific to the Pierce County Terminal in Tacoma for shipment to China.

The crisis has been a logistical headache for container lines, but overcapacity in their fleets is enabling them to cover the loss of effective capacity being used up by the longer transits around southern Africa, Lars Jensen told TPM24.

In a sign of confidence in consumer demand, Global Port Tracker expects US imports for the first six months of the year will be up 7.8% compared with the first half of 2023.

Marine terminals, truckers and warehouse operators say the state must be mindful of the large costs and ambitious deadlines it is imposing on the freight transportation sectors to reduce emissions.

The entry of Hede International in the eastbound trans-Pacific comes as US imports from Asia have been rising on a year-over-year basis since October.

The railroads say they are deploying more intermodal railcars to Los Angeles-Long Beach and adjusting their operations so marine terminals can clear out rail containers and reduce dwell times following strong import volumes early this year.

The port is struggling to relieve excessive rail container dwells on its docks caused by an unexpected jump in imports and what some stakeholders say is an inadequate supply of railcars.

Carriers in the eastbound trans-Pacific have concluded 2024-25 service contracts with several of the largest US retailers at rates that are significantly higher than in last year’s contracts as carriers leveraged today’s relatively high spot rates.

Ocean carriers have signaled their belief that US consumer buying will remain strong into the second half of the year by announcing the launch or restart of 11 services involving the trans-Pacific and north-south trades.

All four container terminals at the Port of Oakland were closed for the day shift on Monday as demonstrators protesting the war in Gaza shut down a nearby major freeway and threatened to picket at the port.

The National Retail Federation has once again increased its forecast for imports into the 2024 peak shipping season, saying consumer spending remains strong despite geopolitical turmoil and stubbornly high inflation.