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Ocean Fast Facts
Because September typically signals "back to school" season, this month's Ocean Fast Facts begins with a "pop quiz" question regarding the 2007 container port volume statistics that have recently been released:
For 2007, what are the world's top 10 container ports in terms of (millions) TEUs?
| 1. Singapore |
27.93 |
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6. Rotterdam |
10.79 |
| 2. Shanghai |
26.15 |
7. Dubai |
10.65 |
| 3. Hong Kong |
24.00 |
8. Kaohsiung |
10.26 |
| 4. Shenzhen |
21.10 |
9. Hamburg |
9.89 |
| 5. Busan |
13.26 |
10. Qingdao |
9.46 |
Interestingly enough, the Ports of Los Angeles and Long Beach are not in the top 10 for 2007, but combined would make the world's 5th largest port in terms of TEU volume. The combined volumes for those ports would be 15.67 million TEU for 2007.
Source: Journal of Commerce, July 28, 2008.
Falling Into Peak Season!
Trans Pacific Peak Season Surcharges (PSS)
As of September 1, several carriers have begun to charge a minimal PSS. Others have announced that they will apply a full peak in the area of $400 per 40', especially for IPI (inland point intermodal) and AWS (all water service) to U.S. east coast. Meanwhile, some carriers are only proposing minimal peak season charges in the area of $25 per TEU.
Now that the Summer Games in Beijing are over, the corresponding factory and traffic restrictions for Chinese exports have been lifted. However, it is anticipated that container availability and vessel space will become more restricted as peak season shipping for the U.S. holiday season heightens into October.
AIT customers who anticipate shipments during peak season are reminded to forecast as accurately possible and allow up to 10 days to pre-book at origin to ensure container equipment and vessel space availability. Speak with your local AIT representative to determine which local markets are most impacted as the height of peak season approaches. Based on the past several shipping seasons, peak season surcharges would have been charged by the carriers for two months at this stage in the year.
Considering this is an unprecedented and unpredictable peak season, please speak with your AIT representative to verify all current PSS rates, as these will differ by carrier and routing options utilized for your shipments.
Booking Adjustment Fees - USA Exports
Customers should be advised that as a result of limited vessel space and container availability, ocean carriers such as Zim are charging and enforcing booking adjustment fees if customers are requesting advancement to earlier sailings or "rolling" their cargo to later sailings. Please be reminded of this potential additional charge when making export bookings and scheduling loading of your export containers.
Clean Truck Fees coming to the Port of Los Angeles / Long Beach
The "greening" of the ocean supply chain continues on the United States west coast.
Effective October 1, the ports of Los Angeles and Long Beach will begin collecting a new local-based fee for imports and exports delivered by truck into the ports terminals.
The fee is being assessed to ensure the development of environmental infrastructure projects such as subsidizing costs to purchase trucks that meet the emissions requirements of the clean trucks initiative in the Los Angeles Basin. The fee is going to apply as follows:
| LCL Export |
$3 W/M |
| LCL Import |
$2 W/M |
| FCL Import and Export |
$35 per TEU |
The September Ocean U.S.A. Export Report
As a reminder, ocean container availability and vessel space remains limited in certain U.S. locations. Areas that continue to be affected include Dallas, Denver, St. Louis, Minneapolis, Houston and Chicago. Other smaller markets such as Detroit and Columbus are seeing an impact as well.
Export ships remain at full capacity and some carriers are being restrictive with certain commodities (i.e. waste paper, scrap products) in order to focus on higher valued commodities such as semi-finished or finished goods.
In order to ensure container availability and vessel space for your export bookings, it is recommended you allow 7 to 10 days to help secure vessel space, especially for multiple container shipments. Last minute bookings are very difficult to secure with the ocean lines, but if you plan accordingly your chances of loading on earlier vessels improves significantly.
Special equipment such as open-tops, flat racks and refrigerated containers remain especially limited, so please allow additional time when requesting rates for these types of equipment. Contact your local AIT office to discuss alternatives and be mindful that rates may be higher to make an earlier sailing that fits your schedule demands and time constraints.
ILWU and PMA Contract Finalized July 28, 2008
The discussions between the ILWU, representing the Longshoremen at 29 United States west coast ports, and the PMA (Pacific Maritime Association), representing the ocean freight carriers, culminated with a tentative agreement for the pending contract that had expired on July 1. Operations at U.S. west coast ports are running normally.
Abandonment
- The act of refusing delivery of a shipment so badly damaged in transit that it is worthless.
- Damage to a vessel that is so severe that it is considered a constructive total loss.
Source: International Directory of Trade, 7th ed. Edward G. Hinkelman, 2006.
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The Parting "Wave"
The entire AIT Ocean Systems Team thanks you for your tremendous support this summer. Enjoy this autumn as the ocean industry "falls" into Peak Season!
Preview October 2008 AIT Ocean Newsletter:
A Post-Olympic view at Peak Season
If you have any questions or comments regarding the Ocean eNewsletter,
please contact Kevin Krause from the AIT Ocean Department. |
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