Port of LA/LGB - May Conditions Update

As nationwide import volumes are expected to remain high through October, businesses will continue to have to ask themselves, “can I be successful in this environment of transportation costs?” CAI International, one of the major container leasing companies in China, has announced they are keeping a hold on production of new containers. With this control, Victor Garcia, CEO, has emphasized the effect this will have on the international supply chain: no new containers, continued reduced space, freight rates will remain high.

After a decade of a buyer’s market, the shipping industry has shifted. Within the past year carriers have begun to understand their carrying capacity and will hold on to the power of the market for as long as possible. It is important to focus on integrated business planning; ask yourself and your customer: What is happening? How is it happening? When is it happening? By understanding your own priorities, you will regain some power back from the carriers and be able to alleviate some financial tension within your supply chain.

Nationwide Port Updates:
Port of Houston: Highest import volume in history recorded in March (~298,000 TEUs)
Port of Charleston: New terminal opened April 9th, capacity for an additional 700,000 TEUs
Port of NY/NJ: ~395,000 Import TEUs – 45% increase
Port of Savannah: 249,395 Import TEU’s – 58% increase

In good news – waiting time has decreased in Southern California; terminal wait times are around 90 minutes. We are still seeing an average of 7 days at anchorage with ~10 vessels at anchor at any given time. In the image below you will see the live look of container vessels in and waiting for the port of LA. We are not seeing any at outer anchorage and down to Huntington Beach like we did several weeks ago. This is a good sign of adapting to the new normal.