Rising imports and rates: Positive signs for US supply chains?

Imports to the US have been on the rise, alongside rates from the Far East to the US. In July, #imports to the US rose by 5% from June, with a total of just under 2.2 million #TEU. This spike is reminiscent of a pre-pandemic peak season uptick, despite paling in comparison to July imports from 2022, which were 13.6% higher.

This trend has also been reflected in global spot rate averages from China/East Asia to the #US East and West Coast. According to data from the Freightos FBX index, the average #spot rate has been steadily increasing every week since July, with a 22.5% increase in #rates to the East Coast and a 44.7% increase in West Coast rates.

On the ground, operations are running smoothly as well, with congestion decreasing to minimal levels and West Coast labour disputes put to rest. Norfolk, which in recent weeks had as many as 19 vessels waiting to berth due to #vessel bunching, has reduced this to 0. Meanwhile, on the West Coast, there is currently no reported congestion.

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Asia?

China?

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China's import and export figures for July have returned worse-than-expected results, further reflecting China's sluggish post-COVID recovery.?

• Exports fell by 14.5%, while imports decreased by 12.4%.?
• This follows June, where exports fell by 12.4%, coinciding with a fourth consecutive month of contracting factory activity levels.?
• Last month, Reuters conducted a poll of 28 economists, with their median estimate predicting a 12.5% fall in outbound shipments for July.

Air

Central China to USA and Europe?

From SHA to Europe and the US, rates are expected to rise this week.

• This rise is due to an increased volume of e-commerce bookings.

From NGB to Europe, rates have remained stable, meanwhile to the US , rates have risen .?

• The final rate is offered on a case-by-case basis.

North China to USA and Europe:

From TSN to Europe and the US, rates have remained mostly stable this week.

• Rates for Asiana flights have increased though.

From PEK to Europe and the US, rates have remained stable this week.?

• Handling times at PEK are high however, which could result in delays this week.

From TAO to Europe and the US, rates have remained stable this week.

South China to USA and Europe:

From CAN to Europe and the US, rates have remained stable this week.?

• There has been an influx of ecommerce bookings recently and rates could rise in future as space becomes tight.
• All shipments will need to be checked with the carrier for rates on a case-by-case basis.

From SZX to Europe, rates have remained stable, while to the US, rates have decreased slightly.?

• All shipments will need to be checked with the carrier for rates on a case-by-case basis.

From XMN to Europe, rates have remained stable, while to the US, rates have increased slightly.?

• All shipments will need to be checked with the carrier for rates on a case-by-case basis.

North America

USA?

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Container imports into the US were on the rise in July.

• Import figures for July rose by over 5% from June, reaching just under 2.2 million TEU.
• This increase is more typically of a muted pre-pandemic peak season increase, however in comparison to July 2022, import figures are down 13.6%.?

Congestion across the US has been improving, with overall operations running smoothly.

• On the West Coast, there are currently no ships waiting to berth?
• On the East Coast, Norfolk, which in recent weeks, had as many 19 vessels waiting to berth due to vessel bunching, has reduced this backlog to 0.?

Canada?

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Congestion on the Canadian West Coast continues to improve following the labour agreement between the ILWU Canada and the BCMEA.?

• There are currently 6 vessels waiting to berth at Vancouver and 1 at Prince Rupert. The railhead delays are currently 8 and 10 days respectively.?
• The backlog following the strike action is expected to be cleared in the coming weeks.?

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Europe

Benelux

Ocean

Here is an operational update for ports across Europe.

• Port of Antwerp yard utilisation is currently at 60-65%, construction is ongoing at terminals but is not having a negative impact on productivity.?
• The Port of Rotterdam has deployed 75 holiday workers to fill gaps left by workers on holiday and yard utilisation currently stands at 55-60%.
• The Port of Hamburg has experienced some minor delays due to strong winds limiting vessels movements, however the port has swiftly dealt with the backlog and delays are expected to be minimal.?

UK?

Ocean

The ONS (Office of National Statistics) has recently released June trade figures for the UK.

• The value of goods imported into the UK in June fell by 5.8% or ￡2.9 billion.
• The value of goods imported from non-EU countries experienced a sharp, 15.8% drop in June. The largest monthly decrease since April 2020.?
• Meanwhile, the value of the UKs exports increased by 1.8% in June, spurred on by an increase in value of exports to non-EU countries.
• These figures reflect a positive trend for UK based exporters but also demonstrate that retailers and businesses are still working through a destocking cycle amid weak consumer demand.?