Shippers, please find the January 15th Trans-Pacific eastbound general rate increase (GRI) levels below:
Full container (FCL)
20’ - US$240
40’ - US$300
40’HC - US$340
45’ - US$380
Less Than A Container Load (LCL)
US$6 w/m
On January 31st is the Chinese New Year, rates will remain at the same level till that date. We
recommend communicating your capacity requirements to ETC International Freight System for the rest of January and February to insure space for you during this busy period. ETC International Freight System will handle your freight volume requirements with the proper planning to keep your supply chain unaffected. If you have any questions then please don’t hesitate to contact ETC International Freight System at 1-800-383-3157 or send us an email at Sales@etcinternational.com
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USA Advisory Delays at Terminals & Chassis Shortage |
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Forwarders, truckers and consequently the shippers, we are experiencing some congestion at the ports & shortage of truck chassis. The storm on the East Coast of last week added to the problem. |
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And so the ripple effects are still felt to date. Delays due to labor shortage and now an extreme chassis shortage. Drivers stand in line all day to come back empty handed as they are not able to get the containers. We are still dealing with limited trucker moves per day. We are not aware yet of when this situation will improve. We are trying to pick up our import containers that become available daily but are sometimes not successful due to these issues. Please keep in mind that ETC International Freight System its utmost to get your cargo moving, getting late gate to maintain the schedule. Often, we pull a container the night before to also insure the timely delivery and for a rather modest cost. |
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If you have any question, please call 1-800-383-3157 or email us at Sales@etcinternational.com |
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We thank you for your patience during this time. |
More shippers will access low intermodal price gains according to JOC source of 1/10/2014.
(Intermodal: Involving 2 or more different modes of transport to convey your goods)
Shippers expect the North American intermodal market for 2014 more predictable compared to how volatile other transportation modes, such as; ocean shipping and air cargo. This news is not good for investors, as shippers do not like rate fluctuations and sporadic service from other modes.
Intermodal marketing companies have gained too much capacity and are pricing low to keep their equipment moving. Shippers do not seem budgeting for intermodal rate increases. Survey indicates in August and September, they expect rates torise 1.5 percent through the third quarter of this year.. “The economy isimproving, but modestly with slow growth of the U.S. economy and moderate import traffic, intermodal freight volume will expand about 4 percent year-over-year in 2014, according to Larry Gross, a senior consultant for FTR Associates. He
expects domestic traffic to rise 6.5 percent and international volume to creep up 1 to 2 percent.
“Mexico is becoming a competitive hotbed, and railroads are looking at all the traffic going across the border and adding services,” said Bailey, who is also chairman of the Intermodal Transportation Institute at the University of Denver.
“We estimate that the over-the-road truckload market is roughly $200 billion in revenue compared to the domestic intermodal market at around $10 billion,” Wolfe Research said. “Hence, a 1 percent shift in volumes from truck to intermodal would generate about a 20 percent increase in domestic intermodal loads.”
Port of Tokyo
(JOC Source)
Shippers expect growth for the second consecutive year in fiscal 2014, which starts on April 1, amid a moderate recovery in the global economy, a Tokyo-based research firm predicted in a new report.
Yes, after two years of decline, loaded container cargo exports from nine major Japanese ports will increase 1.1 percent to 5.082 million twenty-foot equivalent units (TEUs) in fiscal 2013 and
then 3.1 percent to 5.242 million TEUs in fiscal 2014, Nittsu Research Institute and Consulting Inc. (NRIC) said.
“By item, exports of auto parts to the United States and China will show solid growth in fiscal 2014. Slumping shipments of auto parts to the 10-member Association of Southeast Asian Nations (ASEAN) will also get back on a recovery track in fiscal 2014,” NRIC said.
Exports of general machinery, electric machinery and chemical products will also likely post solid growth in fiscal 2014 due to expanding demand for them in foreign countries, NRIC said.
Loaded container cargo imports at the nine major Japanese ports will grow 2.9 percent to 7.495 million TEUs in fiscal 2013, but they will drop 1.6 percent to 7.373 million TEUs in fiscal 2014 as
consumer spending will be hit hard by the consumption tax hike on April 1, NRIC predicted.
Fiscal 2014, air cargo exports are estimated to rise 1.7 percent to 903,700 tons, but air cargo imports are estimated to fall 3.5 percent to 1.094 million tons.
The airline Airbus Takes Order Crown for 2013 While Boeing Sets Delivery Record
Sourced by AIN
Airbus CEO Fabrice Bregier expressed encouragement with his company's profitability "trajectory" during its annual press conference on January 13. (Photo: Airbus)
More of your cargo may be flying Airbus and Boeing. Airbus is setting a record with most valuable gross intake at $ 240.5 billion. Boeing sets a new record in deliveries, shipping 648 airplanes versus 628 for airbus. According to Airbus, decisions by customers to move toward larger aircraft in all segments (A321, A330-300, A350-1000 and A380) yielded a positive result on its revenues.
“These benchmark results are feeding nicely into our profitability targets, and I am proud to report that the trajectory is showing strongly upward,” said Airbus president and CEO Fabrice Bregier.
For our international shippers
Trans-Pacific Container Lines is shaping up like 2013 with modest growth in demand & fastest growth in capacity. Container Lines globally are ordering bigger ships with capacity from 8000 to 18000 20 foot-equivalent container units. It costs less using those mega ships with $ 300 to $ 400 savings per 40’ container Liner companies meeting shippers’ demand for capacity since the dawn of container shipping more than 50 years ago, Kemmsies said. The industry is plagued with overcapacity now because of the latest building boom, and will likely remain so until possibly 2016, but that’s the nature of a capital-intensive industry, he said.
Global vessel capacity has increased 37 percent since 2008, but demand has grown only 16 percent, according to research analyst Alphaliner. That’s whyfreight rates have been so depressed. Although rates move up and down according to seasonal demand, the trend the past year has been noticeably downward.
The expectation for cargo growth in 2014 is a slim increase. Journal of Commerce Economist
Mario Moreno projects growth in U.S. imports will be about 6 percent over 2013, better than the TSA’s expectations of 3 to 4 percent in the trans-Pacific. With global capacity likely to increase more than 7 percent this year, the gap between capacity supply and demand will narrow marginally. 2014 story will be structural changes in the shipping industry to reduce
costs and operate more efficiently, with carriers expanding existing vessel-sharing alliances and forming new ones. If regulators approve the P3 Network among Maersk Line, Mediterranean
Shipping Co. and CMA CGM will begin operations in the spring. This alliance of the world’s three largest container lines will operate 252 vessels, accounting for 40 to 42 percent of the capacity in the Asia-Europe and trans-Atlantic trades and 24 percent of the capacity in the trans-Pacific.
A projection for carrier costs may decline as they deploy larger, more efficient vessels. The P3, for example, will deploy vessels with an average size of 12,675 TEUs in their Asia-Europe services, according to Alphaliner. Vessels on the Asia-to-East Coast route via the Suez Canal will average 8,500 TEUs, and vessels in the Asia-to-West Coast trade will range in size up to
11,500 TEUs.
Photo (overseas container port) in desktop
Economic growth expected to return to Europe in 2014, and China’s economy is projected to grow faster. U.S. exports to those major trading partners will increase. China also could modify
its decision to limit government spending and emphasize domestic consumption.
China’s leadership found that “slamming the brakes” on government spending wasn’t good, and Kemmsies anticipates an increase in infrastructure spending in 2014, which should boost
demand in China for imports from the U.S.
Adding to the mix, contract negotiations between the International Longshore and Warehouse Union and waterfront employers also will be a significant event in 2014. Although expiration of the existing contract on July 1 shouldn’t affect overall container volumes, Conrad said shippers committed to the West Coast likely will ship early this year, while other retailers will divert a portion of their volume to Canadian ports or to the East Coast.