The MOL Maneuver container ship sails into port underneath the Verrazano-Narrows Bridge in the decrease bay of the New York Harbor on March 25, 2021 in New York City.
Gary Hershorn | Corbis News | Getty Images
Historic import and export container processing in the month of August pushed the Port of New York and New Jersey to the No. 1 spot outpacing each the ports of Los Angeles and Long Beach.
This comes because the movement of trade continues to maneuver away from the West Coast with logistics managers fearful about a labor strike or lockout. The Port of Los Angeles ranked third in the nation in August, shifting 805,314 complete containers. That was 37,877 lower than the Port of New York and New Jersey, which moved 843,191. The Port of Long Beach got here in second, shifting 806,940 export and import containers.
“We are exceeding pre-Covid numbers. It is astonishing, and it is a credit to the men and women who are moving the cargo with such efficiency,” mentioned Kevin O’Toole, chairman of the Port Authority. (*1*)
This August was the busiest August in the historical past of the Port of New York and New Jersey and the fourth busiest month ever. The port’s 5 busiest months have all occurred in 2022.
More East Coast trade, and extra port congestion
The CNBC Supply Chain Heat Map for the U.S. reveals how the continued enhance in trade has East Coast ports and Gulf port because the winners in this motion of freight. Logistics firms and warehouses that serve these ports are additionally reaping the advantages of the extra containers. CSX and Norfolk Southern rails transfer the import and export containers on the East Coast. BNSF, owned by Berkshire Hathaway and Union Pacific transfer the containers in and out of the Port of Houston.
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The enhance in container processing is including to the wait off the East Coast and Gulf ports. The congestion provides to delays in arrival instances for producers needing parts to finish their merchandise or to put completed merchandise on retailer cabinets to be bought.
During the week of September 19, MarineTraffic has monitored 28 container ships ready off of the Port of Savannah with a median wait of 9.9 days. For the Port of New York and New Jersey, 12 container vessels are ready for a median of 9 days. The Port of Houston has 25 containerships anchored, ready on common eight days.
“While volumes are up, the congestion at the East Coast ports may be at an inflection point after months of record-breaking import levels,” mentioned Josh Brazil, vp of provide chain insights for Project44.
Project44 knowledge reveals that the variety of vessels queued on the Port of Savannah has dropped from over 30 final month to solely 16 immediately. New York congestion is additionally barely down. However, Houston is nonetheless backed up with 20 vessels, roughly the identical quantity as final month.
“During Q4 the backlogs at ports might continue to ease by a drop in vessel numbers resulting from consumer demand slowing down,” Brazil mentioned.
Maritime costs falling
The movement of trade away from the West Coast has decreased the demand for vessel house, main Far East to West Coast maritime freight costs to fall.
“When taking out the inflation in retail sales, U.S. retail sales were flat from last month so demand has not fallen sharply,” mentioned Peter Sand, chief transport analyst for Xeneta. “Shippers are still bringing in a lot of containers, on the East Coast and West Coast and Gulf Coast as well.”
Xeneta has tracked a new file divergence between spot charges from the Far East to the coasts.
“That is a sign of congestion all but cleared on the West Coast, with volumes coming in being manageable for ports and terminals,” Sand mentioned. That has triggered charges to fall quicker on the transpacific route than for East Coast-bound cargo.
Logistics costs are one of many key inflationary triggers the Federal Reserve has no management over.
“Congestion on the US East Coast is keeping rates elevated, in a combination with added disruption to that coast coming from troubles in North Europe,” he added, referring to latest labor strikes by port employees in the U.Ok. which have pressured Europe’s port community.
Shippers are nonetheless hesitant to return re-routed cargo to the U.S. West coast, Sand mentioned.
The CNBC Supply Chain Heat Map knowledge suppliers are synthetic intelligence and predictive analytics firm Everstream Analytics; international freight reserving platform Freightos, creator of the Freightos Baltic Dry Index; logistics supplier OL USA; provide chain intelligence platform FreightWaves; provide chain platform Blume Global; third-party logistics supplier Orient Star Group; marine analytics agency MarineTraffic; maritime visibility knowledge firm Project44; maritime transport knowledge firm MDS Transmodal UK; ocean and air freight price benchmarking and market analytics platform Xeneta; main supplier of analysis and evaluation Sea-Intelligence ApS; Crane Worldwide Logistics; and air, DHL Global Forwarding; freight logistics supplier Seko Logistics; and Planet, supplier of worldwide, every day satellite tv for pc imagery and geospatial options.