On The Up And Up

Vessels are currently anchoring for an average of 2.5 days, compared to the usual few hours.

To resolve the backlog, the Georgia Ports Authority (GPA) is utilizing its eight berths and speeding up container movements by truck and train.

Landside operations, supported by terminal capacity upgrades, have remained unaffected. The GPA is extending gate hours and breaking records for container movements via rail and truck.

Although Hurricane Milton did not impact Savannah directly, it disrupted vessels crossing the Panama Canal and halted operations at Florida ports like Jacksonville, Tampa, and Port Everglades. Other East Coast ports are not experiencing significant vessel delays.

The recent three-day strike by the International Longshoremen’s Association (ILA) on the East and Gulf coasts is not expected to disrupt supply chains ahead of the holiday season.

The National Retail Federation (NRF) predicts 2024 retail sales will grow 2.5% to 3.5% over 2023, with October imports forecasted to rise by 3.1% from the previous year.

West Coast ports are expected to handle more time-sensitive holiday shipments in October, as retailers aim to stock for Black Friday.

The summer surge in imports was driven by contingency planning rather than increased demand. While short-term congestion may occur, significant delays are unlikely.

Total 2024 imports are expected to be 12.1% higher than in 2023, though February 2025 imports are projected to drop by 11.2% due to the Lunar New Year holidays in Asia.

Booking inquiries have slowed for carriers, preventing them from having the “buffer” they normally maintain in order to not be light on vessels as a result of last minute cancellations or no-shows.

Carriers are offering flexible rate deals, especially to large-volume customers, with spot rates dropping week over week.

A price war has emerged as major players like Maersk and smaller carriers have cut rates amid softening demand.

Plans for October rate increases have been postponed to early November.