October Monthly Container Import Volumes Remain Above 2.4M TEUs, Straining U.S. Maritime Logistics

maritime surveillance More shipments of export cargo and import cargo in international trade means greater energy consumption in transportation sector import. maritime surveillance

For four consecutive months, U.S. container imports have surpassed 2.4 million twenty-foot equivalent units (TEU)—a threshold that has historically strained U.S. maritime logistics. In October 2024, U.S. container imports totaled 2,494,635 TEUs, a slight 1% decline from September’s 2,520,935 TEUs and just 2.4% lower than this year’s high of 2,556,180 TEUs in July.

In October, U.S. container imports from China reached 960,016 TEUs, marking the fifth month in 2024 where import volumes from the country exceeded 900,000 TEUs. This trend underscores the strength of U.S.-China trade in 2024, especially compared to 2023 when monthly imports never surpassed the 900,000 TEU mark. Since reaching a record high of 1,022,913 TEUs in July 2024, imports from China declined by 6.1% in October, yet they remain 8.3% higher than in the same month last year.

The November update from Descartes on logistics metrics underscores the continued strength of container imports in 2024. However, U.S. importers may face ongoing challenges as USMX/ILA contract negotiations continue, port delays worsen, and the ongoing conflict in the Middle East contributes to global supply chain disruptions. These factors are expected to fuel supply chain volatility throughout the remainder of the year.

In this Article…

U.S. container imports reached 2,494,635 TEUs in October 2024.
Imports from China were 960,016 TEUs in October, down 3.0% from September and down 6.1% from July’s record high of 1,022,913 TEUs.
October 2024 imports decreased by 1.0% over September and increased by 8.1% compared to October 2023.
For the fourth month in a row, the top West Coast ports captured more share than the top East and Gulf Coast ports.
With a fourth consecutive month of elevated import volumes, port transit delays increased at the majority of the top 10 U.S. ports in October.
USMX and the ILA will continue negotiations through January 15, 2025, which could impact operations at South Atlantic and Gulf Coast ports and affect U.S. supply chains.
Ongoing Houthi attacks and the Israel-Hamas conflict continue to force shipping route diversions from the Red Sea to the Cape of Good Hope.
Key points to monitor in 2024 to manage supply chain risks.
Recommendations to help mitigate global shipping challenges.

U.S. container imports remain elevated, though diverge slightly from traditional seasonal increase.

October imports reached 2,494,635 TEUs, marking the fourth consecutive month in 2024 with container volumes exceeding 2.4 million TEUs—a level that led to port congestion and delays during the pandemic (see Figure 1). Versus October 2023, TEU volume was higher by 8.1% and up a significant 20.5% over pre-pandemic 2019. For the first 10 months of 2024, import volumes have grown by 13.1% over the same period in 2023 and by 16.9% over the same period in pre-pandemic 2019. By contrast, import volumes for the first 10 months of 2023 grew by just 3.4% over pre-pandemic 2019, underscoring again the impressive performance of container imports in 2024.

Figure 1: U.S. Container Import Volume Year-over-Year Comparison

global trade import — Source: Descartes Datamyne™

In the previous six years, import volume increased from September to October, due in part to October being one day longer and having no major holidays. October 2024 volumes, however, reversed this trend, albeit with a modest 1% drop over September. While October volumes remain elevated, this slight decrease could stem from contingency planning for labor unrest at East and Gulf Coast ports and more front-loading of volumes by U.S. importers from August through September (see Figure 2).

Figure 2: September to October U.S. Container Import Volume Comparison

In October 2024, container import volumes at the top 10 U.S. ports declined by 25,112 TEUs, a 1.2% decrease compared to September 2024 (see Figure 3). The ports of Long Beach (up 30,222 TEUs), Houston (up 7,327 TEUs), and Tacoma (up 2,925 TEUs) saw the largest gains. In contrast, the ports of Los Angeles (down 39,062 TEUs), Norfolk (down 14,963 TEUs), and Charleston (down 8,791 TEUs) experienced the most significant month-over-month declines.

Figure 3: September 2024 to October 2024 Comparison of Import Volumes at Top 10 U.S. Ports

In October 2024, U.S. import volume from China reached 960,016 TEUs, a 3.0% decline (28,534 TEUs) from September and 6.1% lower than the peak in July 2024 (1,022,913 TEUs) (see Figure 4). Year-over-year, October imports from China increased 8.3%, reflecting the overall upward trend in 2024. The top two commodity categories (HS-2 codes) for October 2024 remained consumer goods: HS-94 (Furniture, Bedding, etc.) and HS-95 (Toys, Games, and Sports Equipment, etc.). China accounted for 38.5% of total U.S. container imports in October, a 0.7% decrease from September and 3.0% below the February 2022 peak of 41.5%.

Figure 4: October 2023–October 2024 Comparison of U.S. Total and Chinese TEU Container Volume Relative to Chinese Import Record

In October 2024, U.S. container import volume from the top 10 countries of origin (CoO) fell by 36,450 TEUs, representing a 2% decline from September (see Figure 5). Among these countries, Japan (up 11,841 TEUs) and India (up 5,141 TEUs) experienced the largest volume increases. In contrast, China (down 29,409 TEUs), South Korea (down 7,807 TEUs), and Taiwan (down 7,443 TEUs) recorded the most significant volume decreases.

Figure 5: September 2024 to October 2024 Comparison of U.S. Import Volumes from Top 10 Countries of Origin

West Coast ports maintain lead in import share for fifth consecutive month.

For the fifth consecutive month, the top five West Coast ports continued to capture a larger share of container import volumes compared to their East and Gulf Coast counterparts. October data reveals only slight shifts in distribution: the West Coast’s share edged up from 45.7% in September to 45.8% in October, while the East and Gulf Coast ports’ share dipped slightly from 39.6% to 39.4%. Overall, the dominance of the top 10 ports remained steady, with their combined share of total container imports slipping only marginally from 85.3% in September to 85.2% in October (see Figure 6).

Figure 6: Volume Analysis for Top Ports, West Coast Ports and East and Gulf Coast Ports

October sees increased transit delays at majority of top 10 U.S. ports.

As a potential result of the brief ILA strike at the beginning of the month, East and Gulf Coast port delays extended while, overall, delays worsened for seven of the top 10 U.S. ports. Transit delays at the West Coast ports of Long Beach, Oakland, and Tacoma saw marginal improvements. The East Coast’s Port of Savannah saw the largest rise, with transit times increasing by 1.5 days—from 7.5 days in September to 9.0 days in October. Meanwhile, the Port of Tacoma showed the most improvement, reducing delays by 0.4 days, bringing transit times down from 7.5 days in September to 7.1 days in October.

Figure 7: Monthly Average Transit Delays (in days) for the Top 10 Ports (Aug. 2024 – Oct. 2024)

Note: Descartes’ definition of port transit delay is the difference as measured in days between the Estimated Arrival Date, which is initially declared on the bill of lading, and the date when Descartes receives the CBP-processed bill of lading data.

Houthis committed to continuing Red Sea blockade.

On news that Israeli shipping companies are selling assets to other companies, Yemen Houthis reinforced their commitment to maintaining their Red Sea blockade. With shipping attacks and threats, the conflict in the Middle East continues to divert carriers away from the Suez Canal to the Cape of Good Hope, raising carrier costs. Shipping concerns will likely increase if the Middle East is further destabilized.

Gulf Coast imports rise in October 2024.

Gulf Coast imports grew for the third month in a row, increasing by 1.9% in October (230,832 TEUs) over September (226,458 TEUs) (see Figure 8). Port transit times at Gulf Coast ports worsened in October, with delays increasing by 13% overall.

Figure 8: November 2023 to October 2024 U.S. Gulf Coast Container Imports

United States Maritime Alliance (USMX) and International Longshoremen’s Association (ILA) temporarily extend bargaining period to January 15, 2025.

On October 1, nearly 50,000 members of the ILA went on strike across South Atlantic and Gulf Coast ports. On October 4, a tentative agreement was reached to extend the collective bargaining period until January 15, 2025; subsequently, ILA workers returned to work on October 4. On October 25, USMX and ILA announced in a joint statement that they will resume contract discussions in November on outstanding issues. Likely a result of the short labor disruption, October’s data shows longer port transit delays at East and Gulf Coast ports compared to September, and that the top five West Coast ports gained a marginal increase in volume share over the top five East and Gulf Coast ports.

Managing supply chain risk: what to watch in 2024.

U.S. container import volume remained above the 2.4 million TEU mark in October 2024 while decreasing slightly from September volumes. The economy continues to exceed expectations, however, a fourth month of elevated container import volumes combined with increasing port delays and the ongoing conflict in the Middle East may create challenges for global supply chains. Here’s what Descartes will be watching for the remainder of 2024:

Monthly TEU volumes between 2.4M and 2.6M. This level will continue to stress ports and inland logistics until infrastructure improvements are made. With four consecutive months of elevated volumes, ports may be beginning to show signs of stress.

Port transit wait times. If they decrease, it’s an indication of improved global supply chain efficiencies or that the demand for goods and logistics services is declining. October 2024 transit delays increased at the majority of top 10 U.S. ports largely due to elevated import volumes over the past four months. The most significant increases were seen at East Coast ports.

Expanded tariffs and other potential ‘protectionist’ trade policies*. Depending on the short- to medium-term political priorities of the incoming Trump administration, there may be broader and deeper tariffs applied to a wide array of goods imported by the U.S. This could compel U.S. importers to significantly re-engineer their supply chains, putting additional pressure on global logistics infrastructure.

The economy. The U.S. is an import-driven economy, so economic health is an important indicator of container import volumes. Following the September Federal Open Market Committee (FOMC) meeting, the Federal Reserve borrowing rate was lowered 50 basis points to 5.1% while reported inflation was 2.5%. According to the Bureau of Labor Statistics August employment report, the unemployment rate remained mostly unchanged at 4.2% while employers added 142,000 jobs. The next FOMC meeting is scheduled for November 6-7.

Middle East conflict. Houthi attacks are continuing to influence carriers to forego the Suez Canal, extending transit times around the Cape of Good Hope. The impact of diversions away from the conflict is still minimal on volumes or transit delays for East and Gulf Coast ports.

ILA/USMX contract negotiation. While job action has been halted at East and Gulf Coast ports, negotiations are ongoing, so it will be important to monitor these actions until a final contract is ratified.

*New with this month’s report.

Consider recommendations to help minimize global shipping challenges.

October U.S. container imports volumes reflect the continued robust performance seen throughout 2024. With a fourth consecutive month of elevated volumes, port transit delay times increased at the majority of top 10 U.S. ports compared to September. ILA/USMX negotiations remain ongoing until a final contract is reached, which is targeted for January 15, 2025. The ongoing conflict in the Middle East is creating pressure on global supply chains that could cause disruptions throughout the remainder of 2024. Descartes will continue to highlight key Descartes Datamyne, U.S. government and industry data in the coming months to provide insight into global shipping.

Short-term:

Monitor port volumes and delays to assess trade disruptions as imports remain between the 2.4M and 2.6M levels that have historically stressed U.S. maritime logistics infrastructure.
Track the Middle East conflict as carriers divert shipping around Africa, impacting shipping capacity and timeliness.
Evaluate the impact of inflation and the Russia/Ukraine and Israel/Hamas conflicts on logistics costs and capacity constraints. Ensure that key trading partners are not on sanctions lists.
Consider modelling the impacts of increased tariffs on imported goods, and whether a change in sourcing strategy could mitigate potentially higher costs.

Near-term:

For companies that have cargo moving through the Suez Canal, evaluate the impact of extended rerouting caused by Middle East conflicts.

Long-term:

Evaluate supplier and factory location density to mitigate reliance on over-taxed trade lanes and regions of the globe that have the potential for conflict. Density creates economy of scale but also risk, and subsequent logistics capacity crisis highlights the downside. Conflicts do not happen “overnight” so now is the time to address this potentially business disrupting issue.

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Global Logistics, Global Trade Daily, Uncategorized

Maritime Transport Cut Sulfur, but then came the Climate Downside

July 29th, 2024 Peter Frerichs Leave a comment

In January 2020, the International Maritime Organization (IMO) enforced new emissions standards intended to cut global maritime vessel pollution. A major undertaking that had been years in the making, the IMO had pledges from countries across the developed and developing world, rendering the initiative perhaps the greatest collaborative environmental achievement to date.

The most commonly used marine fuel at the time was estimated to have approximately 2.7% of sulfur content. The IMO’s objective was to ban those vessels with a sulfur content higher than 0.5%, and over 170 countries enthusiastically agreed.

Yet, a recently published paper in Communications Earth & Environment suggests that the impact of the clean air regulations could very likely be an “inadvertent geoengineering event.” In short, it could have aided in boosting, not lowering, global average temperatures over the past 2 to 3 years.

The shipping industry has long been under pressure to reduce sulfur emissions. The pollutant is an element of acid rain, which contributes to the acidification of the oceans, harming wildlife and vegetation. Yet, the same pollutant reacts with water vapor to create aerosols that reflect sunlight back into space. These aerosols, at high levels, have a cooling effect, and some researchers are positing that the pre-IMO enforced emissions could have helped mitigate the warming effect.

Last year’s record-breaking heat was extreme. Most of the world’s scientists cite 2023 as the hottest year on record, and the IMO rule change resulted in an 80% reduction in sulfur dioxide emissions. While much research remains, a decrease in sulfur emissions is just potentially one factor of why 2023 was so hot. The El Nino weather phenomenon caused a spike in global temperatures and the undersea volcanic eruption of Hunga Tonga was a highly unusual event estimated to have had an impact on the warming of the Earth.

The study is being treated with great caution. The positive health impacts alone from less pollution are undoubtedly improved with a cutback of sulfur. However, should this end up being an “inadvertent geoengineering event,” the ripple effects on the larger environmental movement will be noticeable.

Global Logistics, Global Trade Daily, News, United states news

MARAD Announces $4.8 Million Funding Opportunity for U.S. Marine Highway Program

May 25th, 2024 Tim Jay Leave a comment

In a recent announcement, the U.S. Department of Transportation’s Maritime Administration (MARAD) unveiled a Notice of Funding Opportunity, making $4.8 million available for Fiscal Year 2024 through the United States Marine Highway Program (USMHP).

The USMHP aims to enhance the movement of freight via America’s navigable waterways, presenting an efficient, sustainable alternative to road and rail transport. This initiative not only strengthens national supply chains but also reduces emissions and alleviates congestion.

Since its inception, the Marine Highway Program has distributed over $103 million to public and private organizations, fostering maritime transport options and funding essential freight infrastructure to bolster supply chain resilience.

The program’s evaluation criteria include the impact on goods movement, non-federal funding investment levels, project readiness, climate change and sustainability considerations, equity, and workforce development.

Applications must be submitted through grants.gov by 11:59 p.m. EST on July 12, 2024. For additional information, visit the USMHP website here. Potential applicants may also contact the USMHP staff via email at mh@dot.gov or by phone at 202-366-1123.

Global Logistics, Global Trade Daily, International Trade, News, Ocean Ports

Maersk Infuses $600 Million into Nigeria’s Port Infrastructure, Bolstering Maritime Trade Expansion

May 1st, 2024 Tim Jay Leave a comment

A.P. Moller-Maersk (Maersk) has unveiled a substantial $600 million investment geared towards enhancing Nigeria’s port infrastructure, marking a pivotal step towards fostering additional container shipping services within Nigerian ports. The announcement was made by Robert Maersk Uggla, Chairman of Maersk, during discussions with Nigerian President Bola Tinubu on the sidelines of the World Economic Forum Special Meeting on Global Collaboration, Growth, and Energy for Development in Riyadh, Saudi Arabia, on April 28th.

President Tinubu lauded the investment, emphasizing its synergistic alignment with the administration’s ongoing commitment to refurbishing Nigeria’s eastern and western seaports, already earmarked for a $1 billion investment. Furthermore, Tinubu reaffirmed his administration’s unwavering support for port modernization initiatives and the implementation of the national single window project aimed at streamlining port processes through automation.

Expressing gratitude for Maersk’s contribution to Nigeria’s economic landscape, Tinubu highlighted the nation’s receptivity to foreign investment, citing Nigeria as a prime destination for lucrative business ventures. He underscored the country’s potential for robust revenue expansion and emphasized the imperative to minimize trans-shipments from larger vessels to smaller ones.

Uggla echoed Tinubu’s sentiments, underscoring Nigeria’s strategic significance in accommodating larger containerships along the West African coast. Recognizing the burgeoning demand for expanded logistics services, particularly in Lagos, Uggla outlined Maersk’s commitment to fortifying port infrastructure and facilitating the seamless operation of larger vessels. He emphasized the immense growth potential inherent in Nigeria’s maritime sector and reiterated Maersk’s steadfast dedication to nurturing mutually beneficial partnerships with Nigerian authorities.

In light of recent developments, the West Africa Container Terminal (WACT), operated by APM Terminals (APMT), has inaugurated a state-of-the-art four-lane in-gate facility at Onne Port, Rivers State, Nigeria, further augmenting the region’s maritime infrastructure and paving the way for enhanced trade facilitation.

Archives, Global Logistics, Global Trade Daily, News

Celebrating Maritime Excellence: AOTOS Honors Industry Leaders at 54th Annual Awards Gala

December 6th, 2023 Tim Jay Leave a comment

Mark W. Barker, George Pasha IV, and Adam Vokac were recently recognized at the 54th annual Admiral of the Ocean Sea (AOTOS) Awards hosted by the United Seamen’s Service (USS). This prestigious event, held at the Sheraton New York Times Square Hotel, celebrated their outstanding contributions to the maritime industry.

The trio received the traditional silver statuette of Christopher Columbus, acknowledging their significant impact on the industry. The ceremony, attended by nearly 600 individuals, also highlighted the bravery of American seafarers who demonstrated exceptional courage at sea.

LTG Kenneth R. Wykle, USA (Ret.) and Chairman of the USS AOTOS Committee, expressed admiration for the honorees, stating, “We honor the achievements of these deserving individuals whose worthy contributions to the industry have left an indelible mark. All three of our recipients are accomplished, well-known leaders, and it is our privilege to recognize them with AOTOS Awards this year.”

In their acceptance speeches, the awardees expressed gratitude to family, friends, mentors, and the USS, addressing challenges and opportunities within the logistics and supply chain industry.

Mark W. Barker highlighted the significance of the Great Lakes supply chain, emphasizing its critical role in the North American economy. He expressed gratitude to the United Seamen’s Service for recognizing the efforts of mariners and providing global support to the mariner community.

George Pasha IV tackled the maritime worker shortage issue, emphasizing the need for investment in training and education. He called for lowering barriers for entry into the profession and supporting the transition of service members into commercial roles. Pasha expressed deep respect for seafarers and commended the United Seamen’s Service for their tireless efforts.

Adam Vokac emphasized the opportunity to build a better maritime industry, asserting the commitment of the Marine Engineers’ Beneficial Association (M.E.B.A) and its members to face challenges head-on. He underscored the dedication of American mariners and longshoremen during national crises, emphasizing their unique role in upholding resilience.

The event’s proceeds contribute to USS community services abroad for the U.S. Merchant Marine, seafarers of all nations, and U.S. government and military overseas. USS President Edward R. Morgan and Executive Director Roger T. Korner lead the organization, with Barbara Spector Yeninas Associates serving as AOTOS Event Coordinator.

The AOTOS Awards Gala not only recognizes excellence in the maritime sector but also serves as a platform to address crucial issues affecting the industry’s future.

Archives, Global Logistics, Global Trade Daily, News

US Department of Transportation Bolsters Defense and Economic Supply Chain through Maritime Programs

October 18th, 2023 Tim Jay Leave a comment

The U.S. Department of Transportation’s Maritime Administration (MARAD) Enhances Maritime and Tanker Security Programs, Reinforcing U.S. National Defense and Economic Resilience.

Today, the U.S. Department of Transportation’s Maritime Administration (MARAD) has declared the full enrollment of its Maritime Security Program (MSP) and Tanker Security Program (TSP). These essential initiatives offer the Department of Defense (DoD) access to a fleet of U.S.-flagged sustainment sealift vessels and product tankers, ensuring readiness during times of armed conflict or national emergency. Simultaneously, these programs fortify the U.S. supply chain and contribute to job creation.

“In peacetime, our U.S.-flagged commercial fleet plays a vital role in our supply chain. In times of war and crisis, it supports military missions worldwide,” emphasized U.S. Transportation Secretary Pete Buttigieg. “In the years to come, these vessels will be instrumental in delivering critical goods, strengthening both our economy and national security, and providing quality employment for American mariners.”

The MSP has chosen the LIBERTY POWER and TULANE vessels, both operating under Liberty Global Logistics, LLC in Lake Success, N.Y., and Fidelio Limited Partnership in Ponte Vedra Beach, Fla., respectively. The U.S.-flagged LIBERTY POWER, a twelve-year-old roll-on roll-off vessel (RO/RO), offers a militarily useful cargo capacity of 220,586 square feet, while the eleven-year-old TULANE, also an RO/RO vessel, provides 194,665 square feet of militarily useful cargo capacity. The TULANE is set to reflag under U.S. registry by the end of the year and will be renamed the ARC HONOR.

The final product tanker selected for TSP is the PYXIS EPSILON, under U.S. Marine Management, LLC in Norfolk, VA. This eight-year-old vessel, with a 325,000 barrel capacity, is scheduled to reflag under U.S. registry by the end of this year and will be renamed the SHENANDOAH TRADER.

Maritime Administrator Ann Phillips highlighted the significance of MSP and TSP, emphasizing their dual role in growing the U.S.-flagged commercial fleet, benefiting the U.S. economy, and sustaining the ability to deliver vital supplies for global military missions. MSP, established in 1996, has been a cornerstone of the U.S. maritime industry for over 27 years, while the recently created TSP supports a fleet of ten commercial product tankers operating internationally, capable of loading, transporting, and storing bulk petroleum refined products to support national economic security and DoD contingency requirements.

“These vessels play a pivotal role in enhancing global readiness and safeguarding our nation’s supply chains. Both MSP and TSP underscore our steadfast commitment to national security and economic stability, exemplifying the indispensable partnership between MARAD and USTRANSCOM,” noted Commander of U.S. Transportation Command, Gen. Jacqueline Van Ovost. Both programs address the shortage of both U.S.-flag ships and U.S. Coast Guard-credentialed Mariners with unlimited licenses, further strengthening national defense and economic resilience.

Archives, Global Logistics, Global Trade Daily, News

USDOT Announces more than $12 Million in Funding for the U.S. Marine Highway Program

March 6th, 2023 Tim Jay Leave a comment

The U.S. Department of Transportation’s Maritime Administration (MARAD) today announced a Notice of Funding Opportunity making $12,423,000 available in Fiscal Year 2023 funds through the United States Marine Highway Program (USMHP), previously named America’s Marine Highway Program.

The USMHP seeks to increase the use of America’s navigable waterways, especially where water-based transport is the most efficient, effective, and sustainable option. The USMHP helps to create maritime jobs, strengthen the nation’s supply chains, reduce emissions, and lower maintenance costs.

The Department will evaluate projects using criteria including the effect on movement of goods, level of non-federal funding investment, use of domestic preference, consideration of equity, and environmental justice. The Department will also consider geographic diversity when selecting grant recipients, as well as how the project addresses challenges faced by rural areas.

Applications must be submitted through Grants.gov by 11:59 p.m. EST on April 28, 2023.

For technical assistance, MARAD will host a series of webinars during the USMHP grant application process. For webinar registration details or for additional information regarding the USMHP click here or contact the USMHP staff via email at mh@dot.gov, or by phone at 202–366–1123.

Archives, Global Trade Daily, Technology

Nuvera Expands Maritime Industry Engagement

January 23rd, 2023 Tim Jay Leave a comment

Nuvera Fuel Cells, LLC announces the sale of two Nuvera® E-60 Fuel Cell Engines to Nexus Energy, a sustainable innovation company based in the Netherlands that is developing modular zero emission solutions for maritime and on-shore applications. Nexus Energy will use the 60 kW hydrogen fuel cell engines in the development of a common modular powerpack for maritime and on-shore use, for both stationary and heavy-duty applications.

Nuvera fuel cell engines help maritime vessel and equipment manufacturers to comply with tightening emissions regulations and mandates and remain economically competitive by providing high-performance zero-emission power solutions fueled by clean hydrogen. The International Maritime Organization is targeting a 50% cut in greenhouse gas emissions by 2050. Many governments and maritime industry players believe 100% is the appropriate goal.

ABOUT NUVERA FUEL CELLS, LLC

Nuvera Fuel Cells, LLC is a manufacturer of heavy-duty, zero-emission engines for mobility applications. With teams located in the U.S., Europe, and Asia, Nuvera provides clean, safe, and efficient products designed to meet the rigorous needs of industrial vehicles and other transportation markets.

Nuvera is a subsidiary of Hyster-Yale Group, Inc., which designs, engineers, manufactures, sells, and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster® and Yale® brand names. Hyster-Yale Group is a wholly owned subsidiary of Hyster-Yale Materials Handling, Inc. (NYSE:HY). Hyster-Yale Materials Handling, Inc. and its subsidiaries, headquartered in Cleveland, Ohio, employ approximately 8,100 people worldwide.

Archives, Global Logistics, Global Trade Daily, Ocean Ports

What is a Smart Port?

January 3rd, 2023 Port Technology International Team Leave a comment

A Smart Port is a port that uses automation and innovative technologies including Artificial Intelligence (AI), Big Data, Internet of Things (IoT) and Blockchain to improve its performance.

Although the industry of ports and container shipping is often regarded as conservative and resistant to change, there are new technologies, systems and solutions emerging that will alter this perception in the coming years, leading the entire sector to a brighter, more connected future.

The need to evolve and become “smart” is even more paramount today with the changing demands of global trade: ships are getting bigger; goods are moving faster; and geopolitical issues are creating new challenges for ports all around the world.

In Edition 106 of the PTI Journal we examined some of the the most important digital trends and developments across the industry.

The industry has already embraced many emerging technologies such as Digital Twins, cargo flow optimization and visualization – giving customers end-to-end transparency of their cargo’s journey through the supply – and the emergence of 5G’s low latency and faster connectivity to improve port operations.

Digitalization

The digitalization of industrial processes is turning the way we produce goods and services upside-down as we look for higher efficiencies and better management of resources. This transformation is the so called Industry 4.0, and the Internet of Things (IoT) can be considered its cornerstone due to the clear need to capture information from all industrial assets.

Digital Twin technologies in use at the Port of Antwerp

The maritime sector is not an exception in this transformation and the change is starting to accelerate.

The Port of Esbjerg, for example, is leveraging a Digital Twin data visualization platform to identify, monitor, and analyse the emissions outputs of not just its own carbon consumption, but eventually all actors using the port’s facility. The digitalization and measuring of the port’s assets has allowed the port to make significant strides in reducing its carbon output within the port community.

But digitalization is still a largely untapped resource in ports: reports found in February 2021 that of the 4,900 ports around the world, a staggering 80% continue to rely on legacy and paper-based processes to manage maritime services.

Smart Digital Ports of the Future Conference

Smart Digital Ports of the Future Conference is the only annual international event on the market that brings together the largest number of global ports, terminals, and the entire supply chain to debate, share best practices, latest developments and to successfully propel the industry forward with digitalization.

Click here for all of the news, insight, and analysis from #SDP

Ports aiming to become smarter must complement their physical operations with digital processes, according to the Port of Rotterdam.

What is a Smart Port? – Joyce Bliek, Port of Rotterdam

In 2019 the Port of Rotterdam’s Director of Digital Business Solutions Joyce Bliek outlined what it means to be a digital port.

As technology develops, and the global supply chain becomes increasingly digital, there is a necessity for ports to become a “digital node” within that infrastructure.

In this respect, Bliek echoes the thoughts of Kalmar’s Director of Terminal Automation Jari Hämäläinen, who argues that the “exponential growth” of digital technology is placing pressure on the port sector to adapt. Those which fail to do so could be left behind.

The benefits of adopting a dual-approach that encompasses both the physical and the digital, as Bliek explains, are considerable, especially for the testing and optimization of physical infrastructure.

Building a quay wall for instance, without the support of digital twin technology and predictive analysis, could be very costly, whereas testing the structure’s functionality before it is constructed offers a much clearer insight as to what impact a major investment like this could have.

Money saved through digitalization can be used elsewhere to fund key maintenance and infrastructure projects, allowing the port to hone its focus on improving the efficiency of its operations.

Archives, Global Logistics, Global Trade Daily, Ocean Carriers

HOW TO PREPARE FOR THIS YEAR’S CHALLENGES AND OPPORTUNITIES

February 22nd, 2022 Mike Short, president of global forwarding, C.H. Robinson Leave a comment

Twenty twenty-one was a difficult year in global logistics due to ongoing volatility. We worked alongside customers navigating the Suez Canal block, hurricanes and cyclones, port and terminal closures due to COVID-19 outbreaks, customs and trade changes, labor shortages and more.

I’ve been in the industry since 1997 and I have never seen this level of continual disruption across the entire supply chain for this length of time. However, with this year’s volatility, I was also given a front-row seat to a new level of hyper collaboration–including individuals going out of their way to help each other, more strategy sessions between shippers and forwarders, and continually leaning into historical data and current market insights find smarter solutions.

As we begin another potentially volatile year, I wanted to provide key strategies for global shippers to consider.

SEEK CREATIVE SOLUTIONS ACROSS THE ENTIRE SUPPLY CHAIN

At year-end, we typically see a jump in demand as shippers meet quarter-end quotas and prepare for the upcoming Lunar New Year, during which many factories in China shut down. However, in early 2022, shippers are also juggling potential delays from the Winter Olympics in Beijing throughout February. All of this is amid a strained supply chain market, which will take time to ease.

As you prepare for the year ahead, consider what different modes, trade lanes or inland transportation strategies you can implement in your supply chain. For example, while it may not be feasible to transport 100% of your freight via air, air freight continues to be the fastest way to replenish inventory, so prioritizing specific freight can help keep cargo moving. In fact, C.H. Robinson is running on average 15-17 air charters a week globally for customers looking to avoid the congested ocean ports, and we don’t expect that number to decrease in the near future.

Additionally, as demand and rates will likely continue to stay elevated, less-than-container load (LCL) shipping is a strategy to consider. Typically, space for LCL shipments is easier to find especially in a constrained capacity market, since you are only looking for some container space versus an entire empty container. We also continue to see large cost savings with expedited LCL services compared to today’s airfreight environment.

Keep in mind, LCL shipments are not going to bypass congestion at the ports, so inland strategies need to be considered. Currently, many ocean carriers are looking to move more interior point intermodal cargo versus focusing on port-to-port. We were able to help increase the flow of cargo inland for our customers by sending more 53-foot containers so cargo on the smaller 40-foot ocean containers can be efficiently consolidated in the larger ones and loaded onto trucks or trains to be taken to inland destinations more quickly. Overall, this increased our container capacity by 25% in Southern California.

Indeed, looking at only one portion of the supply chain or one mode can only get you so far. It’s important to consider all areas to keep your cargo moving.

UTILIZE DATA AND TECHNOLOGY

Although 2021 rendered a lot of unique situations—and 2022 may do the same—historical data can still help us find solutions. Finding common trends and themes in your cyclical data can give you an information advantage to make smarter decisions for your supply chain.

Additionally, the right technology tools can give you the visibility and predictability you need to adjust. For example, with the ongoing port congestion and delays, C.H. Robinson enhanced the vessel routing and tracking features within our transportation management system, Navisphere, to increase the efficiency and accuracy of port ETAs and automatically send updates if changes were discovered. This is important because ocean shipping is only one piece of the equation. Having visibility to changes in real-time gives our team and customers a chance to react and adjust other tactics down the road.

LOOK TO GLOBAL TRADE OPPORTUNITIES

It’s unclear whether we’ll see a reinstatement of certain Section 301 China duty exclusions. At press time, the House and Senate had yet to reach consensus on the legislative proposals. If passed, it would be effective through the end of this year.

While congestion and shortages continue across transportation modes, one area where you may find opportunities for savings is in your global trade strategy. Since each country’s trade policies are unique and can change, it’s important to have regular meetings with your trade advisor to break through the complexity of your total landed costs, including understanding your costs to import, identifying duty recovery possibilities and reducing your duty exposure via trade agreements.

For example, our team has helped shippers identify thousands to millions of dollars in tariff refunds alone. If you import into the U.S., you can easily check for potential savings and refunds with our online Tariff Search Tool—www.chrobinson.com/en-us/resources/insights-and-advisories/trade-tariff-insights/hts-search/—and, if you’re sourcing from other countries, our team can create a customized sourcing report sharing potential cost savings or avoidance opportunities.

OCEAN FREIGHT UPDATE: GLOBAL

Forecasting remains essential. For this new year, we strongly encourage forecasting six to eight weeks minimum as a best practice. Considerations for staying consistent include:

-Prioritization

-Variability in SKUs/parts

-Smoothing volumes week-to-week

It’s important to be flexible in all facets of a shipment life cycle including:

-Carriers

-Equipment

-Modes

-Routing

OCEAN FREIGHT UPDATE: NORTH AMERICA

-Port congestion continues to strand vessels and equipment. In Los Angeles/Long Beach (LALB) there are more than 90 vessels with an average 18-30-day dwell. Seattle and Tacoma are experiencing an average of 12 days to berth, while Savannah still has more than 20 vessels waiting at anchor.

-South East Asia transshipment hub ports are also impacted, causing heavy delays on non-direct services via Asia.

-Overall capacity is affected by ongoing port congestion in many trade lanes. Vessels are oftentimes delayed back to their origin, missing scheduled port calls to unload empty equipment, and pick up new laden exports to the United States.

-Schedule reliability and operational constraints are forecasted to continue.

OCEAN FREIGHT UPDATE: OCEANIA

-The supply chain in Oceania continues to be negatively impacted by the global supply chain disruption. Terminal congestion and suspension of pro forma berthing windows are having an impact on shipping schedules.

-Our teams are exploring diverse options in moving longstanding containers to help customers mitigate significant delays.

-The impact of port delays around the world is likely to keep freight costs high on all outbound trades.

FINAL THOUGHTS

While there is no one-size-fits-all approach, the above options provide shippers with strategies to help mitigate delays and identify potential savings as we begin another potentially unpredictable year.

Shippers have had to become increasingly nimble and informed over the past year, and now in 2022, it’s critical to remain agile, be open to alternative solutions and stay informed on the latest market insights.

________________________________________________________________

Mike Short is president of global forwarding at C.H. Robinson. The Eden Prairie, Minnesota-based company solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With nearly $20 billion in freight under management and 18 million shipments annually, C.H. Robinson is one of the world’s largest logistics platforms. Their global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, they parlay an information advantage to deliver smarter solutions for more than 119,000 customers and 78,000 contract carriers. Learn more at www.chrobinson.com.

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