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AAPL: NEW RECORD DHL: BOTTOM FISHINGF: DOWNSIDE RISKAMZN: ANOTHER HIGH WMT: ON A ROLLHON: INVENTORY UNLOCKBA: MORE OF THE SAMEGXO: HAMMEREDMAERSK: BOUNCING BACKDSV: FLIRTING WITH NEW HIGHS AMZN: NEW HIGH IN RECORD MARKETS WMT: RECORD IN RECORD MARKETSDSV: UPGRADEGM: BIG CHINA IMPAIRMENTCHRW: DEFENSIVEKO: GENERATIVE AI VISION
AAPL: NEW RECORD DHL: BOTTOM FISHINGF: DOWNSIDE RISKAMZN: ANOTHER HIGH WMT: ON A ROLLHON: INVENTORY UNLOCKBA: MORE OF THE SAMEGXO: HAMMEREDMAERSK: BOUNCING BACKDSV: FLIRTING WITH NEW HIGHS AMZN: NEW HIGH IN RECORD MARKETS WMT: RECORD IN RECORD MARKETSDSV: UPGRADEGM: BIG CHINA IMPAIRMENTCHRW: DEFENSIVEKO: GENERATIVE AI VISION
The lead time for Chinese exports to the US east coast is still just over two months – highlighting that time is running out for shippers to get boost import stocks before a potential strike.
The recent Flexport Ocean Timeliness Indicator (OTI) revealed that China-to-USEC cargo transport is at 61 days – a minor improvement from last week’s 62.
But, as CEO of Vespucci Maritime Lars Jensen noted, this week is the “last chance” for an average US import shipper to get product moved for arrival before a potential strike hits US east and Gulf coast ports.
The current master contract between the International Longshoremen’s Association (ILA) and US Maritime Alliance (USMX) expires on 30 September and renewed contract negotiations are yet to begin, due to a disagreement about port automation.
Mr Jensen urged: “Some shippers might have a shorter landside operation in China and/or use a more expedited shipping route, but even these are, in the near term, hitting the point where any additional cargo shipped on this route runs the risk of being impacted by labour disruptions.”
But one large US shipper told The Loadstar: “I’m not expecting the strike to start.
“The timing coinciding with the [US presidential] election probably means it should get resolved. I’d expect the ports to be pushed to compromise… It’s not my top concern, but on the radar.”
But the shipper did warn that if a compromise was not reached, “impacts on the US economy would be pretty significant, and quickly felt, only a month prior to the election”.
The OTI also showed that the China-to-US west coast lead time was some 40 days, while China-to-Europe had increased from 69 days to 69.5.
Flexport explained: “The reason? European port congestion is nearing pandemic highs, while previous delays caused by extreme weather around the Cape of Good Hope pose ongoing challenges.”
However, Mr Jensen said: “When you look at the development, the changes in the past week are in reality so minor, and could well just be part of the normal weekly volatility.
“In essence, all three trades have a very clear upward trend over the past three months, with USEC and North Europe up by around 10 days and USWC up by about a week.”
Flexport’s indicator measures the time from cargo readiness at the exporter in China to when a truck picks up the cargo and leaves the port yard.
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