The global supply chain has faced disruptions, causing port congestion and trade uncertainty, while also creating opportunities. Asian ports, particularly in Japan and China, are grappling with significant delays as they prepare for the upcoming Lunar New Year while also dealing with the aftermath of unexpected weather conditions, even after Typhoon Kong-ray. Meanwhile, North American import demand remains strong, driven by resilient U.S. consumer activity, though challenges persist in the form of potential labor strikes and ongoing tariff concerns. With container prices surging and U.S. manufacturers stockpiling materials ahead of anticipated tariff changes, the freight and shipping landscape is experiencing both pressures and opportunities. As the industry braces for these disruptions, companies are being urged to lock in rates to navigate the complexities of Q4’s trade environment.
Learn more about these key industry updates:
Lunar cargo rush, poor weather clog major Asia ports (Journal of Commerce)
Due to preparations for the upcoming Lunar New Year and unexpected weather conditions, Asian ports have been facing significant congestion. Ports in Japan, including those handling intra-Asia and east-west services, have also been impacted. Berthing delays of up to five days have been reported, with several ports experiencing disruptions. The most impacted ports include Shanghai, Tokyo, Ningbo, Busan, and Manila, each dealing with delays specific to their respective container lines. This congestion follows the disruption caused by Typhoon Kong-ray, which impacted Shanghai and Ningbo. The Port of Tokyo, operating at “full capacity,” is managing these challenges as they arise.
Maersk expects strong demand and ‘another year of disruption’ for global trade in 2025 (CNBC)
North American import demand has remained robust and is expected to continue through 2025 for both ocean and air cargo, despite ongoing supply chain disruptions. Challenges include potential strikes at U.S. East Coast and Gulf ports and tariff threats during the Lunar New Year period. Fueled by resilient U.S. consumer demand, imports are projected to grow at 20%-24% cross Q1-Q3 of this year. Container prices have surged by 20%, driven by high e-commerce activity, particularly from China. As seen in October, another shift toward West Coast ports will be impacted as companies brace for disruptions, following the continued dispute of the ILA (International Longshoremen’s Association) and USMX (United States Maritime Alliance Ltd.) regarding automation before their January 15 deadline. While predicting demand remains complex, steady trade between the U.S., Asia, and Mexico is expected, underpinned by stable U.S. GDP growth of nearly 2%. Supply chain resilience will be crucial as disruptions continue to impact the market.
Truckload rates near a 2-year high: What truckers need to know (FreightWaves)
According to FreightWaves, the freight market is strengthening, benefiting truckers with higher pay as spot rates soar. The SONAR National Truckload Index (NTI) shows truckload rates have reached $2.53 per mile, marking a 15% increase since October, and the highest levels seen in almost two years. Rates are rising due to a 4% drop in trucking authorities, leading to less competition for loads. Potential economic boosts in 2025 could further amplify freight demand as well. Shippers are encouraged to lock in rates to offer more stable opportunities for carriers.
U.S. Manufacturers Are Stocking Up on Imports Ahead of Tariffs (WSJ)
U.S. manufacturers are stockpiling imported parts and raw materials in anticipation of new tariffs in the upcoming year. A survey of 27,000 global businesses revealed a significant surge in buying activity in November, the highest in over a year. This surge in demand is increasing purchases of essential materials such as emulsifiers, flavor enhancers, and fiber-optic components. Businesses are pulling forward China imports, with some doubling orders to cover several months in hopes that tariffs will be reduced or repealed as part of a trade deal. This has led to predictions of a surge in container imports, with experts noting that past tariff implementations caused similar spikes in the third quarters of 2018, and now 2024. The manufacturing components most likely to see increased orders include auto parts, electrical components, and fabricated metal products.
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