French ocean carrier CMA CGM has announced the implementation of a Peak Season Surcharge (PSS) effective from 25 December 2024, until further notice.

This surcharge applies to cargo originating from North China and destined for the West Africa North Range, which includes Liberia, Senegal, Mauritania, Gambia, Guinea, Sierra Leone, Guinea Bissau, Cape Verde, and Sao Tome and Principe.

The surcharge for this route has been set at US$400 per TEU for dry cargo.

Additionally, a separate Peak Season Surcharge has been introduced for cargo originating from Central and South China and destined for the same West Africa North Range region.

For this route, the surcharge is US$200 per TEU for dry cargo.

Port of Oakland’s total cargo volume shot up 10% year-to-date, January through November 2024, compared to the same period in 2023.

“We are optimistic that strong container volume will continue through the end of the year,” pointed out Port of Oakland Manager of Business Development and International Marketing Carolyn Almquist. “We expect to be on track to return to our pre-pandemic baseline cargo numbers. Our total inbound and outbound volume is up, and agricultural exports are boosting our outbound cargo business.”

Full imports increased by 13.1% in November, over the same month in 2023, reaching 80,580 TEUs. Additionally, full exports jumped 8.5% with 66,619 TEUs transiting the Californian port facilities in the previous month. At the same time, empty imports fell by 14.8% to 12,028 TEUs, while empty exports rose by 14.7% to 22,495 TEUs.

Container spot rates on the transpacific trades shot up this week, on the back of a series of mid-December general rate increases (GRIs) that appear to have significantly boosted prices.

Shippers on the transpacific eastbound route from Asia into the US west coast found themselves paying nearly an additional $1,000 per 40ft after Drewry’s World Container Index (WCIU) recorded a 26% week-on-week hike in the spot rate.

The WCI’s Shanghai-Los Angeles leg rose $913 per box, to finish the week at $4,499 per 40ft.

And shippers on the US east and Gulf coasts faced similar price increases, with the WCI’s Shanghai-New York leg rising 17% week on week, to finish at $6,074 per 40ft.

While the Shanghai-New York rate rose marginally last week, this week’s increase on the Shanghai-Los Angeles was the first upward movement for a number of weeks.

Meanwhile Xeneta’s XSI short-term index, which tracks both transpacific routes, recorded a 10% week-on-week rise, to $4,391 per 40ft.

“Drewry expects an increase in rates on the transpacific trade in the coming week, driven by front-loading ahead of the looming ILA port strike in January and anticipated tariff hikes under the incoming Trump administration,” the analyst said; and a series of January GRIs and other planned surcharges next month could see transpacific spot rates grow sharply again.

A number of transpacific carriers have filed 1 January GRIs with the FMC: Cosco, Evergreen, Hapag-Lloyd, HMM and Yang Ming all aiming for $3,000 per 40ft; CMA CGM and Zim are set to apply $2,000 per 40ft; and ONE eyeing $1,000.

Meanwhile, transatlantic shippers also saw spot rates on the rise, with the WCI’s headhaul Rotterdam-New York leg gaining 3% week on week, to finish at $2,713 per 40ft, some 83% up year on year. The transatlantic portion of the XSI saw a week-on-week rate increase of 3%, to $2,814 per 40ft.

Transatlantic spot rates could be set to rise further next month if other carriers follow the lead of MSC, which yesterday advised that it will hike an intended emergency operation surcharge (EOS) on 18 January from planned $1,000 per 40ft high cubed, to $2,500 on North Europe to US shipments.

MSC told customers: “In light of the significant changes in the transatlantic networks to restructure the services beginning of 2025, we foresee operational disruption during the first months of next year. For this reason, MSC announces the increase of the Emergency Operation Surcharge (EOS) as from 18 January until further notice.”

Of course, the scheduled implementation date is some three days after the ILA-USMX 15 January negotiations deadline, so there are still a large number of significant variables for transatlantic shippers to consider.

For Asia-Europe shippers, it was a relatively quiet week, with spot freight rates on the WCI’s Shanghai-Rotterdam slipping 1%, to $4,819 per 40ft, and reversing last week’s marginal GRI-induced increase.

The WCI’s Shanghai-Genoa leg also slipped 2%, to $5,424 per 40ft.

Traditionally, most shippers and forwarders would have by now concluded their annual rate negotiations with their carriers on the Asia-Europe trades. This year, however, both carriers and 3PLs expect the majority of shippers to now sign these deals in the first quarter of next year.

The East Java Multipurpose Terminal (EJMT), operated by International Container Terminal Services, Inc. (ICTSI) in Indonesia, celebrated a milestone by successfully handling its first container ship since beginning operations at the newly developed deep-water terminal in mid-October.

On Saturday 14 December, XinYi Glass made its inaugural call to Indonesia, selecting EJMT for its container discharge operations. The cargo is destined for XinYi Glass’s new manufacturing facility in Gresik, Indonesia.

EJMT boasts state-of-the-art equipment, including two Konecranes Gottwald ESP.8 mobile harbor cranes—the largest of their kind in East Java. For bulk cargo handling, the terminal utilizes four grabs with capacities of 30 and 12 cubic meters and two 60-cubic-meter automated anti-dust hoppers.

Its operational fleet also features two Kalmar reach stackers, an empty container handler, three automated Stinis spreaders, four Terberg tractors, and five Tantri trailers.

Strategically situated 60 kilometres northwest of Surabaya in Lamongan Regency, EJMT faces the Java Sea and lies outside the Surabaya Channel. As East Java’s newest gateway, EJMT is well-positioned to support hinterland customers across domestic and international markets.

“We would like to extend our gratitude to XinYi Glass and their management for entrusting EJMT to handle their first vessel call in Indonesia,” stated Patrick Chan, EJMT’s Chief Executive Officer.

Patrick Chan added, “Having handled our first container call, alongside multiple project vessels, we have demonstrated our capability as a fully multipurpose terminal that can accommodate all types of cargo. We are ready to support East Java.”

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The employers’ “only choice” is “how they want to lose” the stand-off with US east coast dockers; with suggestions this may provoke a longer strike than expected.

After suspending strike action in September, the ILA dockers’ union has struggled to win any concession from employer association USMX on the issue of port automation, but the US presidential election may have handed it a trump card.

S&P Global VP Peter Tirschwell told podcast The Freight Buyers Club that president-elect Donald Trump would “side with the union, 100%”.

He added: “Trump’s announced nominee for labour secretary,Lori Chavez-DeRemer, is a pro-union person; his political base is blue collar like dockworkers, and he has already been openly expressing support for the dockworkers’ position.”

Mr Trump’s support for the ILA makes sense, given that supporting the dockers plays into his ‘America First’ position if those workers look set to lose out to foreign firms.

And Mr Tirschwell cited the timing of a potential strike – set to commence five days before Mr Trump’s inauguration.

He said: “They go on strike then. They’re on strike for five days. Trump comes into office as the knight in shining armour who tells the ocean carriers ‘there’s going to be hell to pay, unless you agree to what the union is asking’, and he saves the day.”

Vespucci Maritime CEO Lars Jensen told the podcast he was largely in agreement, but had noted “another play” that was “important to keep in mind”.

“That is the end game, as I see it. That the carriers and USMX are going to lose this battle, I think, is more or less a foregone conclusion. The only question then is how do they want to lose it?”

“At the end of the day, they are going to have to lose it in a way that makes it the easiest to pass on these costs to the customers.”

Mr Jensen added that, far from any strike being short, it would be in the best interest of the employers to ensure not only that it went on “as long as possible,” but that it was “as painful as possible”.

Taking such an approach, he continued, would make it easier for them to tell shippers that either the base rate had increased, or that a new surcharge was being introduced.

“The more visible it is that they’ve been browbeaten by a combination of the administration and the ILA, the easier it’s going to be for them to then force through rate increases to compensate them” he said.

China Railway Signal & Communication has signed a memorandum of understanding (MoU) with state-owned Vietnam Railways Corp for railway development in the Southeast Asian country, the government said on Wednesday.

Vietnam has turned to China for funding and technology for its massive railway development projects, including three railway lines linking the capital Hanoi with China and a high-speed railway from Hanoi to the southern economic hub of Ho Chi Minh City.

The agreement between the two companies will pave the way for cooperation in railway planning, construction, training and operation, the government said in a statement.

Deputy Prime Minister Tran Hong Ha said on Tuesday that Vietnam wanted to speed up the construction of three new railways linking the two countries.

On 17 December, Vietnamese Deputy Prime Minister Tran Hong Ha met with Lou Qiliang, Chairman of China Railway Signal & Communication in Hanoi.

German container terminals are adopting Steelpaint’s innovative corrosion protection system, Stelcatec, to restore and maintain the paintwork on ZPMC ship-to-shore cranes, following the system’s certification by the Chinese manufacturer in 2023.

Stelcatec, the world’s first isocyanate-free, low-VOC polyurethane coating system, is being utilized to repair damaged coatings on ZPMC cranes at container terminals in Hamburg, Bremerhaven, and Wilhelmshaven.

Adamium, a German maintenance contractor, has already completed works on cranes at Wilhelmshaven and is set to begin similar restoration projects at terminals in Hamburg and Bremerhaven over the next two to three years.

Dmitry Gromilin, Chief Technical Supervisor at Steelpaint, commented: “When protective coatings on ship-to-shore cranes get damaged a two-component epoxy is typically used for spot repairs, but if you don’t get the mixing right, the paint will blister and be ineffective in protecting against corrosion. It’s a long process and curing takes time.”

Traditional two-component epoxy coatings often delay crane operations for weeks due to their long drying times, which are influenced by substrate and ambient temperatures. Adverse conditions can further extend the application timeline, making them less practical in colder or fluctuating climates.

“Taking a ship-to-shore crane out of commission costs the terminal money, delaying container loading/unloading operations. They wanted a ZPMC-approved one-component system that would obviate mixing errors, reduce material waste, speed up the drying process and reduce the time cranes are out of service,” mentioned Steelpaint Sales Director Frank Müller. “With Stelcatec-L, the coating can be applied and cured within a working day,” he added.

The decision to implement Stelcatec followed successful trials on equipment operated by one of Europe’s largest container terminal and logistics groups. These trials, combined with rigorous testing by ZPMC, led the original equipment manufacturer to certify Stelcatec for use on both existing cranes and new builds.

Achim Wallat, Adamium Project Manager, explained: “Terminal operators want an effective, reliable and safe corrosion protection system capable of reducing maintenance costs and downtime. Compared to two-component epoxies, Stelcatec-L is a very impressive, durable coating system that we now specify for all our crane refurbishment projects.”

Developed over four years of research and development, Stelcatec is a single-component, moisture-curing paint that eliminates the use of isocyanates. With very low solvent content, it can be applied by brush, roller, or spray in a wide range of conditions, including temperatures from -5°C to 50°C and relative humidity up to 98%.

Designed to protect steel in corrosivity category C5, Stelcatec meets ISO12944 standards, offering up to 25 years of protection. Its rapid drying times and high dry film thickness (DFT) of 80-120µm make it a highly efficient solution for crane maintenance.

“It is ideally suited for maintenance projects where time is of the essence,” noted Müller. “As Stelcatec can be applied 24/7, nighttime repairs are possible, reducing the time and costs associated with touch-up work. Terminal operators no longer have to take a crane out of service for weeks for coatings work.”

Steelpaint is now extending Stelcatec technology to the Asian market, where operators are conducting patch tests. The company anticipates receiving full coat application orders in the near future.

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US perishables exporters say they are struggling to secure enough temperature-controlled containers and trucks and face tight capacity and particularly strong demand for reefer boxes.

Recently logistics providers have reported a serious shortage of reefers at the port of Houston and less-pronounced availability problems at Philadelphia and Virginia.

This has been largely blamed on a double-digit surge in refrigerated imports from Asia, led by a 30% increase in seafood.

And this coincides with the start of produce exports from the southern hemisphere: carriers have reported strong volumes out of Argentina and Chile amid expectations of large crops.

Shippers there also face a shortfall of available reefer equipment. According to specialist Metro, South American exporters have struggled with a 73% shortage of reefer boxes.

Other markets are facing difficulties too. Vietnam-based logistics provider Seahorse Shipping notified customers that reefer capacity had become increasingly tight, pointing to an estimated 10% increase in global demand this year. And Europe has seen a 19% shortfall in reefer containers, Metro reported.

In DHL Global Forwarding’s update on the ocean reefer market in the fourth quarter, it warned shippers of equipment shortages in Oceania and India, and also signalled low availability in South America and South Africa. And Hong Kong-based forwarder Dimerco reported the supply shortage had also affected intra-Asian traffic lanes.

Longer transit times, owing to the extended routings out of Asia to avoid the Red Sea, have exacerbated the problem. According to DHL GF, this has removed 7% of global capacity.

In addition, worries about a second US east/Gulf coast port strike may have prompted US perishables importers to bring in supplies early to avoid disruption, further straining capacity. DHL told customers to consider conversion from ocean to air cargo, especially for critical lanes.

Shortages of reefer trucks have also been reported on US roads this month; they were in short supply in the states of Idaho and Washington, and previously there were occasional shortages in Florida and the Chicago area.

One factor behind this has been fewer trucking providers after small players left the market under the strain of the lasting freight recession that has depressed rates. Cancellations of carrier authorities have averaged about 7,000 a month this year, according to DAT Freight & Analytics.

US reefer shippers have also seen a rise in tender rejections from trucking providers. Since early October, these have averaged over 14%, up from 8% in October 2023. Predictions of a cold winter, which would increase the need for temperature-controlled transport, suggest that the coming weeks may be even tougher for shippers to navigate.

And it is doubtful if 2025 will bring much relief.

“Shippers must carefully plan and adjust their supply chains to mitigate delays and shortages, as reefer container availability remains strained well into 2025,” Metro warned.

According to DHL, reefer volumes are expected to grow at 2.2% CAGR through to 2028.