Recent developments have significantly influenced container
shipping rates and port congestion from China to both the U.S. West
Coast (US WC) and East Coast (US EC).
The threat of an East Coast port strike, with labor negotiations
between the International Longshoremen's Association (ILA) and
the U.S. Maritime Alliance (USMX) due by January 15, 2025, has led
to a diversion of cargo to West Coast ports. This, combined with
the anticipation of new tariffs from the incoming Trump
administration, has caused a surge in shipping demand, pushing up
rates and port congestion. The Chinese New Year on February 10,
2025, further escalates this as shippers rush to move goods before
the holiday-induced slowdown.
US WC spot rates have increased by 201% from last year, now at
around USD $4,275 per forty-foot equivalent unit (FEU) from USD
$1,426 in 2023. The diversion of cargo has led to longer vessel
waiting times at ports like Los Angeles and Long Beach, with
average dwell times rising due to the increased volume. US EC spot
rates have also seen a significant jump, up by about 124% to USD
$5,440 per FEU from USD $2,434. Ports like New York/New Jersey,
Savannah, and Charleston have seen increased congestion, with
vessels often waiting days to berth, causing delays in cargo
movement, and increasing the cost of goods due to demurrage and
detention fees.
As you move into 2025, continue to plan, keep your strategies
flexible, and supply chains resilient.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
