Container shipping lines are shifting more of their all-water services from Asia to the U.S. East Coast to the Suez Canal route, instead of sailing through the Panama Canal.
Trans-Pacific Trade
The trans-Pacific ocean shipping market is by far North America’s largest trade lane, accounting for nearly 20 million 20-foot-equivalent container units in the U.S. trade alone in 2012.
The market is dominated by imports by large retailers such as Wal-Mart, Target, Best Buy, Home Depot and Lowe’s, which, unlike in other markets, tend to contract directly with ocean carriers rather than through forwarders, as is typically the case in the Asia-Europe market. As a result of the one-year contracts that retailers and other large shippers typically sign as of May 1 each year, freight rates in the trans-Pacific eastbound trade tend to be less volatile than in Asia-Europe.
Key developments in the trans-Pacific include the approaching 2015 expansion of the Panama Canal and its potentially huge impact on routing of Asia goods into North America, Canadian West Coast ports’ growing success in attracting U.S.-bound cargo, and West Coast ports’ expected response to these competitive challenges.
Exports moving to those markets typically are lower-value commodities such as wastepaper and scrap that keep China’s manufacturing and packaging industries humming.
Podcasts
Press Releases
Special Coverage
19 Jun 2013
The P3 Network announced between Maersk Line, Mediterranean Shipping Co. and CMA CGM will bring together portions of the three largest global container ship fleets. The alliance, which is planned for the second quarter of 2014, will enable the three carriers to deploy their largest vessels in the Asia-Europe trade and cascade slightly smaller ships into the trans-Pacific and the trans-Atlantic lanes. This infographic gives a look at how the partners' fleets - both individually and as contributed to the alliance - measure up against the global fleet.
19 Jun 2013
Drewry’s Hong Kong-Los Angeles Container Rate Benchmark remained at $1,957 for a third week in the week of June 19, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. This comes less than two weeks ahead of the July 1 general rate increase.
18 Jun 2013
Yusen Logistics is adding a weekly service from Ho Chi Minh, Vietnam, to Los Angeles to its LCL network.
18 Jun 2013
The P3 Network announced today between Maersk Line, Mediterranean Shipping Co. and CMA CGM will have little or no impact on the glut of vessel capacity that has been depressing global freight rates, but will enable the world’s three largest container lines to substantially cut their operating costs on the Asia-Europe, trans-Pacific and trans-Atlantic trades.
18 Jun 2013
CMA CGM, Maersk Line and Mediterranean Shipping Co. have agreed to establish a long-term operational alliance on East–West trades.
More Commentary
Video
Steven Cernak, chief executive and port director of Port Everglades, and James Hertwig, president of Florida East Coast Railway, discuss their organizations’ recent performance, their partnership in a new intermodal container transfer facility, and the opportunities they see and projects they are pursuing for further growth.
Linda Styrk, Port of Seattle managing director, discusses Harbor Maintenance Tax reform, the competitive environment for U.S. West Coast ports, and environmental initiatives at the port.
CargoSmart’s Director of Sales and Services Graham Collins explains the importance of visibility and early alerts of disruptions to shippers. He discusses the TPM sponsor’s newest efforts to modernize cargo tracking efforts and provide information earlier than previously available.
More on JOC
Jun 5, 2013 2:00PM EDT
Commentary
Ocean Carriers’ Internal Battle