NEWS & BLOG
Views: 3 Author: Site Editor Publish Time: 2022-12-16 Origin: Site
According to Descartes' November report on the global shipping crisis and logistics and supply chain professionals, U.S. container imports have fallen in November to near pre-pandemic November 2019 levels.
U.S. containerized imports in November 2022 fell 12.0% from October to 1,954,179 TEU. Compared to November 2021, TEU volumes are down 19.4% and only 2.8% higher than in November 2019 before the pandemic.
U.S. container imports from China continued their downward trend in November to 686,514 TEUs, down 11.1% from October. China accounted for 35.1% of total U.S. containerized imports, down 6.4% from a high of 41.5% in February 2022 .
Overall port delays in November 2022 are lower than in October 2022. Delays improved across all major Eastern and Gulf Coast ports, but delays remained high compared to major West Coast ports, with three of them (Savannah, Houston and New York/New Jersey) still experiencing delays reached double digits.
The port industry now faces the twin challenges of soaring costs and a sluggish market that will squeeze operating margins until 2023.
Operators of container terminals have seen rising fuel and electricity costs and are under increasing pressure from longshoremen to demand inflation-linked wage increases.
Drewry Line has downgraded its short-term outlook for the global container shipping market.
In the past year, port congestion has led to a strong increase in storage charges, providing port operators with a degree of profit protection against rising costs. But at the same time, the same congestion also increases operating costs, fuel and energy costs.
With port congestion expected to ease in early 2023, Drewry expects port unit revenues to decline, crimping terminal operators' margins.
As cargo volumes slow and in some cases fall, terminal operators will lose some of the economies of scale brought about by the post-pandemic demand boom. At the same time, operating costs are expected to rise sharply by 2023 as wages are higher than inflation.
Colleagues, as the outlook for freight demand deteriorates, there still needs to be a consensus on when shipping lines will return to fixed weekly sailing schedules, which will further erode revenue growth for terminal operators in the near term.
Given these headwinds, container terminal operators will face greater profit pressure amid falling freight volumes and rising costs.