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NY-NJ swept of more empties
Ocean carriers are accelerating the removal of empty containers from the Port of NY-NJ. As a result, the ship backlogs and chassis shortages seen through much of 2022 have eased. Therefore, the port is more enabled to handle the growing freight volumes diverted from the West Coast.
The number of empty containers hit a peak in the summer. Since then, carriers have swept 30,000 empties from the port. Empties dwelling on and off the dock at the port have declined 15% from the estimated high of 200,000 in July.
The empty sweeps accelerated after the port released details of a $100 “container imbalance fee” in September. Roughly 9,218 empties were removed from the port during September, up from 5,000 in August.
Ocean carriers are stepping up empty sweeps ahead of the fee implementation. September saw the highest monthly totals for empties exported out of the port at 313,762 TEU.
The reduction in the number of empties lingering at NY-NJ has freed up space, equipment, and labor to unload vessels more quickly. The first week of November saw a weekly average of five ships at anchor, down from 10 ships at the end of October.
The Port of NY-NJ is handling more containers than ever. In October, total volumes were 792,548 TEU. This is the third consecutive month that the port topped the Port of LA in volumes.
Trans-Pac volume decline picks up pace in October
In October, US imports from Asia plunged to their lowest level in 20 months, with the rate decline accelerating rapidly from September. Asian imports in October totaled 1.44 million TEU, down 11% YoY. This is the lowest volume since February 2021.
In past years, October was the last month of the traditional trans-Pacific peak season. This year, retailers had shipped much of their holiday merchandise by early summer to ensure on-time delivery.
Retailers are forecasting a steep decline in US imports through at least Q1 2023. GPT forecasts that imports will decline each month from November through March compared with the same months last year.
From January to October, Asian imports remain higher than in 2021 due to a strong first half this year. Volumes increase 2.4% compared to the same 10-month period last year. Although YTD volumes are 21.2% higher than in the same period of 2019, October imports were up only 2% from October 2019. Therefore, demand may be returning to pre-pandemic levels.
Imports from Asia increased 6.3% YoY in H1 2022. However, second half 2022 volumes are forecasted to decrease 5.3% YoY. Additionally, volumes should continue to soften into 2023 as US consumers contend with inflation and high interest rates.
About O’Neill Logistics
O’Neill Logistics is a leading third party logistics provider. We operate in California, Savannah, New Jersey. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
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