Karlibow Global Shipping News

March 1, 2024

The Red Sea disruption remains the biggest challenge and we see this continuing for some time. This week, shipping line Maersk stated the disruptions could last until the second half of the year. The good news is that the impact of this is not spreading or worsening like it did during the recent global shipping crisis. Costs have increased for some lanes, however, not to the levels of 2021. Transportation analysts feel the transportation sector is in a better position to handle disruptions.

The Panama Canal is still handling just under thirty percent less volume and we have started to use the US West Coast ports more when we can. This situation remains the same and the speculation is that the spring rains will help bring the water level back up.

Thankfully it is quiet with major port labor strikes and hopefully that continues for the next few months. There is a possibility of some in the back half of 2024 at the US East and Gulf Coast ports. Naturally, we will keep you posted.

We are also happy to report that The Federal Maritime Commission (FMC) has imposed new billing standards on ocean carriers and terminal operators to crack down on unreasonable container late fees. We often get demurrage and detention invoices long after we have returned the container. Many times we do not know what to expect for a cost or when we will get the invoice. This is an unpleasant surprise that would come months after the final delivery.

Starting in late May, terminal operators and shipping lines will have to bill forwarders like Karlibow, within 30 days. The mandate also has provisions for clear details as to what the charges are for. This is great news for us and our clients as it will reduce this often unexpected expense.

Beyond the above, capacity here in the US and for global shipping remains healthy. We are still covering extremely last-minute moves without issue.

Weather disruptions are consistent but typically short-lived.

As always, thank you for reading and if you have any news, comments, feedback, or questions, please reach out to us.