In Week 29, we see demand begin to fall from an early peak season while equipment shortages and severe weather impact vessels and some ports.
WEATHER BLOCKS VESSEL TRAFFIC AROUND CAPE OF GOOD HOPE
Severe weather near the Cape of Good Hope forced container vessels to seek shelter from the strong winds and high waves. One vessel lost 44 containers overboard when the vessel transited around the Cape of Good Hope on July 9, 2024. Estimates suggest that 600 container ships could be impacted by the extreme weather.
DEMAND FALLS FROM PEAK
Soaring demand in recent months has been primarily by volumes from the Far East, particularly China. Shippers have been working to proactively bring ship orders earlier to avoid a repeat of the shipping chaos that happened during the Pandemic.
EQUIPMENT SHORTAGES IMPACT USWC
Ports in the Pacific Northwest are experiencing severe railcar deficits. The Ports of Seattle and Tacoma are limiting terminal operations to a maximum of 3 gangs on vessels and 1 berth until further notice due to the lack of railcars to evacuate imports. Startup operations are also delays on vessels for the same reason.
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