Global Logistics Freight Market Update 丨 Week 38 丨 2023
Table of Contents
Port Turnaround Times
● Los Angeles
● Long Beach
● New York
The Port of Los Angeles in the United States imported approximately 90,096 containers this week from September 10 to September 16, a decrease of 6.96% compared with last week and a decrease of 9.17% compared with the same period last year.
In August 2023, the United States imported 971,305 TEUs from China, a decrease of 16.15% from 1,158,352 TEUs last year, and a decrease of 0.90% from the 980,121 TEUs in July. This also resulted in the fact that the absolute value of the year-on-year decline in August not only did not decrease but further increased. Last month, shipping was expected to have the earliest turning point of year-on-year growth from a decline to an increase in November this year.
U.S. Container Imports Year-on-Year Comparison
#1. UPS decided to offer warehouse change delivery and cross-warehouse delivery
Recently, there has been significant attention on the issue of UPS deliveries to Amazon warehouses involving warehouse change deliveries and cross-warehouse deliveries. Starting from August 1, 2023, due to adjustments in Amazon warehouse capacity acceptance, deliveries will be randomly assigned to different warehouses. It’s important to note that having a delivery address that differs from the address on the UPS label will be considered standard service. Currently, this adjustment affects a total of 247 warehouses.
DIDADI Logistics offers the following solutions and recommendations for warehouses and customers affected by these issues:
Cross-Warehouse Shelf Application: For customers who encounter cross-warehouse deliveries, we recommend promptly contacting Amazon to request cross-warehouse shelf placement. Amazon will assist in resolving this issue based on the actual circumstances to ensure timely delivery of goods.
Warehouse Management Optimization: Enhance warehouse storage capacity by optimizing internal processes, improving the efficiency of storage and sorting, and reducing the risk of overstocking.
Priority Consideration for Transshipment Delivery: For warehouses affected by recent shipments, it is advisable for customers to prioritize transshipment delivery as a delivery method.
Timely Submission of Backend Information for Investigation: If your goods remain unshelved for more than 15 days, please provide backend information promptly and request Amazon to conduct an investigation.
#2. ITS Long Beach to remain open amid search for new carriers
Last Thursday, the American Journal of Commerce (JOC) reported that the ITS Terminal in Long Beach was set to close. However, they later issued a correction stating that the terminal would continue its operations while actively seeking new shipping companies.
In reality, the prolonged labor negotiations in the U.S. West Coast since last summer have caused a portion of cargo to divert to the U.S. East Coast and the Gulf Coast ports. Additionally, the “de-stocking” trend in the U.S. retail industry has led to a significant decrease in import volumes, dealing a double blow to the U.S. West Coast ports. The proportion of total U.S. imports handled by these ports dropped from 63% in July 2019 to 53% in July 2023, representing a 10% decline. This decline translates to over two million TEUs of cargo shifting to the U.S. East Coast and the Gulf Coast.
#1. Blank Sailings on the Decline as 2023 Golden Week Nears
Due to reduced sailings from China, Europe, and the United States, container terminals, as well as feeder and barge operators in Northern Europe, are poised to face a very challenging period.
According to the latest data from Drewry, out of 665 scheduled sailings on major routes like Trans-Pacific, Trans-Atlantic, and Asia-Northern Europe and the Mediterranean, 45 voyages have been announced as canceled during weeks 36 to 40.
Looking specifically at the upcoming five weeks (weeks 36 to 40) of voyage cancellations, the Ocean Alliance has canceled 19 sailings, while THE Alliance has announced 12 cancellations.
#2. Amazon Conducts Another Round of Account Suspensions
In recent days, Amazon has initiated another wave of account suspensions, resulting in the mass closure of seller accounts. This time, the account suspensions are primarily related to brand authorization issues, causing some sellers to lose more than 30 accounts while others have had individual or multiple stores affected, leading to significant losses.
According to feedback from several sellers, the common scenario involves both old and new accounts using the same brand, with brand registration information associated with the old account but authorized for use by the new account. Due to some violations or breaches on the new account, it gets suspended, subsequently triggering consequences for the old account. The time intervals between the suspension of the two accounts, whether long or short, often span over a year, and the old account has no record of any violations during this period.
#3. TikTok Launches Comprehensive E-commerce Services in the United States
On September 12th, TikTok officially announced the launch of TikTok Shop, a comprehensive e-commerce service, in the United States. TikTok’s e-commerce platform offers users video and live shopping experiences, allowing them to purchase products directly from videos and live streams featured in their For You feed.
For businesses and creators, TikTok’s e-commerce platform introduces a range of services, including product showcase pages, a marketplace, and an “Alliance Program” that connects merchants with content creators. Additionally, TikTok’s e-commerce platform has rolled out the “Fulfilled by TikTok” program, assisting businesses in storing, selecting, packaging, and delivering products, as well as a secure payment system developed in collaboration with third-party partners.
Currently, 40% of TikTok’s U.S. users have access to the “Shop” section on their homepage. TikTok plans to expand its testing phase, with the expectation that by early October, all U.S. users will have the “Shop” feature on their homepage.
#4. Shopee Releases Report on 9.9 Super Shopping Festival
Shopee’s first major promotion event of the second half of the year, the 9.9 Super Shopping Festival, has successfully concluded. On the day of the mega sale, Shopee’s cross-border livestreaming shopping saw a significant surge, with order volumes increasing by 20 times compared to regular days. New sellers injected fresh energy into cross-border sales, resulting in order volumes spiking to 9 times the usual numbers. Chinese brands gained significant popularity, with cross-border Shopee Mall order volumes increasing to 6 times the normal levels.
During the promotion period, Shopee created online interactive entertainment with the Shopee Prizes game, accumulating over 5.6 billion participant interactions. Consumers engaged in shopping while watching Shopee Live broadcasts, accumulating a total viewing count of 4.8 billion.
#5. China Holds 19.4% Share of Mexico’s Car Imports in the First 8 Months of the Year
According to the Mexican Association of Automotive Dealers (AMDA), cars from China accounted for 19.4% of Mexico’s car imports in the past 8 months, a significant increase from 5.7% in 2018. Increasing inventory and faster delivery times have helped Mexico meet its growing demand, intensifying competition among automotive brands in the Mexican market.
The strong export, production, and sales figures reflect the post-pandemic recovery, although growth rates for the next year may decrease due to the market’s resurgence. The Mexican Association of the Automotive Industry (AMIA) emphasizes the importance of incentives for electric vehicles in the country.
#6. “China-Australia trade grew by 5.4% YoY from January 2023 to July 2023
On September 7th, the spokesperson for the Ministry of Commerce stated that in November of the previous year, the leaders of China and Australia held a meeting in Bali, providing direction for the development of bilateral relations. The Ministry of Commerce welcomes enhanced communication and dialogue between China and Australia across various sectors.
They also noted that this year, China and Australia have maintained close ties in the economic and trade fields, conducting mutually beneficial economic and trade cooperation that aligns with the interests of both sides. According to Chinese statistics, China-Australia trade reached $134.5 billion in the first seven months of this year, representing a year-on-year growth of 5.4%.