The end of the year quickly approaches, and Chinese New Year is fast on its heels. Now is the time to plan your end of year and pre-CNY shipping. Plan for delays is the name of the game this month. Here’s what you can expect in November 2024.
China/HK Ports
Asia ports are working tirelessly to get shipments of goods on the water. It’s busy and vessels are overbooked. Demand for space surged in October as Golden Week wrapped up in China. A General Rate Increase (GRI) was implemented on November 1, increasing container rates. The next rate update is due on November 14. GPI has experienced several rolling schedules due to limited space on vessels. We expect to see more of the same in the next month and into the new year as the threat of more tariffs on imports from China is expected to roll out sometime next year.
US West Coast Ports
Both import and export volumes are high on the west coast which is to be expected this time of year. It’s busier than usual due to the vessels which rerouted from the east coast earlier in October as a result the ILA strike. As the equipment upgrades continue at LAX, LGB and Oakland some berths or piers will be unavailable at times from now until at least the end of November. That being said, we’re still seeing steady movement at the ocean ports as west coast port workers are used to these kinds of volumes in Q4.
US East Coast Ports
The US East Coast is experiencing minor delays at some ports due to the backlog from ILA strikes in early October, but vessels are getting processed within a few days of arrival. The typical transit time to US East Coast port to port is about 35 to 40 days. We’re experiencing slightly longer transit times lately as the dry season and little rain continue to plague the Panama canal. Expect 45 to 50 days for the South China to US east coast transit.
US Rails
Whether you are importing or exporting, if you’re using the west coast trains (US or Canadian), expect delays. The west coast rails are finding it difficult to keep up with the volume of goods moving across the county. Delays of 8 days to 2 weeks are expected at the west coast rails so plan accordingly. Your goods may be stationary for some time while waiting for that cross-country ride.
East/Gulf coast rails are faring just slightly better than the west. As they still work backlog from the strike and cleanup from seasonal storms, you can expect 3 to 8 day delays at the rail , depending on which port you are using. Charleston is currently seeing the longest of the east /gulf coast delays as they are also dealing with port construction.
Tariffs and Customs
We are expecting additional tariffs to be implemented in the coming year for products importing from China. Please take a look at the Section 301 tariffs, https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions, which add additional cost to some imports from China. Even if your HTS code is duty free, if it’s on the Section 301 tariff list, you likely have additional duties to pay when getting your goods into the US. Don’t get caught off-guard with additional fees you weren’t expecting! Check the Section 301 tariff lists today!
On November 13, 2024 tougher restrictions will go into effect concerning the descriptions of goods on your commercial invoices. Be precise and descriptive. If you have a vague or unclear description on your commercial invoice, customs border patrol could be delaying or rejecting your shipment! This includes small package shipments as well.
Oh, Canada
Trouble is brewing at the west coast Canadian ports of Prince Rupert and Vancouver as the threat of strikes forced the BC Maritime Employers Association ( BCMEA) to lock out employees of ILWU Local 514 on Monday Nov. 4 to prevent escalation. This will likely slow or stop any supply line movement at those ports and force the federal government to step in and assist.
That’s what’s going on this month in the ever-changing world of freight. Tune in next month for our final 2024 State of Freight! Have a spectacular November and best of luck in your Q4 sales!
