2024 Fortune Telling

The horizon hasn’t been very clear as we’ve navigated through the first few weeks of 2024. From the continuing unrest overseas to the transportation difficulties faced in the Panama Canal and the Red Sea/Suez Canals, we’re facing some interesting challenges. Doing business through COVID forced all of us to reevaluate and change our behaviors. It is this mentality of adaptability and innovation that will help us move forward while the state of logistics is constantly evolving.

Capito Enterprises is here to help you navigate the currently unpredictable forecast of logistics and answer all questions regarding any of your logistics needs. If you want to know where your cargo is at any time, reach out to us and we will provide the most up-to-date status available. With so many elements out of anyone’s control in the shipping process, it doesn’t make sense to make guarantees. What does make sense is using our 50 years of experience, knowledge and connections to find the best answer and taking action to provide the best possible outcome for our clients.

We are not fortune tellers and do not have a crystal ball that will help us see into the future, but Capito Enterprises, Inc. is in tune with and on top of all factors that could possibly affect your shipments. Here are a few areas to be aware of as we move through 2024:

  1. Blank sailings and rerouting of vessels causing delays in departures and longer transit times.

    1. At the end of 2023, steamship lines opted to adjust their routing, limit container usage and assign more blank sailings to accommodate for lack of volume at the end of the year.

    2. With the attacks still prevalent in the Red Sea, many steamship lines such as MSC, Hapag Lloyd, and ONE Line, have changed routing sailing around Africa via the Cape of Good Hope.  This has caused longer transit times and an increase in charges.

  2. Current Port flows:  Below are the current movement trends from West and East coast ports.  However, with the influx of rerouting to the West coast, there may be an increase in terminal and rail congestion.

    1. West Coast:

      1. Los Angeles/Long Beach ports (inconsistent):

        1. 4-5 days to discharge once vessel arrives at port

        2. Loaded on rail to departure: 2-5 days

        3. Transit time to Chicago: 4-5 day transit

        4. 1-2 days to discharge at Chicago terminal

      2. Seattle/Tacoma ports continue to be a slow route for cargo with trains to Chicago/Midwest region only moving once a week (fairly consistent)

      3. Canada port (delays building)

        1. Berthing about 3 days once vessel arrives from port

        2. 1-2 days to discharge once vessel berths

        3. 3-5 days to depart on rail once discharged

        4. About 7 day transit time once departed from PR/Vancouver terminal on rail to Chicago/Midwest region

    2. East Coast:

      1. NY/NJ

        1. 5-6 days to move on rail from date of discharge

        2. 4-5 day transit to Chicago terminal from rail

      2. Norfolk

        1. 4-7 days to move on rail from date of discharge

        2. 3-4 day transit to Chicago

    3. Freight Rates

      1. Ocean: A GRI and PSS was implemented after 1/14 and rates make an aggressive increase.

      2. Air: Rates are also increasing as volume rises due to slower ocean transit times and importers opting for faster options via air to ensure orders are met.

      3. Freight Insurance: Is it needed in today’s climate? Does your blanket insurance cover enough? With the unrest overseas and higher transit risks, freight insurance is more of a necessity to help give you peace of mind as your cargo is in transit.  We now offer freight insurance through Breeze a digital freight insurance provider that allows us to offer freight insurance on a per shipment basis.

    4. Supply Chain Security: Know your supplier/Know your customer

      1. Imports: Forced Labor in China

      2. Exports: Sanctions on Russia

      3. How to validate foreign entities

        1. Initiatives being taken by U.S. CBP - new programs/requirements

          1. Zip codes mandatory for Manufacturer Identification (MID) when processing customs entries

          2. Global Identifier Initiative