Maersk North America Market Update - May 2024
Ocean and Key Ports Update
As shared in our 6 May advisory, the complexity of the situation in Red Sea and the ripple effects on global supply chains have intensified in recent months causing industry-wide disruptions. We now expect that these disruptions will continue into the third quarter of 2024.
Despite hopes that the situation would improve, we continue to face additional challenges and costs. These include, but are not limited to, the costs of the longer journeys and increased sailing speed to make up for delays. This has led to additional fuel costs and high charter rates, while operational bottlenecks have absorbed and reduced available capacity. We are doing what we can to add further capacity to our routes, in line with our customers’ needs. So far, we have leased more than 125,000 additional containers and have increased our sailing speed, as well as organized our fleet to enhance capacity where possible.
Consequently, some surcharges will increase temporarily. You will see relevant surcharges on your latest invoices, some higher than last month. Please know that we will continue to review the surcharges regularly and keep you updated on changes. You can also find the latest information on our dedicated Stay Ahead page on Maersk.com.
If you have any further questions, please contact your local Maersk representative. They are standing by to help you plan your future supply chain moves and can offer more information on the options available to you. Thank you for your understanding during this challenging time.
Additional Highlights:
India, Middle East & Africa
Our India/Middle East trade saw slower volumes at the start of May but saw a strong recovery in the latter half of May. Efforts to enhance schedule reliability are currently in progress; schedules are expected to stabilize soon.
In our South Africa trade, the citrus reefer season is strong, even amid operational issues at the ports. Both West and East Africa trades are experiencing growth as well.
Baltimore
Following the successful refloat and removal of the DALI, the Baltimore Captain of the Port has opened the Fort McHenry Limited Access Channel to commercial vessel traffic. This channel now has a depth of 50 feet, allowing us to accept bookings on our services. Please note the situation in the Port of Baltimore remains fluid and booking is contingent on space availability. For booking acceptance for direct loading and discharge on the upcoming voyages please visit our latest advisory Update on Baltimore.
Air Freight Update
In the global air cargo market, data released by the International Air Transport Association (IATA) showed significant growth in demand, particularly into the second quarter. Overall demand, measured in cargo tonne-kilometers (CTKs*), saw an 11.1% increase compared to April 2023, marking the fifth straight month of double-digit year-on-year growth. North American carriers experienced a 7.0% year-on-year growth in air cargo demand for April: the Asia-North America trade lane grew by 7.3% year-on-year, while the North America-Europe route saw an increase of 5.6%. North American carries continues to demonstrate steady performance in the air cargo market amidst ongoing ocean uncertainties.
As we approach the traditional low summer season, our teams are utilizing this time to prepare for the months ahead. In consultation with our current customers, Maersk has decided to temporarily pause its service on the Greenville (GSP) – Shenyang (SHE) – Incheon (ICN) route, which we confirm will have very limited impact to our customers during the summer season.
This decision will allow capacity to be reallocated to support the launch of a regular scheduled service from Chicago (RFD) to Zhengzhou (CGO), that will operate three times a week. Additionally, Maersk will continue its operations in Greenville (GSP) that connect to Hahn (HHN), four times a week.
As mentioned in our April Market Update, Maersk has also expanded its air freight operations footprint with the activation of a full-service, in-transit gateway solution in Miami. Maersk’s air freight cargo coverage extends to 70,000 airport pairings across more than 90 countries around the world. For more information on our air freight solutions and services to and from North America, please contact our team.
Topics, Trends, and Insights
Maersk recognized as a ‘Leader’ in the Gartner Magic Quadrant
For the third consecutive year, A.P. Moller – Maersk has been recognized as a Leader in the 2024 Gartner Magic Quadrant™ for Third-Party Logistics (3PL) report. According to Gartner, Leaders execute well against their current vision and are well positioned for tomorrow.
The Magic Quadrant for Third-Party Logistics, as explained by Gartner, “evaluates global third-party logistics providers. Supply chain leaders responsible for logistics can use this research to assess these 3PLs when considering outsourcing elements of their logistics operations."
We are proud to have AP Moller-Maersk named as a Leader in the Gartner Magic Quadrant for Third-Party Logistics, Worldwide report for a third year in a row. As a trusted supply chain partner, we are working hard to offer our customers quality, sustainable, and innovative transportation products and logistics solutions that connect, protect, and simplify their supply chains. In this world of frequent disruption and complexity, we believe the outcome of the 2024 Magic Quadrant shows how we are constantly evolving our offering to every logistical need. We remain committed to supporting our customers all the way.
To find out more on why we believe Maersk was recognized as a leader and what the future holds click here.
Gartner, Magic Quadrant for Third-Party Logistics, By Matthew Beckett et al, 30 April 2024.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in our market research reports, and does not advise technology users to select only those vendors with the highest ratings or other distinctions. Gartner reports state opinions of the Gartner Research & Advisory organization that should not be construed as findings of fact. Gartner disclaims all warranties, express or implied, with respect to this research report, including, but not limited to, implied warranties of merchantability or fitness for a particular purpose.
Performance team – A Maersk company and Prologis launch new EV truck charging depot, powered by nation’s largest EV truck microgrid
Prologis, Inc. and Performance Team – A Maersk Company have unveiled Southern California’s largest heavy-duty electric vehicle (EV) charging depot near the Ports of Los Angeles and Long Beach, powered by the nation’s largest EV truck microgrid. The Denker charging depot, which has the capacity to charge 96 EV trucks simultaneously, was constructed in just five months by Prologis and Performance Team.
This project aligns with California's goal to transition to electric drayage trucks by 2035 and electric heavy-duty trucks by 2045. The innovative microgrid solution by Prologis, in conjunction with Mainspring Energy, accelerates the deployment of EV trucks, such as Performance Team’s fleet of Volvo VNR Electric trucks that can charge up to 80% in 90 minutes.
It is our ambition to drive the industry shift toward decarbonized supply chains. Expanding the charging infrastructure for commercial electric vehicles is a key part of that. This facility strengthens our ability to offer customers a decarbonized alternative to conventional trucking and brings us closer to our goal of reaching net zero by 2040.
With support from local authorities and regulators, this initiative underscores the collaboration needed to advance clean transportation infrastructure for the trucking industry transitioning to electric vehicles in the region.
Product Spotlight:
Maersk Specialized LTL: Comprehensive solutions for your delivery needs
High claims and customer dissatisfaction with delivery can wreak havoc on your bottom line. When you have time-sensitive or high-value/fragile shipments that need expert handling you need a reliable and experienced service provider.
Maersk’s Ground Freight solution for Specialized LTL (Less-than-Truck Load), is a transportation service that expedites delivery of your goods from full mile to last mile across all zip codes and borders in North America. You can choose from value-added services such as white glove, time-definite trucking, expedited services and consolidation options.
With Maersk Specialized LTL, you can enjoy many benefits, such as:
- Optimized shipping lanes and ground network to help streamline and expedite your cargo operations
- Punctual, efficient, and quality-driven service providers, ensuring your goods arrive safely and on time
- Our digital platform gives your team visibility and control of your goods, also providing an intuitive interface to allow for ease of delivery tracking
- 24-7 local customer support, offering proactive service to ensure your shipments arrive on time and in full
To learn more about Maersk Specialized LTL and how it can benefit your business, contact us or download more information for your business: B2B or B2C. We look forward to hearing from you and helping you optimize your last mile freight needs.
More News from Maersk from around the world
- Transition to one Fossil Fuel Fee (FFF) for Contracts over 3 months’ validity
- Important information on the TP20 service connecting Asia to/from US East Coast
- Kotahi and Maersk enter second decade of committed New Zealand export freight partnership
- How port hubs will help Maersk and the Gemini Cooperation achieve its 90%+ schedule reliability goal
- Shaping a diverse, equitable, and inclusive future in tech at Maersk
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