U.S. imports kept chugging along, despite all the talk of supply chain problems due to Red Sea attacks and Panama’s drought.
The combination of Red Sea detours and Panama Canal restrictions is having a knock-on effect: higher Asia-West Coast rates.
Imports to Europe and the U.S. East Coast face heavy delays as Operation Prosperity Guardian fails to bring shipping back to the Red Sea.
Tanker stocks rose as expected in 2023, container shipping shares surprised to the upside, and dry bulk stocks lagged the pack.
Shipping stocks are under pressure as some ocean carriers show faith in military protection from Red Sea attacks.
Ocean shipping kept the world’s cargo flowing amid two wars and disruptions at both the Panama and Suez canals.
The key question for container shipping rates: How soon can Operation Prosperity Guardian woo traffic back to the Red Sea?
Container ships have forsaken the Red Sea route but many bulk commodity vessels continue to transit the danger zone.
A growing number of ship operators are refusing to transit the Red Sea and taking a very long detour around Africa instead.
Container-ship route diversions — first to avoid the Panama Canal, now to avoid Red Sea chaos — could help offset rate pressure from newbuilding deliveries.
Panama’s drought initially affected transits through the smaller locks. The pain has now spread to the larger Neopanamax locks.
As war rages in Europe and the Middle East, a new flashpoint in South America could pose more complications for shipping.
Next year, U.S. importers must navigate canal restrictions, diversions from the Red Sea, more canceled sailings and, possibly, a port strike.
Imports have held up surprisingly well this year, but peak season’s end and canal restrictions are finally curbing volumes.
U.S. crude exports have never been higher. Overseas buyers are incentivizing American producers to pump more “black gold.”
Commodity shipping has a well-deserved reputation for extreme volatility. The rise and expected fall in dry bulk is a case in point.
U.S. diesel exports to South America’s west coast are heavily exposed to Panama Canal delays. Tanker rates have skyrocketed.
As the Panama Canal scales back on reservation slots, more ships without reservations wait longer to get through.
MSC, the world’s largest shipping line, faces the largest-ever shipper claim for alleged damages suffered during the supply chain crisis.
There has been a surge of attacks and threats targeting Israel-linked ships, including one incident where the U.S. Navy came to the rescue.
