This week:

• Nine of the ten largest global carriers have signed an agreement to transition to using electronic bills of lading as part of the DCSA’s initiative to standardize container line processes
• Flatbed trucking activity and spot rates rise in Gulf Coast and Southeast regions
• Year-over-year decreases in US imports from Asia continue, while the Gulf Coast’s total import market share rises as East and West Coast market shares drop 

Electronic Bills of Lading will Become Standard Practice by 2030 for Top Container Lines

In 2021, only 1.2% of all bills of lading from container lines were electronic. However, on February 15, nine of the world’s ten top ocean container lines agreed to completely transition to electronic bills of lading (eBLs) by 2030. 

Migrating away from paper bills means carriers can send shipping documents to buyers and sellers across larger distances much more effectively while reducing their carbon footprints since paper bills are traditionally air couriered. Shippers, particularly mid-sized companies, will benefit from the transition after numerous shippers could not pick up goods from ports due to delays in receiving their bills of lading during the height of the pandemic. 

The nine carriers committed to the transition include Mediterranean Shipping Co., ZIM, HMM, Maersk, CMA CGM, Hapag-Lloyd, Ocean Network Express (ONE), Evergreen, and Yang Ming. The nine carriers are members of the Digital Container Shipping Association (DCSA), which is spearheading the transition to eBLs. 

Carriers were initially hesitant to sign the eBLs agreement due to concerns regarding the interoperability between third-party eBLs software providers and ExxonMobil. A test run by the DCSA last year proved that they effectively worked together without causing additional delays to the process. 

The goal of the DCSA is to standardize processes across container lines, with eBLs being the start of a larger mission. Doing so will allow shippers to conduct business across different carriers, allowing carriers to focus on competing through their core services instead. 

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Regional Activity and Spot Rates Rise for US Flatbed Trucking  

As dry-van and refrigerated truck spot rates fall without finding a bottom, flatbed truck rates have risen between the last week of January to mid-February. 

Due to a combination of moderate winter weather and the sustained strength of some industrial markets, load posts in Houston saw a week-to-week increase of 18% from January 30 to February 12. The jump in load posts pushed Houston’s average outbound spot rate for flatbeds to $2.30/mile, an increase of $0.08. Regions such as the Gulf Coast and the Southeast are already seeing rates higher than this that continue to climb. Montgomery, Alabama, experienced a $0.22 week-to-week increase for the same period, averaging $2.78/mile. Loads traveling from Montgomery to Lakeland, Florida, were $0.04 higher year-over-year, averaging $2.94/mile. 

In the week ending on February 12, flatbed linehaul spot rates sat at $2.10/mile, a slight increase of $0.01/mile. That rate is $0.06 higher than the same week in 2018, a notably strong year for the US industrial economy. 

DAT Freight and Analytics principal analyst Dean Croke reported that their forecasts show continued increases in the national flatbed rate, climbing to somewhere between $2.15 and $2.20 in the next three months.  

More Declines in US Imports from Asia Seen in January

US imports from Asia saw a month-on-month gain in January from December, rising from 1.25 million TEU to 1.29 million TEU following expected seasonal trends as retailers increased their import rates before the Chinese Lunar New Year. However, on a year-over-year basis, January’s Asia import numbers fell 22% compared with January 2022’s 1.66 million TEU. 

The overall decreases in US import numbers from Asia were visible in September last year. September 2022 had a 4.3% year-over-year TEU volume decrease, followed by a decrease of 13% in October, 15.5% in November, and 16.6% in December. Additionally, the National Retail Federation (NRF) predicts that total import volumes for the first half of 2023 will fall by almost 20% as consumers cut back on purchases. 

Amidst the overall reduction in US imports from Asia, the West Coast continues to lose its market share as shippers and retailers move cargo to the East and Gulf Coasts as International Longshore and Warehouse Union contract negotiations persist after nine months. The lengthy negotiations have retailers worried about potential disruptions in West Coast ports, leading to the West Coast losing an additional 0.06% market share from December to January, dropping from 54.7% to 54.1%. For reference, the West Coast’s market share in January 2022 was 57.2%. 

The East Coast also saw a month-on-month market share loss, falling from 37.3% to 36.2%, but still higher than the 34.8% market share in January 2022. Gulf Coast ports benefitted from the East and West Coast market share losses, with January rising to 9.4% from December’s 7.7%, an improvement from January 2022’s 7.8%.