International Partnership: Monday, April 1st, 2024

Thank you!!

The 2024 Estes-EFW International Contest is off to a fantastic start! So far 37 account managers on 16 different teams have supplied leads for 47 accounts. Over half of these leads have quote requests associated with them! 

These international leads generally take some time to develop, but we should have wins to announce soon! We have seen some early shipping activity, though so far it has been from existing EFW customers who have been submitted by the Estes team.

To save yourself a little time, you might ask your contact if they are already using EFW, since points can only be earned for new EFW customers. However, please don’t stress over trying to figure out whether they are new to us. We will review on the backend to make sure you are getting contest points for absolutely everything that qualifies!

You can find details about this contest and about EFW’s International Services using the links below, but the EFW Sales team is always pleased to answer your further questions and to serve as an international shipping resource for our Estes counterparts.

We are excited to see the early participation! We look forward to working with you throughout the year to serve your customers’ international needs and to help you earn contest points.

Many thanks,

EFW Sales leadership

International Insights

Northeast ports prepare for Baltimore-bound freight as shippers scramble

• Ocean carriers are diverting ships to other Northeast US ports, while CSX Transportation plans on rare north-south intermodal trips to handle containers that would otherwise go through the Port of Baltimore.
• Vessel traffic in and out of the port remained suspended Wednesday, March 27, as recovery efforts resumed for 6 missing construction workers, now presumed dead, who fell in the river after the crash.
• The Maryland Port Administration has not provided a timeline on when the port will reopen.
• A temporary route is the current option, with Seagirt Terminal (Port of Baltimore’s main container terminal) planning for the arrival of 18 container ships through April 6.
• New Jersey’s Port Newark Container Terminal plans to receive 7 previously Baltimore-bound ships through the first week of April.
• The Port of Virginia said in a statement that they are working with ocean carriers whose vessels were due to call Baltimore and offering their port’s capability to discharge cargo as requested.
• Shippers are considering trucking options due to port diversions.
• Short-term trucking costs for moving cargo from New Jersey or Norfolk to Baltimore could increase between $400 - $1200 à costs will likely escalate as more truck capacity gets absorbed.
• As the port remains closed, Baltimore-area shippers will face ocean rates 20-25% higher to opt for binging cargo into NY/NJ and Norfolk, in addition to the increased trucking costs.
• NY/NJ is more suitable for some Pennsylvania-bound freight due to the short-haul length.
• Norfolk freight likely requires transloading to dry van due to economic constraints.

Ro-ro services set for months of delays after Baltimore bridge disaster

• Ro-ro services through the USEC are set for months of delay following the accident that claimed the lives of 6 people and ultimately destroyed the Baltimore bridge.
• The overflow looks to be significant- BLG logistics reports that it has 2,800 cars destined for Baltimore waiting at Bremerhaven.
• German carmakers have particular interest in the Baltimore gateway, with the Mercedes-Benz facility blocked by the bridge à will cause additional congestion at other USEC ports.
• Russell Group suggests $8bn in trade may be lost due to the damage to the bridge, with services taking 6 weeks to get back on track.
• Carriers have advised of diversions and avoidance of the port for the foreseeable future.
• Singapore’s Maritime and Port Authority (MPA) is investigating the possibility of the Singapore-flagged Dali involved being in breach of the Merchant Shipping Act.

Global Airfreight, Containerized Ocean Traffic

• While down 9% M/M, total US and Canadian container imports rose +22% Y/Y in February due to lapping weak year-ago demand, calendar shift, and incremental pull-forward due to Red Sea/Suez disruptions. While 2024 YTD volume is +18% Y/Y, our work indicates full-year 2024 volumes will likely be +0-5% Y/Y as our work indicates customers maintain cautious inventory positions, with 1H likely benefitting from extending transit time assumptions due to Red Sea/Suez.

• While falling over the last 30 days as Red Sea/Suez disruptions ease, spot ocean prices remain +100% Y/Y on the Trans-Pacific trade lane due to reduced industry capacity versus 90 days ago. Commentary indicates surcharge pricing is easing, with 2024 annual contract prices (May renewal) likely down 0-10% Y/Y on US trade lanes.

• Global air cargo demand in January rose +18% Y/Y, with our work pointing to increased Chinese eCommerce freight. However, capacity (measured as available freight-ton-kilometers) rose ~15% Y/Y due primarily to increased passenger flights.

• Airfreight rates in February accelerated M/M across two key lanes (trans-Atlantic westbound and Asia-Europe trade), while the trans-Pacific eastbound trade decelerated M/M. Rates were down ~40%+ Y/Y for the ninth consecutive month and likely have further room to decline as passenger flights increase supply.

Rail Trends



• 1Q23TD volumes at CSX are +1.6% Y/Y with a 5.3% growth in intermodal and a 1.3% decline in carloads. 1Q24TD Norfolk Southern volumes are ~+1% Y/Y with total intermodal +5.5%.
• Union Pacific’s 1Q24TD volumes are down 2% Y/Y with carload volumes down 3% and intermodal volumes down 1%. BNSF’s 1Q24TD volumes are +4.9% with carloads down 6.4% and intermodal +17.1%. 

-Paul Johnson,

Senior Vice President, International Operations

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