Our North American gateway terminals are mainly stable at this time and we have sufficient availability of dry and reefer equipment to cover customer requirements. With the few exceptions noted in the highlights section below, vessel wait times at North American ports range from 0 days to 1 day. Our teams continue to monitor terminals and ports and work to mitigate any potential disruptions. Sea-Intelligence reported Maersk as the most reliable global top-14 carrier in February 2023 with 64.9% schedule reliability.
For Transpacific Eastbound services, Maersk has been tracking alongside industry averages into the U.S. East Coast. Volumes into East Coast ports continue to outpace West Coast Ports. The Port of New York and New Jersey recently announced that it had regained the top spot as the busiest port in the United States, outpacing the key ports of Los Angeles and Long Beach. Shippers’ preference for sending their cargo to the East Coast vs. the West has been growing for some time. West Coast ports have seen their share slip from about 57% at the start of 2017 to just over 44% as of February 2023, according to Supply Chain Digest.
More recently, the preference for Gulf and East Coast ports has been driven, in part, due to concerns for labor disruptions relating to the ongoing negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) for the past 11-months. Two consecutive shifts of harbor-wide ILWU disruptions were experienced April 6-7. Trade groups such as The National Retail Federation have expressed concerns to the White House about the need for a prompt resolution of the contract negotiations to protect the supply chain and the economy.
In support of Maersk’s newly organized IMEA Region (Indian Subcontinent, Middle East & Africa), Maersk continues to deliver reliability levels in the 90th percentile for emerging markets on our MECL1 Westbound with service from Salalah, Oman, to Newark. The MECL1 is integrated with an established weekly feeder service (28X MAWINGU) connecting Mundra, India, to Salalah, enabling a 25-day transit from Mundra to Newark. The service features U.S. flagged vessels that have priority berthing into all U.S. ports of call.
West Coast Highlights
Los Angeles: Vessel wait times have jumped up to 1-2 days. Only 3 of 4 berths are available until mid-June due to berth, yard, and gate equipment modernization activity.
For weeks 15 and 17, we will be inducing the Manzanillo Container Terminal in Mexico on our TP8 service, which services Eastern China and the Pacific Southwest with stops at LA and Oakland.
Vancouver: Yard utilization is at 95%. Vessel wait times are at 4 days. The average departed rail dwell stands at 8 days. Improvements in rail and berth availability are expected in May as SM Line will depart the terminal mid-April and begin calling on Fraser Surrey.
East Coast Highlights
Norfolk: Beginning in May, a Norfolk call will be added to the TP10 rotation, whereas Jacksonville and Wilmington will be removed. Subsequently, Norfolk will be removed from the TP16 rotation while Jacksonville and Wilmington will be added. See service change announcement from February for details on changes that are anticipated to provide similar or even better transit times for most corridors.
Maersk launches new U.S.-China air cargo link
Maersk recently announced two new air freight services linking the United States with China. The new services will commence with two weekly flights between Greenville-Spartanburg International Airport and Shenyang Taoxian International Airport, and two weekly flights between Chicago Rockford International Airport and Hangzhou Xiaoshan International Airport. Both services are expected to be increased to three weekly flights beginning in May.
A.P. Moller – Maersk Global Head of Air Michel Pozas Lucic said, "With the introduction of these new routes, we are further connecting North America and Asia Pacific through regular flights and controlled capacity for our customers. At Maersk, we want to ensure that our customers have visibility, reliability, and resilience in their supply chains. Air freight continues to be an important asset in our customer's end-to-end logistics needs."
The new US-China air cargo link will be operated with three Boeing 767-300 freighters that have recently been added to the fleet of Maersk Air Cargo, the in-house cargo airline of Maersk, and will be operated by Miami-headquartered cargo airline, Amerijet International.
Maersk’s recently opened air freight gateway facility in Chicago adds more supply chain integration opportunities for customers using Chicago O'Hare International and Rockford International. The facility is a Bonded Container Freight Station with U.S. Customs and operates as a U.S. Transportation Security Administration Certified Cargo Screening Facility to ensure timely, secure handling of air freight.
In its April 4th release, the International Air Transport Association (IATA) reported air cargo showing signs of improvement with “February demand for air cargo 2.9% higher than pre-pandemic levels (February 2019) — the first time it has surpassed pre-pandemic levels in eight months.” They also reported that the global new export orders component of the manufacturing PMI, a leading indicator of cargo demand, continued to increase in February.
Visit the Maersk Air Freight section on Maersk.com for more information on how Maersk’s air cargo capacity can help customers meet their end-to-end logistics needs.
Landside Updates – E-Commerce Logistics
Shoptalk Talks on the Future of E-Commerce
In late March, Maersk personnel specializing in Maersk e-commerce logistics set up shop at “ShopTalk,” retail’s largest annual conference. More than 10,000 industry professionals representing some of the world’s biggest brands converged on Las Vegas to discuss all things retail and e-commerce, including Artificial Intelligence (AI), unified commerce, the staying power of bricks and mortar, and the essential supply chains that support it all.
This year’s event featured “Meetup at Shoptalk,” which was billed as “the largest and most advanced meetings program to ever exist in retail.” Conference organizers facilitated 50,000+ one-on-one 15-minute networking meetings over a two-day period. Woven into many layers of these conversations was how advanced technologies are becoming ever more accessible to enterprises at every level. Business is far less about intuition these days and more and more about turning data into actionable intelligence through the power of AI.
Throughout the conference, questions were posed by presenters and vendors alike to get attendees thinking about what potential opportunities the future holds for e-commerce in retail, including a key first question about Maersk itself…
- Maersk does e-commerce? Yes, we do. Since we began our journey to become an integrated transport and logistics provider back in 2016, we have significantly expanded our capabilities in e-commerce fulfilment and small parcel delivery. This means providing an end-to-end supply chain experience for customers, from “factory to consumer’s door,” using our own controlled assets and seamless global supply chain network of more than 450 warehouses around the globe. We offer a one-stop solution for online shopping cart integration, API connectivity, same-day order fulfilment throughout our strategically located North American facilities, multi-carrier shipping platforms, rate shopping, and customer facing parcel track and trace for complete visibility.
- How can we leverage AI and data to identify and support consumer trends? Activities once reserved for experts can be now be tended by AI software capable of learning, problem solving, pattern recognition, decision making, and understanding natural language (read Maersk’s take on ChatGPT). Through powerful algorithms and coding, AI is increasingly being used in e-commerce for its ability to improve demand forecasting, warehouse automation, order management, personalization and customer support. As companies master data mining to capture consumer information from digital footprints left on the web, AI-powered predictive analytics models have the ability to identify emerging consumer trends, enabling companies to optimize inventory levels to avoid stockouts or overstocking.
- How can supply chains keep pace with viral? Social media influencers can have a sudden, viral impact on consumer buying activities and the subsequent demands placed upon supply chains. Influencers have significantly impacted e-commerce by driving sales through creating engaging content within niche markets of trusting followers. A tweet or short TikTok video can cause demand to spike 300-500 percent overnight for products old and new. As influencers have become an essential component of e-commerce marketing strategies, it’s just as essential to socialize the timing of such viral strategies with trusted supply chain partners who will need to be ready to support the e-commerce surges that may result.
- What is Web3 and what might it mean for the future of e-commerce? Web 3.0 or simply, “Web3,” is an internet concept that has garnered significant investment by venture capitalists looking to be on the ground floor of what could someday be the future of the internet. Web3 incorporates technologies such as blockchain, decentralized applications, and AI, which could open a range of new possibilities such as tailored offerings based on individual preferences, greater transaction security and privacy, alternative payment options, and greater transparency and traceability of products throughout the supply chain.
If you would like to have your own conversation about the future of e-commerce without the 15-minute time limit, contact our E-Commerce Logistics experts.
Less than Container Load Bookings Go Digital
Maersk Less than Container Load (LCL) takes care of your small-volume cargo by consolidating it with other shipments to ensure on-time departures. By going digital, you can now make your LCL booking in just a few clicks.
With our website and the Maersk App, we help you manage small tasks that would otherwise take up a lot of time in your workday. It is as easy as filling out a form, receiving a quote, and booking the shipment.
Booking Maersk LCL is now easier, more reliable, and flexible. A few clicks and your booking is done. Watch a 2-minute instructional video to see just how easy booking online can be.
Topics, Trends & Insights
Supply Chain Evolution Now on Display at Innovation.Maersk.com
Curious how autonomous drones can transform warehouse inventory inspection? Or how supportive exosuits can protect employee health and safety? Or perhaps you are looking to partner on a new innovation that just might revolutionize supply chains around the world. If so, then visit the new innovation.Maersk.com.
Last month, Maersk soft-launched its new website to share the latest information on innovations designed to solve some of industry’s toughest problems. Full site access requires reader registration.
“The Maersk innovation team is using advanced technologies, and data and analytics strategies to innovate with partners and customers on eight challenge areas in all,” explained Erez Agmoni, Maersk’s Global Head of Innovation. “We are working on everything from implementing predictive analytics to increasing transparency and traceability in the supply chain, and much more.”
The site currently highlights 14 innovation projects under study in North America and will continue to expand to cover key Maersk innovation projects globally. Each project writeup takes the reader through high level overviews of the challenge faced, the idea to address it, the solution implemented, and what was achieved. Over time, some proof-of-concept projects will be concluded and removed from the site while new ones will be added. For Agmoni, learning is the one of the most important parts of the team’s work.
“With any innovation program, there will be successes as well as failures,” said Agmoni. “All experiences offer invaluable lessons. Understanding why or how something didn’t work as planned is vital to learning. What may have failed for some applications may prove to be very useful for others.”
Site visitors can also read about the functional leaders that are a driving force behind Maersk Innovation Center efforts. In addition to roles and responsibilities, short biographies are available that highlight the diverse knowledge, capabilities, and deep global expertise of the leadership team. Organizations and startups looking to solve supply chain and logistics problems can open a dialog with Maersk’s Innovation Center leaders by sharing their ideas right from the site using the “Let’s Talk” form. Visit innovation to learn more today.
Maersk Innovation Center Challenge List
- Accelerate middle-mile transportation
- Build supply chain resilience
- Develop climate-neutral solutions
- Develop future-focused real-estate models
- Expand micro-fulfilment service offerings
- Implement predictive data analytics
- Increase transparency and traceability
Learn More from the Global Maersk Team
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If you have any questions on optimizing your end-to-end supply chain, please contact your local Maersk professional.
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