b"JANUARY 23 - FEBRUARY 20, 2023SUPPLY CHAIN FORECASTS 11(DELAYEDcontinuedmarkets.from page 9)decline in container volumesilwu/pMa i MpaSSeh elpSis very simple: its an inven- u.S. e aStC oaStp ortStory correction. Inventory cor- Cargo moved away from rectionsalwayshitcontainertheWestCoasttotheEast volumes hard. That means thatCoastbecauseofconges-the decline will continue untiltionandwhilethatconges-theownershaverundowntion is now gone: The cargo their inventories to a more sat- hasnotcomebacktothe isfactory level. This is likelyU.S. West Coast. As long as tohappensometimeduringthereisnonewagreement the first quarter of 2023.betweenthePacificMari-time Association (PMA) and S erViCer eliaBility theInternationalLongshore D eCline and Warehouse Union, most At the same time, carriershipperswouldnotwantto servicereliabilitydroppedmove their cargo back to the offacliffattheonsetofWest Coast until a new union thepandemicin2020.Itagreement is signed.reachedabottominJanu- C arrierSa rer enegotiating The CMA CGM Ivanhoe approaches the Golden Gate Bridge in San Francisco Bay.ary2022.Thatwaswhen only 30% of vessels arrivedC ontraCtSw ithS hipperS not going to fly. So, you haveto changing rates in contractsrates in the contract?on time. Since then, we haveJensennotedthatforalotofcontractsthathavesimplytotryandhang seen a 57% improvement inmonths there has been rene- beenre-negotiatedovertheontothevolume.InsomeMSC/CoSCo p lanB igSkysTheLimit2.pdf 1 12/13/2021 3:07:20 PM nSoon-time performance, whichgotiationofexistingcon- last couple of months.cases, the carriers have actu- ew hip rDerSisasubstantialimprove- tracts: Not surprisingly, nobodyGiventhesharpdeclineally been proactive and haveIn terms of the orders for ment over 2022. In Januarywantstopay$4,000morein demand, a lot of the carri- gone to the customers saying(DELAYEDcontinued on of2022,delayswereaver- than the spot rate. Thats justers have been quite amenableshouldntweloweryourpage 12)aging8days,wearenow down below 5 days. One of the worst problems was the Transpacific service going to the West Coast in which less than 10% of vessels arrived on time in January of 2022. That situation has improved massively over 2022.f reightr ateSh aVeC raSheDJensen said freight rates: haveseenamassiveroller coasterwhereratesfrom AsiatoEuropewentfrom $14,000percontainerdown tolessthan$2,000dollars. For the Transpacific we have gone from $11,000 to $2,000.At the Port of Baltimore, the sky's the limit. There are now spot rates for containers that are below pre- Neo-Panamax cranes. 50-foot deep berths. No supply chain congestion.pandemic rates.The result has gone from absolute boom to bust for the carriers. t ranSatlantiCV oluMeS CD eClineB y10%MTheTransatlanticrates Yappear to be the odd one out: Ratesthereremainstrong CMin2022becausetheywere MYcapacity driven as a result of CYthecongestionontheU.S. West Coast driving volumes CMYtolesscongestedportson Kthe U.S. East Coast. The con-gestion on the West Coast in 2021drovemanyshippers to redirect goods to the U.S. EastCoast.Thepredictable resultwasmassiveconges-tion at ports on the U.S. East Coast. This resulted in delays andreductionsincapac-ity,whichstrengthenedthe freight rates.Thebrightpicturefor U.S. Atlantic coast ports has beguntochangeinthelast fewweeksandtheTransat-lantic spot rates have begun to come down:The latest numbers show that demand for the Atlantic ports to be down 10% so youmarylandports.com 1.800.638.7519are going to see the freight rates on the Transatlantic doMaryland Port Administration Executive Director William P. Doylethe same roller coaster ride thatyousawintheTrans-pacificandAsiatoEurope"