Maersk North America Market Update — March 2024

8 April 2024

trailer graded — Aiming to provide relevant and up-to-date information to help you navigate your supply chain.

Ocean and Key Ports Update

Situation in Baltimore

In the early hours of 26 March 2024, a vessel collided with the Francis Scott Key bridge, resulting in damage to the structure. We can confirm that the container vessel “DALI”, is owned by Grace Ocean, and operated by Synergy Group. It is time chartered by Maersk and is carrying Maersk customers’ cargo. No Maersk crew and personnel were onboard the vessel. We are closely monitoring the situation. We are deeply saddened about the loss of life caused by this tragic accident and our thoughts are with all of those affected.

We understand the potential impact this may have on your logistics operation and have been releasing the most recent updates on our website and directly to customers impacted. While we remain unable to accept new bookings into or out of the Port of Baltimore, we continue to serve greater Baltimore via alternative ports such as Newark, Norfolk and Philadelphia via road and rail subject to available capacity. We continue to work with customers to determine the best solution for their Store Door service to and from Baltimore and surrounding areas.

For the latest update on the situation please see our customer advisory.

Situation in the Red Sea/Gulf of Aden

As of our latest advisory, Maersk operations through the Red Sea / Gulf of Aden, we will continue to divert vessels bound for the Red Sea / Gulf of Aden via the Cape of Good Hope. The safety of our seafarers, vessels, and your cargo is our top priority, and as such, we are adjusting our services, adding feeders, and repositioning containers to minimize the impact on your supply chain.

Visit our Stay Ahead site on the Red Sea / Gulf of Aden situation for the latest advisories, service updates, and more.

Europe & the Mediterranean

As shared in our February Market Update, measures taken to counter the effects of the ongoing Red Sea / Gulf of Aden situation are affecting our global networks. Bottlenecks across the Transatlantic network are contributing to delays in our services. Amidst these challenges and other external factors, we are proactively addressing these setbacks to ensure smooth operations and adjust departure schedules as needed.

Currently, there is notable activity on our TA1 and TA2 services from North Europe, as well as the TA5 and TA6 services departing Algeciras. Customers may encounter limitations during this time and should be aware of the most recent schedule adjustments to manage their cargo flows. Additionally, due to the Baltimore incident, delays in landside transportation are anticipated due to the increased rerouting of volumes to Norfolk and Newark.

Our CAE service to Canada continues to operate well, unaffected by the roll pools or water level issues, allowing us to consistently deliver on all sailings this past month. We are committed to improving schedule reliability across all services, enabling our customers to optimize their supply chain planning. We are working closely with our customers to provide support as we adapt to the evolving conditions in the Red Sea / Gulf of Aden. Please contact your Maersk representative to share any feedback on how we can further improve our services.

Asia Pacific

As communicated in our February Market Update, our Transpacific trades continue to experience heavy congestion and delays for the TP17 and TP88 services. However, we are pleased to announce the relaunch of our TP20 service for Asia to/from US East Coast.

Starting in mid-April, we will initiate operations of the TP20, providing direct coverage of the Greater China Area from North to South into Newark and Houston. This service will not be calling Baltimore temporarily; however, alternative discharge ports are being considered to accommodate our customer’s needs. The TP20 will function as an independent service, featuring a reliable weekly departure schedule and competitive transit times.

India, Middle East & Africa

In our Middle East / India trade, services are stable and sailing via the Cape of Good Hope. Please continue to book your shipments on our Middle East / India trades routes based on your needs.

In our South Africa trade, the grape reefer season has begun. We are currently facing some port omissions as we adjust our service to mitigate the effects of terminal productivity issues. We are also pleased to announced that we have resumed our acceptance of new bookings to and from Djibouti this past month.

Panama Canal

In response to the present water levels at Gatun Lake, the Panama Canal Authority (ACP) announced earlier this month that it will increase the number of daily slots available to accommodate the demand for transits.

After closely monitoring the development over the past weeks, we are pleased to announce that Maersk will reinstate the Panama Canal transit on our OC1 service effective May 10th, 2024. Please visit our advisory page for the latest information on this topic.

Since the beginning of last year, Gatun Lake has experienced one of the driest seasons on record, prompting the Panama Canal Authority to reduce traffic for the safe passage of ships. With this latest announcement, it will ease some of the strain on trades that rely heavily on the canal, such as the US East Coast to/from Far East Asia. We will continue to monitor the situation and adjust our services as necessary upon updates from the Panama Canal Authority.

Air Freight Update

The global air cargo market has shown resilience and continued growth post the Lunar New Year holiday, although at a slightly lower pace, as suggested by WorldACD's recent data release.

IATA Data shows that global air freight demand increased by 11.9% year on year in February, maintaining its momentum since the start of the year to meet demand. North American carriers saw 4.2% year-on-year demand growth for air cargo in February. The North America–Europe trade lane grew by 5.2% year-on-year while Asia–North America grew by 3.9% year-on-year. February capacity increased by 1.9% year-on-year.

With continuing disruptions around the Red Sea / Gulf of Aden, air freight provides a reliable solution for shipping goods as a standalone product or in combination with sea and rail, which can greatly reduce costs and transit times.

Maersk offers Sea-Air coverage for cargo from Asia to Europe, providing a streamlined solution to mitigate these ocean disruptions.

For more information on our air freight solutions and services to and from North America, please contact our team.

Topics, Trends, and Insights

How Maersk is Helping Customers Integrate Supply Chains through E-Commerce

In a recorded session at the Journal of Commerce’s TPM24 conference in March, Pooja Nagpal, Maersk Global Head of E-Commerce, unveiled key developments in Maersk’s integrator strategy, especially for businesses relying on e-commerce for growth.

Nagpal's insights shed light on Maersk's response to the e-commerce surge, managing to efficiently process more than 500,000 parcels daily in the U.S. alone.

Maersk’s diversified carrier strategy in the U.S., ensures that e-commerce businesses can rely on us for adaptable logistics solutions with the assistance of up to 20 carriers.

Additionally, Nagpal spoke on Maersk's international capabilities, highlighting its ability to navigate through complex local regulations and customs, a crucial aspect for e-commerce businesses looking to expand globally.

Watch Nagpal’s full interview for additional insights. For more information on optimizing end-to-end e-commerce logistics with order fulfilment, last-mile and cross-border delivery, visit Maersk E-Commerce Logistics on the web.