March 2024
War and drought have created shipping bottlenecks around the world, adding delays and increasing costs of maintaining supply chains. As container volume increases and labor concerns persist, healthcare distributors remain vigilant for impacts on the medical supply chain.
Panama Canal
33% Reduction In Daily Transits
WECI Pacific Spot Rate
As of February 2024
Red Sea
Sailing Around Africa Adds 20–30 Days
Change in tonnage transiting
January 2024 vs. January 2023
Developing
West Coast Trends
Volume Spikes: In January 2024, West Coast ports saw a 17.7% year-over-year increase in container volume. The Port of Long Beach experienced a 23.5% surge.
East Coast Trends
Labor Uncertainty: Contracts between 36 East Coast ports and 70,000 union dockworkers expire in September 2024.
Sources
- McKinsey & Company, “How could Panama Canal restrictions affect supply chains?” January 19, 2024.
- Marine Vessel Traffic, "Panama Canal Ship Traffic Live Map".
- 60 Minutes, “U.S. Navy response to Houthi Red Sea attacks,” February 18, 2024.
- Drewry,World Container Index (WCI).
- FreightWaves, “West Coast leads latest surge in US container imports,” February 22, 2024.
- FreightWaves, “Threat of strike looms large over East, Gulf Coast ports,” February 26, 2024.
- Federal Reserve Bank of New York, IMF Portwatch, Swiss Re Institute.
