ready Quingdao, China - Belarus 5 x 40FT 10t paper. Offer rates by rail toMinsk and sea to Odessa

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To comply or not to comply with the high rates? This is a question that has become not a matter of choice, but a decision forced on hauliers by shipping lines to accept the rates and the sale of driver services as a product one can buy off a haulage market. Being severely underpaid and pressured by the pandemic and Brexit, workers are now looking for more attractive alternatives such as warehouses and supermarkets. If the policy regarding payments does not change, the drivers’ labor market risks drying up. Apart from hauliers frustrated with the shipping lines, forwarders also join the club of those considering shipping lines, looking to impose haulage surcharges for cancellations and amendments into the UK, unfair. They argue that it puts the letter into a favorable position and enables them to generate vast profits while the rates continue to rise and everyone else in the industry is struggling. 

With increasing demand and tight capacity, experts expect the peak season to start earlier this year. Hence, cargo owners are being urged to book early. Even the large shippers have been impacted, so for now it seems like taking care of the pending orders in advance is the only reasonable alternative, especially if the forecasts are true and capacity limit along with high prices will extend beyond 2021. 

Another major milestone on the green frontier has happened with the initial reaction to the Fit For 55 Green Deal policy revision being evaluated as largely positive.  NGO Transport & Environment has welcomed the provision for green fuel use in aviation and maritime to cut emissions through the EU Emissions Trading System. Although it criticized the maritime element of the policy, it is still a major step towards sustainable development. There is also a mandate to increase the production and use of SAF. In turn, forwarders have called for an international standard on offsetting indirect emissions since there is no legislation on this matter yet and it is unclear to what extent the companies will commit to a new agenda. In addition, among the changes, there is a new Carbon Border Adjustment Mechanism approved by the EU. It aims to put a carbon price on imports of a target selection of products to ensure that ambitious climate action in Europe does not lead to carbon leakage.

Western European rail has fallen victim to floods with the most affected areas in the Netherlands, Belgium, and Germany. The damage on the tracks is already considerable, and, according to experts, it will take a while, even weeks, before traffic is back to normal. Despite the fact that in general rail has been portrayed as a promising sector, it has not managed to avoid the drawbacks of the pandemic. Although volumes returned to normal levels between March-May 2021 for infrastructure managers, this does not apply to their revenues. Specifically, their losses remain at approximately -10%.

However, the sombre picture for rails is not so discouraging for ADY Container, a subsidy of Azerbaijan Railways. Recently it has decided to extend its collaboration with Pasifik Eurasia by setting up a new project where ADY Containers will transport cargo from Azerbaijan to Turkey. After it, Pasifik Eurasia will carry it forward to Europe. It plays a significant role in keeping the BTK line active and increasing its volumes.

COSCO is up and thriving. The Red Sea Gateway Terminal has announced the completion of a 40% equity sale to the Public Investment Fund and COSCO Shipping Ports.  The investment in RSGT is aligned with PIF’s 2021-2025 strategy focusing on key priority sectors, including Transport and Logistics and capturing significant intra-Red Sea trans-shipment cargo volumes. Meanwhile, Hapag-Lloyd is not going to lose its position and closes the acquisition of Nile Dutch Investments B.V. planning to complete commercial integration by the end of 2021. The acquisition will strengthen Hapag-Lloyd’s position in West Africa.

As contagious as COVID-19, congestions spill worldwide aiming at new targets – developing countries and low-margin businesses. 

The global congestion is on the roll. Recent data ranks the world’s main ports according to the most congested box spots among which are Hong Kong, Oakland, Savannah, Seattle, and Vancouver. In addition, experts have estimated that currently 10% of the world’s shipping capacity has been taken out due to port congestion issues. The famous Yantian’s congestion that has only recently been eased up continues shaking up the industry this time with schedule changes. It has also revealed such pain spots as the traffic situation and extra transfers between PRD terminals. 

Consequently, unsustainable container shipping prices significantly filter down through supply chains and as the result, most imported goods are expected to achieve sizeable increases in prices in the coming months. Apart from Brexit and COVID already impacting the market, experts warn about risks that will hit low-margin businesses in particular. The situation is devastating for all players, but the ones coming from developing countries suffer the most. For many of them, the tariffs are prohibitive and they cannot ship their products. Many countries are being sidelined as major shipping lines are not calling at their ports anymore. 

As the means of facilitating healthier competition and restricting the increased influence of big companies, the Federal Maritime Commission and the Department of Justice Antitrust Division have signed an interagency Memorandum of Understanding amid to increase cooperation on oversight of the ocean liner shipping industry. The step demonstrates the government’s intention to flip the tables and change the rules of the game towards a fairer environment. 

In a world where everything is interconnected, the devastating effect of one disruptor causes a domino effect for other facilities. The Port of Vancouver is continuing to suffer from the consequences of wildfires in British Columbia. Rail backlog at the port remains substantial. 

Trying to ease the export backlog, the Chittagong Port Authority uses its own methods – it has approved plying of four new feeder vessels in the Chittagong-Colombo route. In turn, Maersk has taken huge booking of containers although it has no feeder vessels in this route. 

Vietnam has been on the rise in terms of international trade, however, the shut down of Ho Chi Minh City that used to be one of the busiest harbors has become a major drawback. There is still good news – rail in Asia is doing well. Even with prices increased, it turns out to be the most reliable way to ship goods from Asia to Europe because of the efficient network.

Such industry giants as Maersk and COSCO continue conducting a rigorous policy – it is now planning to order up to a dozen 15,000 TEU methanol-fuelled container ships at Hyundai Heavy Industries. COSCO, ONE, Yang Ming follow suit and plan to kick off new sizable deals.

Good news commemorate air freight with FAA has finally extended the exemption which allows passenger aircraft to carry cargo in the cabin after years of Airlines for America members unsuccessfully requesting it. The positive change will contribute to the move on cargo capacity, which is extremely vital for the existing constraints.  

Evergreen Marine Corporation is on a mission to expand its fleet, including subsidiaries, by splashing out nearly $40m for 6,000 refrigerated containers from China. The move is planned to improve its competitiveness and bring it back on track after the crisis. 

Even such giants targeting mass consumption as Walmart join in the green agenda. It plans to add a pillar to its Project Gigaton effort to reduce supplier emissions that is focused specifically on transportation partners. Within the framework of the Project, it is expected to cumulatively avoid one billion metric tons of greenhouse gases in scope 3 emissions by 2030.

The US ports continue to set records in handling TEU. This time it is Port of Charleston that managed 2.55 million containers, representing a 10% increase from last year. For Port Houston, it has been a total of 292,627 TEUs for June.

Meanwhile, the Montreal Port Authority is preparing to expand its Contrecœur terminal. Its favorable industrial zoning and location near rail and highway access will enable the new facility to become an eco-friendly opportunity for private partners.

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With the peak season approaching, more uncertainties arise. As some ports experience minor improvements, new challenges make it doubtful that stability is looming over.

Despite Brexit and the post-pandemic reality, not all ports experience too many difficulties. In particular, the Port of Antwerp’s TEU throughput grew by 4.3% year-on-year (YoY), according to the recent data. Antwerp has big potential to become a getaway between the EU and the UK. However, it will take a while to happen, as the sky is not really clear above the port – Maersk and MSC temporarily omit the Antwerp call for six weeks.

Ocean lines have become targets of new allegations. Ocean carriers are being accused of forcing shippers to purchase extra products, such as customs clearance and insurance to increase their prospects of shipment. Without buying these add-on products, shippers would struggle to get their cargo booked which is a low blow for small ones. 

It may seem that Brexit has only made the situation more perplexed, however, for the China-UK route it has offered the development of Kaliningrad as a transhipment point. It allows bypassing EU, thus avoiding additional declaration and controls, and proves to be faster. It is not the only alternative offered to the rail market. If the situation with Belarus does not improve, the Zamość terminal near the Polish-Ukrainian border will be a great point to respond to the growing number of Europe-China trains. The expansion of it implies the construction of a new area with more capacity. 

Will rail prosperity concern the UK in the light of the upcoming peak season? Experts are uncertain as they call the government to access the situation critically before it takes summer recess. So far, the officials have identified three key strategies as a part of the Integrated Rail Plan or the Transport Decarbonisation Plan. 

Meanwhile, the UK ports are also confused about how they will operate and be governed, several months after eight winning bids were announced for the new economic zones. They were considered a key imitative for the post-Brexit recovery as these zones are generally exempt from customs duties.

The truck shortages have revealed another pain point – the workers have been underpaid for long and drivers have experienced unsociable hours linked to container work and numerous other challenges. The government’s attempt to resolve it has failed. Even for the UK alone, data shows that the full scale of the driver shortage may not be realised for some time, thus drivers simply leave/move to warehouses.  

On the way to a sustainable future, the EU is to announce a revision to environmental policy that will include aviation and maritime sectors. The intention itself already demonstrates that authorities recognize the fact that climate has no borders and all sectors have to be involved.

The Ever Given saga has led to devastating consequences for anything but the canal’s revenues that despite the hardships have reached a record US$5.84 billion in its financial year (FY). Additionally, the canal authority said that 9,763 vessels passed through the Suez Canal during the first half of 2021, increased by 217 ships compared with the same period last year.

The Rhein-Ruhr-Rail Connection (3RX) will welcome a new study on the feasibility of it in the fall. The updated SCBA will be broader in scope than the previous SCBA with Belgium taking the lead. 

The notoriously famous story of sinking of Pearl-X got a new span – X-Press Feeders has made an initial payment of $3.6 million to the Sri Lankan government is continuing to contribute to the clearance of the water. Discussions are ongoing on the payment of further claims. 

Tinsley, the marshaling yard shared Sheffield and Rotherham is seeing a resurgence of traffic. The point will prove a further opportunity to move more goods by rail and the associated environmental benefits.

German CargoBeamer taps into multimodal development and sets its first full multimodal terminal into operation amid to build the new brand of road-rail combined transport to France and Northwest Europe.

https://youtu.be/kzP7zdglRWQ

Shippers fire up their concerns as government becomes more determined to crack down the existing monopoly. A new battle ground has emerged?

As carriers are expected to enjoy rapidly growing profits at least through 2021, anticipating surpassing $100 billion for the year, executive regulations are looming over the horizon. A new order has been signed by Joe Biden amid to crack down on anticompetitive behavior in rail and ocean shipping industries by investigating and punishing unfair conducts. Federal Maritime Commission backs this decision. However, it is uncertain whether the government’s hand can regulate the current situation so easily. In response to the announced initiative, the liner lobby group has voiced its concerns about whether the administration is focused on the right priorities. The group and supporters of the opposite from the president’s opinion believe that the problem is rooted in unprecedented demand that has to be normalized first. Some have also commented that the new regulation is only going to create smoke without fire. It is shaky grounds especially in the light of the existing obstacles. Even if some shippers have managed to negotiate excellent rates with ocean freight carriers, they cannot take a finger off the pulse, as now there is a market trend where carriers are increasingly prioritizing high-paying cargo over contract rates with anyone other than their biggest customers. Meanwhile, the demand that is seen as one of the causes of the current crises is not expected to go down shortly – imports continue to break records. For instance, U.S. ports covered by Global Port Tracker handled 2.33 million TEU in May 2021.

At the same time, ocean freight spot rates have surged over the last week, with average rises close to 5% across the eight major East-West trades. One of the reasons behind the increased numbers is the competition among shippers fighting for “a place in the sun”, cargo slots. Experts note that a large retailer fighting a small retailer in the same line of business could use a freight rate that is $5,000 lower than its competitor even if the larger one is still paying far above what it was paying last year.

 Antwerp has become a new pain point, suffering the knock-on effect of terminal and quay congestion. Nevertheless, according to industry players, the overall situation at North Europe’s container hubs is improving. All the recent challenges have proved the importance of port workers who have been working under all these pressuring conditions. While some blame quarantine and the secondary effects of Covid-19 vaccination on workers, together with the upcoming vacation period leading to further disruptions, others argue that dockers should never be considered a problem. 

If the situation with Belarus becomes more perplexed, the Zamość terminal near the Polish-Ukrainian border can become a possible alternative for Europe-China trains. It is to be expanded to respond to the growing number of trains passing through this border. The station is considered valuable for trains on the New Silk Road and rail transport within Europe.

The transpacific tradelane has gained a new player – China United Lines with service out of Shanghai to Los Angeles with five chartered ships. The decision is motivated by the government’s request to add more capacity to long-haul routes.

Levi’s shifts its cargo volumes due to supply chain disruptors. The company now shipping most of its products through the U.S. East Coast amid prolonged delays and struggles in Long Beach. The decision to divert freight was one of many actions Levi's supply chain team to mitigate risk. 

A collision of the Ultra Large Container Vessel operated by Ocean Network Express has occurred with a bulk carrier in the Straits of Malacca on 11 July. Nobody was hurt; however, the details are still being investigated.

https://youtu.be/VJH5W0ijdWc

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