Rates break through the roof. Does it mean that the sky is no longer a limit?

The need for governmental support for the green initiatives in the light of pandemic recovery has been confirmed by the European member states. Collectively, they will allocate at least 85 billion euros to sustainably transport as part of the National Recovery and Resilience Plans. The spectrum of objectives varies from the development of digital railway infrastructure and charging stations for electric cars to seamless urban mobility. Rail, in particular, may benefit from 50 billion euros that are planned in the budget for the enhancement of clean energy including hydrogen. Business follows suit and uses the opportunity since the Government has set the rail industry a stretching target to achieve net-zero carbon emissions by 2050. DB Cargo UK and Maritime Intermodal have announced they conducted trials of 100% renewable Hydro-Treated Vegetable Oil (HVO) on their rail freight services from the Port of Felixstowe to the East Midlands Gateway freight terminal. In turn, operatives at PSA Antwerp will conduct studies into dual fuel (hydrogen/diesel) straddle carriers.

The clouds are thickening above Yantian. The congestion’s aftereffects are spreading like circles on the water and top the effect of those of the Suez – 300 vessels are now waiting due to disruptions at various ports which accounts for 5.5% of all vessels. From Shekou to Seattle, Amsterdam to Auckland, containerships are backing up like never before in the 65-year history of the industry. Due to further measures being implemented, increased congestion and vessel delays upwards of 16 days are expected in Yantian port. Comparing to the past, there would be plenty of buffer in the system to handle most of these disruptions, but with the networks stretched thin, every additional disruption is adding to the backlog now. Carriers, faced with increasing congestion, low productivity, and a mounting backlog of exports in southern China have been forced to omit port calls. Ocean Network Express had to add a $1,000 surcharge on reefer cargo to Yantian to cover additional costs related to the unexpected but necessary arrangement of shipments and associated plug-in charges. The situation boosts spot rates even more edging towards $20,000 per 40ft. It is an incredible 1,000% increase for the trade. Consequently, many retailers will not be able to shift stock at skyrocketed retail prices. Experts warn that many UK importers will find themselves trapped, paying eight times more for freight than last year, and expect insolvencies in 2022. Globally, numerous shipment suspensions have been announced in several regions across the world: to Cabinda in Angola; Hapag-Lloyd has confirmed it temporarily suspends all imports into East Malaysia ports (Kuching, Sibu, Bintulu, Kota Kinabalu, Labuan, Sandakan, Tawau – all due to blockages.

Unusual situations require extraordinary solutions. Hence, CMA CGM has signed a five-year partnership agreement with the French government space agency, to develop a range of topics including smart ship routing, the maritime energy transition, upgrading of port activities and infrastructures, and contributions of the space sector to the logistics optimization. 

Negotiations between the EU and the UK on the Northern Ireland Protocol seem to require a mediator. Washington has expressed deep concerns over the lack of common ground regarding the question whether an agreement should be based on ‘temporary equivalence’ (the UK) or ‘temporary dynamic alignment’ (the EU). There are clear solutions available – both sides tell they are in favor of a veterinarian agreement that would free up the most difficult trade in meat and dairy goods, however, the final decision has not been made yet. Meanwhile, business values its time – Unifeeder aims to strengthen its presence in Northern Europe and launches a new service connecting the Hubport of Southampton to the Irish Sea and the ports of Cork, Belfast, and Dublin.

The rail industry is actively moving forward regardless of the storm at sea.  Cargobeamer is opening its first terminal in Calais on 16 June. The terminal will enable the loading of uncranable semi-trailers on the train. Curtici in Romania becomes key for transit to and from Turkey. The service is offered by Rail Cargo Group and is part of the connection between Istanbul and central European destinations like Budapest and Brno. The new terminal started operating a week ago on the Kazakh-Chinese border. The Silk Road getaway is a part of the major project – in the future, the terminal’s final capacity will reach 700 thousand TEUs. However, there is currently a potential disruption looming over the railway horizon. Asia-Europe shippers and freight forwarders using the overland rail routes have been warned of potential obstacles that may arise due to the recent diversion of a passenger plane. Additionally re-routing of a high number of flights to China, Japan, and South Korea that regularly fly over Belarusian airspace will increase flight times and will result in the reduction of cargo capacity. 

The ice breaks among hauliers. Despite the shortages and capacity limits, such company as Fergusons Transport expands its partnership with Universal Wolf. Universal Wolf now uses Fergusons trailers and trucks to transport its goods across the country, so far clocking up nearly 50,000 miles across well over 100 jobs in recent months. For both partners, it is a long-lasting strategy to retain their leading positions.

https://youtu.be/U2nimL9Fr4E

It is not a pretty sight at Yantian Port: backed up vessels, box shortages and continuous delays – companies brace up for another week of congestion. 

The recent outbreak at Yantian Port has caused a jam of the principal goods highway – numerous vessels are now backed up in the South China Sea, while others have sought alternatives in western Shenzhen, Hong Kong, and Nansha. The ports have been hit with a devastating box shortage. The increased congestion and vessel delays upwards of 16 days will follow in Yantian port. Road congestion is also expected, meaning that the situation continues to deteriorate. Meanwhile, the Singaporean carrier has decided to apply a congestion surcharge of $1,000 per container to cover additional costs related to the unexpected but necessary arrangement of shipments and associated plug-in charges and monitoring fees. If a change of destination (COD) is requested to discharge inbound reefers from Yantian to other alternative ports, CGD and COD administration fees can be waived. This measure is effective immediately for all reefer cargo arriving into Yantian from 10 June 2021 onwards, and for regulated trades. According to the data, there are now more than 300 containerships waiting for berth spaces to open up around the world. The new COVID-19 outbreak has forced the government to impose new sanitary measures that complicate transportation processes: the port of Nansha now requires a negative test within 48 hours of gaining entry, and at the same time, Yantian will not allow a driver who has been to Nansha to come into their terminal. 

The high rates have brought up the new players seeking opportunities for expansion. BAL Container Line has become the latest entrant into the Transpacific and Asia-Europe lanes. Facing the high costs and equipment shortages, the company has decided to use its ships to increase the capacity of China-Europe routes to satisfy the growing demand. 

Meanwhile, the PTC Holding Group of Companies aims to develop a multifunctional zone that will also include an industrial area and a dry port. So far, the first stage of the initiative has been completed – a new transshipment terminal on the Kazakh-Chinese border started operating last week. It will undergo several expansion – the target goal is to enable its capacity of 700 thousand TEUs. It is the busiest point along the New Silk Road, so the new terminal, will have an ancillary role for better traffic management.

The lack of capacity affects air cargo as well. It continues to result in elevated rates with prices from Hong Kong to the U.S. reaching $8.07/kg as of Monday, June 7. However, as air cargo volume was up 41% YoY in May, it showed slight signs of recovery. The experts warn that it was still down 4% compared to May 2019, suggesting the market has room to grow to retain its pre-pandemic operating levels. A relatively positive dynamic finds its reflection in air companies expanding their stuff’s capacity – Aero Africa has welcomed two specialists to its management team in China and southern Africa. 

The U.S. supply chains are no exception when it comes to failing to meet the soaring demand. Recent data has demonstrated that the country’s ports saw record traffic in April 2021 – the biggest gateways in the US handled was approximately 2.15 million TEU. The update for May is not available yet, but some forecasts predict that US ports will carry 2.32 million TEU, which would be a 51.1% YoY increase and beath April’s monthly record. South Carolina Ports (SC Ports) has had yet another record month for containers handled at the Port of Charleston, marking the third consecutive month of record volumes – the increase of 36%. The Port of Long Beach moves half of all of its cargo by rail in the long-term future, following the announcement of $1 billion in on-dock rail investment for the next 10 years.

The Global Shippers’ Forum has used the current disruption in supply chains to renew its call for the removal of the consortia block exemption regulation. There is a predominant opinion that if rates and costs were the product of fair competition, the overall transparency of the industry would significantly increase as well as confidence in the market. It is possible to achieve this through the development of specific agreements between the lines, which are regulated and reviewed. In turn, South Korea’s anti-trust authority has slapped penalties on 23 liner operators for colluding to fix freight ratesas a part of their anti-monopoly agenda, proving that the industry is indeed concerned with the aforementioned problem. HMM, SM Merchant Marine (SM Line), Sinokor Merchant Marine, and Pan Ocean are among the 23 errant companies.

DP World UAE Region has announced it will build on its support and partnership with Chinese companies to boost trade between the region and China and strengthen its presence. The project takes place under the Belt & Road Initiative (BRI). The market will give traders and businesses access to discounts with minimized supply chain costs and turnaround times. 

The International Maritime Organization (IMO) environmental meeting took place on June 11, with a row between Japan and its neighbors over the dumping of contaminated water into the ocean. It comes from the Fukushima Nuclear Power Station, damaged in the 2011 tsunami.

Добрый день. Международная компания ГЛС в России готова предоставить различные виды услуг доставки контейнера из Китая в Россию ,так же предоставляет оформление груза на территории РФ,и доставку до вашего склада. Просчёт бесплатно.

"Duke-active" делает мир логистики проще и лучше, а Вас спокойными и уверенными за процессы доставки и транспортировки:)

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"Duke-active" makes the world of logistics easier and better, so you can be calm, and have confidence in the processes of transportation

https://youtu.be/2qc0F79l08g

Добрый день!

Предоставляю экспедиторские услуги от лица компании "UkraMarine".

Более 15 лет мы помогаем экспортёрам и импортёрам доставлять грузы из разных точек мира и решаем логистические задачи любой сложности :)

Буду рада общению :)

Также, с радостью помогу с просчётом ставки под Ваши контракты.

Хорошего дня.

Продам контейнера 20GP, 20HQ, 40GP, 40HQ

#порт #контейнеры #грузоперевозки

MSC is vigorously moving towards becoming the largest carrier. What does it mean for Maersk? 

A monumental milestone is approaching for MSC in its buying spree as its fleet capacity edges above 4m TEU. It is on the cusp of overtaking 2M partner Maersk and becoming the largest carrier. The gap between the two industry giants is just 106,000 TEU. In contrast, with 40 vessels, representing 724,000 TEU, under construction, MSC has the largest orderbook of all the container lines. The company has demonstrated a significant expansion that accounts for 4% this year.  

With consumers reverting to spending their money on services in post-pandemic world and the frontloading of goods, importers are facing a looming threat to demand. The biggest challenge will be for carriers locked into long-term expensive charters because the soaring freight rates have forced them to charter extra tonnage, driving daily rates to high levels. However, according to the recent update, the freight rates carriers are currently able to charge, both on the spot and long-term contracts, are more than enough to cover the higher charter rates. When the average shipping cost per TEU was around $1,000, many lines reported achieving an average rate per TEU of $1,500, with more increases set to work through – it illustrated just how profitable today’s market conditions are. However, carriers need the high freight rates to continue for some time to insulate them from the cost of their long-term charters.

Long-suffering cargo owners have to brace against further contagion of the Port Yantian. The analysts warn that the disruption would eventually spill over and disrupt European and North American markets. Since the end of May, the Alliance has canceled or transferred 29 calls and confirmed omissions running up to June 25. Operations in YICT’s eastern area of the terminal – where mother vessels mainly berth – continue to experience low productivity, which is about 30% of its normal level, while all operations in the western area of YICT have been suspended until further notice.

In Italy, the tax police have seized assets worth more than $24 mil. from the local unit Deutsche Post DHL as part of a fraud investigation. The company has already stated that it has always complied with the law and will provide to the investigators all the needed cooperation. Milan prosecutors allege that an unnamed company that identifies itself as a Deutsche Post DHL’s unit failed to pay value-added taxes and pension contributions due for staff by relying on contractors instead of hired workers.

The road transport market demonstrates a more positive forecast regarding a post-pandemic recovery. European road freight spot prices jumped by more than 8% in May to a three-year high as available capacity plummeted to a three-year low – experts attribute it as a positive sign. Transport capacity and prices on the route between France and Great Britain are developing in line with the trends observed in the overall market. Compared to the previous month, transport capacities on the corridor fell significantly – by 25.4%. They now stand at 88.1 index points. 

ArcelorMittal plans to add 1,200 new wagons to its Ukrainian fleet during 2021-2022, which will increase its owned fleet by 1.5 times, to make its supply chain between the two sites and customer run smoother. The new Theemsweg route in the port of Rotterdam is about to be connected to the Harbour Line. Although it is good news, it also means that the crucial rail freight corridor will be unavailable for six days in the first week of November. However, the initiative is excepted to pay off – it is an important strategic step forward because there will be more rail capacity and the perpetually disruptive Calandbrug will finally be replaced by a piece of new railway line in the largest port of Europe. The New Silk Road acquires a direct connection between Shanxi and Paris.

In Austria, a legal amendment has been proposed to increase the transport of waste by rail in alignment with the EU green strategy. Currently, 80% of this waste is still transported by road, although the cargo type is very suitable for rail transport.” To ensure the CO2-neutral supply and disposal chain for commercial and industrial parks, the ÖBB suggests making a rail connection a prerequisite for the approval of commercial and industrial parks in the future.

Britain’s changing economic profile has highlighted the need for more rail-served warehousing because the model of a trading economy is now far more dependent on distribution than manufacturing. That new pattern of demand is driving the development of a network of designated Strategic Rail Freight Interchanges (SRFIs) – purpose-built to handle distributed goods, primarily in intermodal containers, but also serving growing markets in express freight and high-speed parcels.

Lufthansa and United have demonstrated a relatively good resilience to the crisis thanks to their transatlantic cargo joint venture. The two companies are no focusing on deepening the partnership by accelerating connection and data exchange to provide joint solutions to customers.

Reshoring of the U.S. supply chain is back in the talks in the White House. Yantian’s ripple effect surpasses the effect of the Suez incident

The U.S. brings back the discussion of reshoring American supply chain outlined in the recent Supply Chain Report. The question have been in the talks for months, and now Biden’s administration aims to develop initiatives that will enhance and expand the U.S. domestic capacity since multiple industries are facing shortages due to supply chain issues caused by a combination of high demand and pandemic-related disruptions. 

The unstable situation in Myanmar calls many garment manufacturers to consider leaving the country, which creates uncertainty for domestic freight forwarders. The protests, the possibility of the lockdown, and implemented curfew alongside army checkpoints have made transportation inefficient and costly (also partly due to a doubling of fuel prices). Almost 75% of the feeder services connecting Myanmar to mother-vessels have been canceled, and most of the carriers are not accepting bookings to the US and Canada. 

The contagion of the Port of Yantian imposes the threat of spreading around the world, according to the experts. Since the coronavirus outbreak in southern China, carriers have already announced significant disruptions of sailings and schedules canceling or transferring 29 calls since the end of May and confirming omissions running up to June 25. Container dwell times at Yantian rose to eight days the week of May 30. So far, the congestion has blocked more boxes and done more damage than the Suez Canal incident since its spreading further. During the 14 days of Yantian port congestion, the port has been unable to handle approximately 357,000 TEU, while Suez Canal blockage was impacting a daily flow of 55,000 TEU for six days, which translates to a total of 330,000 TEU. Other alternative ports of China such as Nansha, Shekou, and Hong Kong do not have the facilities to handle all the extra box flow. Each of the ports also saw major week-on-week drops in incoming boxes with an average change between Week 21 and Week 22 of -4.1% at Yantian, -16.7% at Shekou, and -10% at Nansha. However, the Guangzhou Port Company confirmed on 7 June that Nansha Port Area is operating normally without Covid-19 cases. It can be a future substitute for Yantian – when phase 4 of the Nansha port development is completed this year, the port's annual throughput could exceed 18 million TEU.

Meanwhile, the U.S. container import volumes continue to set records and add to pressures on ports and other logistics infrastructure to meet the boom in demand, with supply chain disruptions, port congestion, and rising shipping costs set to continue throughout 2021. The first half of 2021 is forecast at 12.8 million TEU, up 35.3% over the same period in 2020. However, the pressure on the supply chains and the necessity to adjust quickly do not divert the industry’s focus from the green initiatives. They are gradually becoming a part of nowadays agenda. The Port of Long Beach and the Utah Inland Port Authority have signed a deal to develop cleaner, more cost-effective, and innovative strategies aimed at moving goods quickly, safely, and efficiently across the US. The ports of Seattle and Tacoma and the Northwest Seaport Alliance (NWSA) urgently call for active government support. They believe that a sustainable future is in the hands of both – the State and the industry. They expect the government to cut emissions and noise pollution from container vessels. The Port of Los Angeles has teamed up with partners to launch five new hydrogen-powered fuel cell electric vehicles (FCEVs) and the opening of two hydrogen fuelling stations.

MSC is on its way to become the largest carrier as its fleet capacity edges above 4m TEU, overtaking 2M partner Maersk. It has expanded by 4% so far this year. Moreover, the current market leader has a virtually empty orderbook as it commits its efforts to research and development into alternative fuels. 

HMM will take measures to address a soaring demand in the upcoming peak season. It will double its extra loader transpacific services from next month. Taiwan-based Wan Hai Lines is expanding its network by launching a new weekly service between Asia and the east coast of the US. 

As for X-Pearl, its owner believes that further oil pollution is not expected. State prosecutors in Sri Lanka are accusing X-Press Feeders and its parent, Sea Consortium, of a cover-up, claiming that they deleted key emails. Industry experts have proposed their theories on how the catastrophe could have been avoided.

The New Silk Road acquired another direct connection between Shanxi in China and Paris in France. The very first train departed on 2 June, carrying 50 40-foot containers. It will travel through the Erenhot border-crossing and enter Europe after passing through Mongolia, Russia, Belarus, Poland, and Germany.

Asian ports refuse entry to Evergreen ship, hit by the COVID-19, with dead captain onboard. The ship has been diverted to call Italy first in order to repatriate the captain, but the situation is yet to be resolved.