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. 

https://duke-active.com/ru/

China is tightening the Silk belt around Europe  

The leitmotif of this week seems to be a series of several accusations looming over the horizon that will leave a deep imprint on the industry.  COSCO Shipping Ports (CSP) has begun negotiations with Hamburger Hafen Logistik (HHLA) over a possible purchase of a minority share in HHLA Container Terminal Tollerort (CTT), which signifies a major milestone for Chinese presence in Europe. Although HHLA recorded a 7.2% volume decline in its three Hamburg terminals during the first three months of the year, and the port continues to suffer congestion issues, both companies have expressed expectations for fruitful cooperation. In turn, DP World is heading towards the west of the Indian Subcontinent by using the Unifeeder Group for the acquisition of Avana Logistek, Transworld Feeders, and its unit Transworld Feeders FZCO.

A serious threat of possible consequences of the UK’s Delayed Declarations Scheme admitted not so long ago can face British customs, according to the British International Freight Association (BIFA). Following the end of the Brexit transition, the initiative gave businesses importing into the UK up to 175 days to complete their customs declarations. However, now the country lacks sufficient resources to cover the backlog, and it is not going to be easy to find brokers who could handle it on time. The UK’s failure to prepare for Brexit properly forced it to further extend the option of delaying declarations until 1 January 2022.

Sustainable development is on the roll. Teaming up in the “Green Switch” project, LDZ Loģistika Ltd. and LDZ CARGO Ltd. aim to start regular transportation of the aforementioned trailers anytime soon. Another crucial milestone will be the conversion of the Brussels Express to LNG, with the vessel to complete its first LNG bunkering at Singapore on the next round voyage. Furthermore, Tarmac, one of the largest customers of rail freight in the UK, and their rail freight partner DB Cargo UK have announced an environmentally sustainable fuels initiative. The delivery of construction materials on a key strategic route will be powered entirely by renewable fuel. 

The new rates have been introduced by MSC from European ports from Europe to Canada and Mexico. The increase ranges $500 and $1000 for 20DV and 40DV-HC respectfully.

Following the time charter rates in the past decade, the drastic changes can be spotted for 14000 TEU, 8800 TEU, 4250 TEU, 1700 vessels. They went up to $550,000 for the 14000 TEU in 2010, but ever since (before the COVID-19), remained below $400,000. The same for 8800 TEU vessels that did not go further than $220,000 before skyrocketing to $1.1 mil. in 2021. The rates for 4250 TEU, 1700 TEU vessels used to be the lowest and did not face any significant bounces, staying in the $200,000 lane. The latter is still under this rate, however, the rates for 4250 TEU vessels are as high as $410,000 in 2021.

The railway sector is speeding up, setting up a positive trend on the way to the post-crises recovery. On Friday 4 June, the first train from Nanjing in China arrived in the Dutch hub of Tilburg commemorating the start of a new regular line between the countries. Soon (from mid-June), thanks to Nurminen Logistics, a new blocktrain will connect the Finnish capital of Helsinki and Nhava Sheva, the largest container port in India. It will run via the western wing of the International North-South Transport Corridor (INSTC), which passes Iran and includes a sea leg across the Indian Ocean. Recently completed infrastructure works at Southampton have enabled Freightliner to run new, 775 meter-long intermodal trains for their client DP World. They have become the first in the country facilities capable of handling the longer trains. Terminal Container Athus (TCA) and rail operator Hupac have launched new rail services to and from the Port of Zeebrugge to strengthen intermodal trade across Europe. The terminals will initially offer one roundtrip each week with the possibility to add a second rotation if volumes are increased. Moreover, since September, the rail operator will also offer a rail link between Zeebrugge and the Polish Warsaw/Gadki.

Haropa Port has announced a new ‘Green Dock’ facility that will link directly to the Seine for river-borne and urban distribution for the Greater Paris region. It has become of interest to such freight players as Stef, DB Schenker, and CEVA Logistics.

The XPO Logistics, a leading global provider of supply chain solutions, has renewed its multi-year contract with EIZO Limited, one of the UK’s fastest-growing monitor brands. 

After six years as the chief executive of the UK Warehousing Association (UKWA), Peter Ward has resigned. UKWA said it would name his successor shortly.