More providers from China, India, Vietnam and other countries published their rates to Singapore, Vietnam, Thailand, Japan, Korea, Philippines, Malaysia, Cambodia, Indonesia, Myanmar, Pakistan, India, Saudi Arabia, Australia, United States, Canada, Mexico, Germany, Netherlands, Hungary, United Kingdom, Tanzania, Nigeria, Ghana, as well as from Europe and UK to China and other directions and locations.
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The major flooding across Pakistan has seen up to 7,000 containers stranded on the road between Karachi and Chaman (pictured), on the Afghan border, south-east of Kandahar, but shipping lines have not waived their detention & demurrage (D&D) charges.
Many trucks were carrying empties being returned to the carriers, but as the free rental time on the boxes ended, the D&D charges kicked in and the lines started to see the cash pouring into their coffers.
Estimates of up to $14m in D&D charges are thought to have been levied by major lines, mainly Yang Ming, OOCL and HMM, as well as other smaller carriers, since the middle of last month when the floods hit.
Traders have hit back at being charged anything from $130-$170 per day per container for “holding onto” boxes that could not be returned as Pakistan suffered some of the worst flooding in its history, with estimates of one-third of the country being under water.
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The inflationary pressures are causing negative consequences across numerous industries and it is expected that most of the major economies will slow down. Experts report that Asian export growth will slump in the second half of this year and more and more carriers will cancel sailing due to their inability to sustain the supply/demand dynamic. Chiana with its no-tolerance to COVID still has to cope with lockdown consequences. In Yantian and Shekou ports, the movement restrictions have been extended. In turn, capacity continues to drop. if the skyrocketing capacity used to drive the spot rates up, now they are consequently decreasing. There is a 5% fall in Asia-North Europe component, to $7,583 per 40ft. Rates offered this week on sailings from China, valid through to November, are now below $6,000 per 40ft. In the transpacific, the WCI Asia to US west coast reading tumbled another 9%, to $5,662 per 40ft. For east coast rates, the decline is 3%, at $9,304. Carries are trying to unveil blank sailings. CMA CGM will blank five sailings in the period surrounding China’s Golden Week, removing close to 100,000 teu from Asia to Europe trades.
The perplexing situation is forcing small players out of the transpacific trade. The rates of the past two years encouraged companies to quickly invest in emerging services but as the bubble busted, little to no ROI has been achieved. In order to survive, they should have diversified and integrated other services.
U Shippers Group Inc. is blaming Maersk for violation of the 2020 contract. The company claims that Maersk did not provide the shipping volume it had committed to. The deal is currently under review.
Strikes spread to Liverpool after a pay package of 8.3% was rejected by the union, following demands for greater pay increases. It is reported that more strikes are scheduled. Lufthansa Cargo pilots are on the strike too which will lead to changes to some flight schedules. The details will be announced.
Rail shift
With the focus now on Ukraine, Malaszewice in Poland has lost its status of the EU core network. The facility will no longer receive funding except for the one provided by the Polish government. It is said in the discussions that the invested money has not been used efficiently.
The EU is also cautious of China’s growing presence in infrastructure. For now, the talks are about maintaining and strengthening its transport links with Latin America, Africa, and Asia.
The first section of the Zahedan-Chabahar railway line is nearing completion. It is the part of th connection that needs to be built in order to connect Iran’s central network and the corridors spanning it. A big part of the development plays India as the Zahedan-Chabahar line (a vital element in the supply chain with Russia) has been on its priority list for years.
The US Department of Transportation has announced the availability of more than US$1.4 billion in Consolidated Rail Infrastructure and Safety Improvement Grant funding. Higher levels of funding will accelerate progress in building up infrastructure resilience.
Other
Hutchison Port Holdings and MSC subsidiary Terminal Investment are joining efforts to develop a container terminal with five deepsea berths at Rotterdam. As the result, fewer direct calls from the UK are expected meaning that the two ports will strengthen their competitive advantage which comes in handy, especially in the light of strikes in Felixstowe.
Italy, backed by KLM-France and U.S. private equity fund Certares is planning to buy a majority stake in ITA Airways as a response to a rival bid presented by MSC and Germany's Lufthansa to buy control of the successor to Alitalia. Air France-KLM will be Certares’ operatonal partner.
Rail Cargo Group’s has added a connection between Genk in Belgium and Curtici in Romania. Curtici is promisingly becoming one of the fasters-growing transport hubs for 2022 in Europe.
Maersk has acquired LF Logistics in Hong Kong. The company will add 223 warehouses to the existing portfolio, bringing the total number of facilities to 549 globally. The move is a part of a partnership strategy with Li & Fung.
ONE has launched a new feeder service between India, Sri Lanka and Singapore. The port rotation will be Hazira, India – Colombo, Sri Lanka – Singapore.
These are only several changes that occurred in more than 250 bn freight rates across 25 million routes with more than 1 million market players. Want to share some news about your company, services, and routes? Just post them on MAXMODAL, a multimodal network that digitally connects routes and rates worldwide to automate sales and operations across container transportation & logistics industry. Join to innovate.
