The multimodal network news digest - issue #32

The pressure persists.

Spot rates for container exports from Shanghai have fallen on all major shipping routes despite capacity adjustments that resulted from shipping lines’ decision to favor blank sailings. On east-west trade lanes, spot rates for containers from Shanghai to Europe fell 3.1% to $882 per TEU. Average prices fell 3.1% to $1,234 per FEU on the route to North America's west coast. The Asia-Europe trade saw the lowest on-time performance, while the intra-Asia trade saw the highest percentage of delays.

Although schedule reliability increased in 2022, the new year started off bumpy with a 3.8 % decline. In January 2023, Maersk was the most reliable out of all the top 14 carriers followed by MSC. Overall, the pressure on supply chains persists worldwide. 

Routes and services 

• Hapag-Lloyd has divided its Gulf Caribbean Service into two new services. The North Loop will have the following rotation: Houston (US) – Altamira (Mexico) – Veracruz (Mexico) – Puerto Barrios (Guatemala) – Puerto Cortes (Honduras) – Caucedo (Dominican Republic) – Kingston (Jamaica) – Houston. The South Loop will have the rotation: Cartagena (Colombia) – Manzanillo (Mexico) – Santo Tomas / Puerto Barrios (Guatemala) – Puerto Cortes (Honduras) – Puerto Limon (Costa Rica) – Cartagena (Colombia) – Caucedo (Dominican Republic) – San Juan (Puerto Rico) – Cartagena.
• ZIM has withdrawn its China Los Angeles Express (CLX) service, which connects China, South Korea, and the US West Coast.
• Hong Kong-registered OVP Shipping plans to strengthen ties with Russia by launching its first China to St Petersburg service. 
• KTZ tries out a new rail route for China-Europe cargo transportation via Azerbaijan and Georgia to bypass the congested Black Sea. The train was sent from Jiaozhou, in eastern China, to the port of Koper, in Slovenia.
• A new rail service connecting Rennes and Lille in France is set to be launched soon by LaHaye Global Logistics, which will improve the transportation of goods between the two regions and support the development of the French rail freight sector.
• CMA CGM will be serving Comoros via Mtwara in Tanzania. The rotation will be: Colombo – Jebel Ali – Berbera (1/2) – Mogadishu – Mtwara – Beira (1/2)- Nacala – Port Victoria – Colombo.
• Two new shipping services are set to launch in April and May to connect East Africa, the Red Sea and Saudi Arabia (to link Jeddah Islamic Port and King Abdullah Port to the trade hubs of Djibouti, Mombasa, and Dar Es Salaam) by MSC. 
• Maersk has removed Doha's call on the revised Arabian Star Service to deliver more efficient and reliable services.
• CMSA has launched a new block train service in Mexico in partnership with CMA CGM and Walmart. 
• PIL has introduced an intermodal service in South Korea. The inland connection to Pugok is via rail service. we For Gunsan, Gwanju, Hwaseong, Incheon, Kwangyang, Pohang, Seoul and Yongin, the linkage is via truck service. 
• WEC Lines has expanded its services to Liverpool, UK, with the addition of new port calls in  Northern Spain, Portugal, North Africa, and the Canary Islands. 
• ONE has launched a new direct service linking the United Arab Emirates), Bahrain, and Kuwait. 

Rates

• Hapag-Lloyd will increase rates from the Middle East to the US in the range of $450-$500.
• Several ocean carriers, including Maersk and MSC, have announced a General Rate Increase of $500 per TEU for all cargo from India to the US, citing increased demand and rising costs as the reasons. 
• CMA CGM updated rates for container shipping services from the Indian subcontinent, Middle East, Gulf, Red Sea, and Egypt to the US East Coast and Gulf of Mexico. Quantum per 20': US$50 and per 40': US$600. 

Other  

• US exporters are calling for more regulatory scrutiny and enforcement to protect against potential abuses by carriers as high freight rates and capacity constraints continue to disrupt supply chains, causing significant financial losses for exporters. 
• Finnish dockworkers have reached an agreement with the Finnish Port Operators Association to end the strikes. The work will be renewed soon. 
• Cosco has acquired the remaining 25% equity interest in Xiamen Haicang Investment Co Ltd, in a move to increase its control over the Xiamen Port's Terminal and expand its presence in the Fujian province of China.
• MAWANI has launched a new shipping service that connects King Abdulaziz Port in Saudi Arabia to ports in India and Iraq. 

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.