The multimodal network news digest - issue #36

Too early for the sunrise?

There is a lingering hope for improvement in the spot rates dynamic as Drewry's Composite World Container Index was doing better in the past month in comparison with March 2018 and March 2019. Although it showed 9.6% deep, the overall rate remained strong which contradicts the scenario that everyone expected (the continuous downfall of rates in the first quarter of 2023). Following this improvement, the containership charter market is experiencing a surge. Many professionals expect an improved peak season compared to last year.

However, there are still risks of disruption and it is too early to ride a wave of this trend. Therefore, when such companies as CMA CGM aggressively keep splurging on secondhand vessels to capitalize on high demand and increasing rates, it becomes concerning whether such moves would lead to overcapacity in the future. 

Routes & services 

• Ruscon, a Russian intermodal transport company, has partnered with Mountain Air Shipping, a Dubai-based container shipping company, to start a weekly container service between Saint Petersburg and Ambarli. 
• Container carriers are expressing frustration and disappointment over the recent decision of terminal operators at India's Jawaharlal Nehru Port Trust to increase tariffs. The move is expected to result in higher costs for carriers, which could ultimately be passed on to shippers. Carrier groups have called for greater transparency in the tariff-setting process and are urging the Indian government to intervene in order to prevent further cost increases.
• Uzbekistan and Georgia are increasing their trade cooperation, focusing on the Baku-Tbilisi-Kars (BTK) railway line as a gateway to the Georgian Black Sea ports.
• PSA Italy is set to launch a new rail service between the Italian port of Genoa and Kornwestheim hub in Stuttgart in May 2023.
• Vietnam is investing in a new railway line that will connect with the China-Laos railway running from Lao Cai in northern Vietnam to Hanoi, with plans to eventually extend it to Haiphong Port. 
• A new neutral shunting service has been launched in the Antwerp North rail terminal, aimed at creating a level playing field for all rail freight operators by reducing congestion and wait times.
• The Alataw Pass, a key rail border crossing between China and Kazakhstan, has seen a 10.35%  increase in the number of China-Europe freight trains passing through it in the first quarter of 2023. The pass has undergone significant upgrades and improvements in recent years to increase its capacity and efficiency.

Other 

• The migration of cargo from West Coast ports to East Coast ports in the United States is set to become a logical trend that will continue in the coming years. The shift is being driven by a number of factors, including growing demand for e-commerce and the expansion of the Panama Canal, which has made it easier for larger ships to transit. While the West Coast ports will remain important, the East Coast ports are expected to see continued growth as shippers seek more direct and efficient routes to major population centers in the eastern US.
• Cosco has reported a 35% drop in sales and leasing revenue for 2022 due to fluctuating market conditions in the container industry. Yet, the company remains optimistic and explores opportunities in other areas of the logistics sector, including port development and supply chain management.
• Several terminals at the Ports of Los Angeles and Long Beach were forced to shut down due to a lack of available dockworkers due to the labor dispute between the International Longshore and Warehouse Union and the Pacific Maritime Association. The shutdowns caused significant disruptions to cargo operations at the ports.
• Maersk has achieved the highest schedule reliability among the major carriers in February 2023.

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.