The multimodal network news digest - issue #37

US imports have bounced back in March (up 4.2% from March 2019), despite a significant drop in China cargo. The shifts in trade flow away from China may be driven by a combination of factors, including supply chain disruptions caused by the pandemic, rising labor costs in China, etc. There is also a rising demand for shipping services as SCFI has seen its largest weekly gain in 23 months, settling at $1,033. Higher rates may also be the result of the carriers’ capacity management as updates report successes following blank sailings and service cancelations. Some forecasts are even too good to be true, promising reassurance to shippers who have been grappling with rising rates and supply chain disruptions in recent months that the rebound is near. The Port of LA’s bumped imports serve in favor of such predictions However, from now on, it will not only be a matter of increased consumer confidence but labor agreements that need to ensure smooth operations. Charter rates are on the rise as well. 

The rising demand for shipping services drives new orderbooks of vessels which may pose a threat of overcapacity in the future. The trend is also likely to lead to increased competition among carriers, which could put downward pressure on rates.

Container depots in China are filling up due to a decline in exports, which has been attributed to a range of factors including the ongoing COVID-19 pandemic, supply chain constraints, and increasing competition from other manufacturing countries. Changes in vessel deployments and service offerings in the region are on the way. 

Hot topic

• Recent union actions at the ports of Los Angeles and Long Beach have been declared illegal by a federal agency in the United States. The National Labor Relations Board ruled that the International Longshore and Warehouse Union engaged in unfair labor practices by imposing work slowdowns and other disruptions during contract negotiations with port employers. 
• Brookfield Infrastructure Partners has agreed to acquire Triton International in a deal worth $4.7 billion creating the largest container leasing companies in the world. 
• The German government is reconsidering a proposed investment by COSCO in the Port of Hamburg, citing concerns about national security.

Routes, services & rates

• More use of small shallow-draught terminals will link ports in Asia and Europe with Ukraine through the Danube River. Maersk has become one of the first companies that started to look for alternative routes to accommodate clients from Ukraine. 
• A freshly restored rail crossing, Berezyne-Basarabeasca railway line,  between Ukraine and Moldova has seen the first launch of trains. 
• Forwarders are calling for changes to the Precision Scheduled Railroading system used by US railways, citing concerns over service disruptions and capacity issues. The PSR system, which prioritizes efficiency and cost reduction, has led to the consolidation of rail yards and the reduction of staff and equipment.
• Maersk has opened new service facilities in Mexico City in Mexico, with a dedicated satellite center in Santos, Brazil to provide repair, maintenance, and storage services for its container fleet. 
• ÖBB Rail Cargo Group starts a new service between Budapest, Hungary, Rijeka, Croatia, and Koper, Slovenia. 
• Irish Rail is developing a new rail freight terminal in Dublin as a part of a broader effort to promote rail freight as a more sustainable and efficient mode of transportation.
• MSC has added a direct call at Ennore, India on the westbound leg of its Australia Express Service (AEX). 
• TX Logistik has launched a new intermodal service linking its jointly operated Duisburg terminal in Germany with the Italian city of Padua.
• CMA CGM will call its vessels at the port of Gdansk instead of the port of Gdynia. 
• NWSA, a marine cargo operating partnership between the ports of Seattle and Tacoma in the US has launched a new incentive program to encourage shippers to use rail transportation for their cargo. The program offers discounted rates for cargo that is transported by rail and originates or terminates within the NWSA gateway.

Other

• Maersk has introduced a new methanol-powered feeder vessel, which will be used to transport cargo between ports in Northern Europe. The use of methanol as a fuel can significantly reduce carbon emissions compared to traditional marine fuels. 

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.