The multimodal network news digest - issue #41

Monkey business

2M Alliance has announced a "go-slow" strategy for its Asia-Europe trade, in an effort to manage the ongoing congestion and delays at major ports in the region. The strategy involves reducing the number of sailings and slowing down vessel speeds, which is expected to help decrease congestion and improve schedule reliability. The ongoing challenges facing the container shipping industry are also reflected in the uncertainty in spot rates.  While spot rates on major trade lanes have been stuck in a range in recent weeks, Drewry’s WCI is expected to remain unchanged over the coming months indicating the fragility of the situation. The longer outlook depends on how the industry will address the challenges. For now, companies’ desire to maintain market share and keep vessels full (some carriers are offering steep discounts on shipping rates in an effort to attract customers) will lead to the rate war primarily focused on the Asia-Europe trade, where there is intense competition and overcapacity. 

German rail workers have gone on a 50-hour strike, which is expected to disrupt rail traffic across the country. The strike is being led by the EVG union, which represents around 160,000 rail workers and is in response to ongoing disputes with rail operator Deutsche Bahn over pay and working conditions.

The proposed acquisition of a 24.9% minority stake in China's Cosco Shipping Ports by CTT Holdings has received further regulatory approval. This development is expected to concentrate the flow of goods between Asia and Europe, which is significant considering China’s status as Germany’s and the Port of Hamburg’s primary trading partner.

Routes & services

• The US trucking sector is facing a number of challenges: a shortage of drivers, rising fuel costs, and supply chain disruptions. Despite a recent increase in demand, the industry is struggling to keep up with capacity, leading to higher prices for shippers. The solution is to address the problem of labor shortage and invest in technology. 
• Ukraine has joined Lithuania's free rail program, which allows shippers to use Lithuanian Railways' network to transport goods to other European countries without paying additional fees. 
• A new rail connection has been established between Gliwice Port in Poland and Marckolsheim in France. 
• The trade between Russia and China has increased by 41.3% in the first quarter of 2023, with rail transport playing a significant role in this growth. China's Belt and Road Initiative and Russia's Trans-Siberian Railway have helped to facilitate this increase.
• Rail Cargo Group (RCG) has launched a new rail connection between Vienna and Kyiv. 
• China and Pakistan have agreed to include Afghanistan in the China-Pakistan Economic Corridor (CPEC), a major infrastructure project under China's Belt and Road Initiative. The move is part of China's efforts to expand its economic influence in the region and strengthen its ties with neighboring countries.
• China-Europe rail freight services for importing meat products have resumed after a temporary suspension due to COVID-19 restrictions. 

Other

• The tank container market has seen a revival in demand post-pandemic, driven by increased trade in chemicals, foodstuffs, and liquefied gasses. This trend is likely to continue in the coming years, with the tank container industry expected to see continued growth as more shippers recognize the benefits of using tank containers for transporting liquid and gas products. 
• Evergreen has come under scrutiny over complaints from shippers regarding delays and service disruptions. The complaints follow a series of incidents in the shipping industry, including the aftermath of Suez Canal blockage and ongoing port congestion issues.
• A new bill has been introduced in the US Congress that aims to address concerns over Chinese influence in US ports and potential cyber threats. The bill would establish a new task force to investigate the potential security risks posed by Chinese investment in US ports, as well as providing additional resources for cybersecurity measures. 
• The Georgia Ports Authority (GPA) has received environmental approval for the construction of a new rail hub near Gainesville. 
• US import cargo volumes have rebounded (a 5% increase from February 2023), but are still below 2022 levels. The recovery is fragile and uncertain, with ongoing port congestion issues, supply chain disruptions, and rising costs.
• CMA CGM will acquire a controlling stake in Bolloré Logistics in a deal worth $5.5 billion. It will strengthen CMA CGM's position in the logistics industry and allow the company to offer a more integrated and diversified range of services to its customers. 

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.