Newsletter: April 26, 2022

OCEAN FREIGHT UPDATES

Port congestion grows as China’s capital braces for Shanghai syndrome

splash247.com
Familiar scenes of supermarket stampedes are emerging from the Chinese capital as mass testing gets underway in Beijing, the latest mega city to face the tough wrath of the country’s dogged zero-Covid policy.
Port and hinterland snarl-ups across the world’s most populous nation are wreaking havoc for manufacturers and logisticians alike. Read more here. 

Hapag-Lloyd Fined by FMC after Levying ‘Wilful’ and ‘Erroneous’ D&D Charges

ciffa.com
German carrier Hapag-Lloyd has been ordered to pay $822,220 in civil penalties for 14 violations of the U.S. Shipping Act.
An FMC investigation found it incorrectly applied detention and demurrage (D&D) charges to 11 containers handled by California drayage firm Golden State Logistics (GSL).
The D&D charges levied to GSL amounted to $10,135, but the FMC’s Bureau of Enforcement (BOE), which Hapag-Lloyd had unsuccessfully claimed had no jurisdiction over the case, said the penalties were punitive in nature as the carrier had “knowingly and wilfully” applied the D&D charges despite GSL being unable to return the containers. Read more here.

TT Club hits out at ‘criminal’ shippers of lithium batteries

splash247.com
A leading transport insurer has hit out at the “regulatory mismatch” in the shipping of lithium batteries, classing some manufacturers of the dangerous cargo as “criminal”. UK-based TT Club has issued an update on the carriage of these batteries as the number of fires on boxships and roros linked to them grows. Read more here. 

CANADA BUSINESS – GOVERNMENT UPDATES

Vancouver’s Jammed Warehouses Cast Light on Rising Costs

ttnews.com
To understand why inflation is running so hot, look to Canada’s West Coast. Vancouver, the home of one of North America’s busiest ports, is bursting at the seams.
The vacancy rate for space in the city’s warehouses has fallen below 1%, according to data from real estate advisory Altus Group Ltd. Industrial rents are soaring and so are land values – if you can find any land to buy, that is. The average home is C$1.4 million, and developers are eager for new places to build.
It is so difficult for firms to find space that goods destined for Vancouver are sometimes brought in through the port and sent to Calgary, where they’re stored before being shipped back again. Read more here. 

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Beijing COVID outbreak prompts fear of Shanghai-style lockdown

abcnews.go.com
HONG KONG — A new COVID-19 outbreak in Beijing is raising fears that China’s capital could be sent into a hard lockdown, like the one in Shanghai that’s entering a fifth week.
Beijing residents are stocking up and clearing shelves, despite authorities telling residents there are enough supplies to go around. Read more here.