Newsletter – August 11, 2023

Port of Halifax Operational Update

ciffa.com
Following the reopening of the CN rail line on July 28, CN rail car supply to the port has been strong. Since last week’s update, rail car production was approximately 66,000 feet. Vessel operations remain unaffected and continue to arrive at Halifax with no berthing delays.
Fairview Cove Terminal experienced some vessel bunching late last week, and terminal gate closures on August 7 (due to the civic holiday) affected rail operations on the terminal. This week, PSA Halifax is focusing on intermodal operations. CN has sufficient rail car availability. Both parties are expecting strong momentum on intermodal production in coming days.

MSC rotation change on Far East to Pacific Northwest service

ajot.com
MSC has confirmed the new rotation of its Chinook Service as from week 34.
The new rotation will be effective from the sailing of vessel MSC ADONIS, voyage number UK334A, beginning in Yantian on August 26, 2023. Read more here.

Sunken tugboat recovered from Suez Canal

splash247.com
The Suez Canal Authority has successfully recovered the sunken tugboat Fahd which sank following a collision with an LPG carrier.
The tugboat sank in the Suez Canal on Saturday after colliding with the LPG carrier Chinagas Legend resulting in one fatality. Read more here.

July import volumes continue to mirror pre-COVID ‘normal’

freightwaves.com
“Imports still plunging, down 14% year on year” sounds alarming for the U.S. economy. But July’s percentage drop is an artifact of the COVID-driven import boom, a one-off event that ended in late 2022 that is no longer news.
“Imports unchanged versus pre-pandemic levels” is a less dramatic headline with no double digits, ominous undertones or “plunging” involved. Yet that is the real news: The volume of containerized imports to the U.S. is normal and healthy. There is no sign yet in the import data of consumer weakness or an impending recession. Read more here. 

HMM hit by ‘intensified’ imbalance between supply and demand

freightwaves.com
South Korean ocean carrier HMM’s second-quarter net profit plunged 89% year over year.
HMM provides little color in its earnings releases and reports in South Korean won. It reported Thursday that Q2 net profit was KRW 313 billion ($238 million), compared to KRW 2.9 trillion ($2.2 billion) in the second quarter of 2022. Read more here. 

Hapag Lloyd implements new peak season surcharge from East Asia to North America

container-news.com
Hapag Lloyd has announced a new Peak Season Surcharge (PSS) from East Asia, namely Japan, Republic of Korea, Taiwan (PRC), Hong Kong (PRC), China (PRC), Macau (PRC), Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia and the Philippines to the United States and Canada. Read more here. 

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INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

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Fashion execs plan more reductions in sourcing from China in 2023: report

supplychaindive.com
Dive Brief:
Nearly 80% of surveyed fashion executives plan to reduce their sourcing from China over the next two years, according to the latest industry benchmarking survey from the U.S. Fashion Industry Association.
A record high of 15% of executives reported that their companies are planning to “strongly decrease” sourcing from China. And over 40% said they sourced less than 10% of their apparel products from China. That share represents a 10 percentage point jump from last year and 20 percentage point increase from 2019. Read more here.