Newsletter – August 9, 2021

OCEAN FREIGHT UPDATES

Ominous signs for supply chains from new Covid lockdowns in Vietnam and China

theloadstar.com
The lockdown in South Vietnam has caused a 100,000 teu pile-up at Ho Chi Minh City’s Cat Lai port.
And in China, ports at Shanghai and Ningbo are reportedly also facing additional congestion from new Covid restrictions.
According to Saigon Newport (SNP), yard density at Cat Lai is currently around 85%, with 106,700 teu clogging the terminal, although 2,000 containers were cleared a few days ago. Read more here.

Evergreen snaps up eight containerships for $94m

splash247.com
Taiwan’s Evergreen Marine has acquired eight containerships in a deal worth around $94.1m. The liner giant is adding seven 1,600 teu vessels and one 7000 teu unit through its two subsidiaries, Evergreen Hong Kong and Evergreen Asia respectively. Read more here.

Ningbo and Shanghai, the world’s two largest ports, experience unprecedented congestion

splash247.com
The world’s two largest ports are experiencing unprecedented volumes of tankers, bulk carriers and containerships back up into the East China Sea as a combination of renewed Covid cases, fierce weather and strong US demand creates further supply chain havoc.
Ningbo-Zhoushan and Shanghai to the north handled 1.17bn and 510m tons in 2020, marking them out once again as the world’s top two ports. In container terms, they’re also on the podium – Shanghai ranked number one in the world with Ningbo-Zhoushan in third place. Read more here.

Congestion takes hold again with supply chain delays spread across the US

theloadstar.com
Growing congestion fears in Asia are being matched by an apparent resurgence of delays at US west coast ports.
Today’s AIS data shows around 30 ships at anchor in San Pedro Bay, offshore from Los Angeles and Long Beach ports, with Maersk warning customers of severe delays.
Maersk told customers the situation in Southern California had “deteriorated”, with the number of vessels at anchorage doubling over the last few weeks. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Deal comes after more than 36 hours of mediated talks, work-to-rule campaign

cbc.ca
Canada’s border officers reached a new tentative agreement with the federal government late Friday after a daylong work-to-rule campaign left long lines of semi-trailers and passenger vehicles idling for hours at some of the country’s busiest international gateways.
The deal — announced late Friday after more than 36 straight hours of mediated talks — came with just days to spare before U.S. citizens and permanent residents are expected to begin queuing up for their first chance to get into Canada since before the start of the COVID-19 pandemic. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Global demand isn’t booming. So why are shipping rates this high?

freightwaves.com
There is no COVID-era surge in global cargo demand. There’s a lengthy albeit temporary spike in congestion compounded by a localized, stimulus-and-savings-driven demand boom in America.
That explanation for skyrocketing rates gained more traction Friday when liner giant Maersk released details of its quarterly performance.
Maersk — which pre-reported record Q2 2021 results on Monday — estimated that global container shipping demand was up only 2.7% in the second quarter versus the same period two years ago, prior to the pandemic. Read more here.

Business group pushing for U.S. northern border

insidelogistics.ca
A group of U.S. and Canadian business leaders is pushing Congress for a plan to ease restrictions at the land border with Canada.
The group, led by the North American Strategy for Competitiveness, wants senior congressional leaders to demand a detailed strat gy from the Department of Homeland Security. Read more here.

Borderlands: Canada again beats Mexico, remains top US trade partner

freightwaves.com
Canada was the top trading partner of the United States in June, followed by Mexico and China, according to data released Thursday from the U.S. Census Bureau.
It was the second-consecutive month that Canada, Mexico and China were Nos. 1, 2 and 3, respectively.
The U.S. trade deficit increased 6.6% to a record $75.7 billion in June, as imports increased more than exports. Read more here.