Newsletter – February 29, 2024

Liners on the vertical integration prowl
theloadstar.com
Travellers to India are often entertained to hear a strange oxymoronic phrase that is a conjunction of words seemingly at odds with each other, and yet encapsulates a very particular meaning: “same same, but different”.
As a shipping journalist for 20-plus years, I am reminded of this when we look at industry recessions, which share odd, but recurring, characteristics – one of which is that when the box volumes thin out, container lines go on the hunt for other cargo types. Read more here (login required).

CN analysis: Freight rates on major Indian trades see downward corrections after January highs
container-news.com
After spiking dramatically amid the Red Sea crisis-linked shipping disruption, container freight rates seen on trades out of India have held firm or even declined in some cases in February, month-on-month, according to the latest market analysis by Container News.
On the westbound India-Europe trade, average short-term contract rates for 20-foot container bookings from West India [Jawaharlal Nehru Port (JNPT)/Nhava Sheva or Mundra Port] to Felixstowe/London Gateway (UK) have been steady at US$3,600 per 20-foot container, while 40-foot container loads have seen rates increase to US$3,900 per FEU, from US$3,650 at the end of January. Read more here.

CMA CGM resumes Red Sea transits
container-news.com
French shipping company CMA CGM Group has announced it will resume Red Sea transits on a case-by-case basis.
The Marseille-based carrier said, “We have reevaluated the situation in the Southern Area of the Red Sea and the evolving conditions allow us to resume transit on a case-by-case basis.” Read more here.

LA’s Seroka: Biden’s $20 billion port cyber initiative is “wake up call”
ajot.com
President Biden’s executive order calling for a $20 billion cyber security investment in U.S. ports is “a wakeup call for all of us in the port and supply chain industry,” according to Eugene Seroka, Executive Director, Port of Los Angeles.
On February 20th, the Biden administration announced an executive order…read more here.

Port of Long Beach cargo volumes rise 18% YoY in January
supplychaindive.com
Cargo volumes at the Port of Long Beach reached 674,015 total TEUs in January, reflecting about an 18% increase year over year as retailers pushed to fill warehouse ahead of the Lunar New Year holiday.
“Retailers stocked their warehouses in January ahead of the slower import activity we typically see during Lunar New Year celebrations,” Port of Long Beach CEO Mario Cordero said in a Feb. 14 press release. During the 10-day holiday, factory closures lead shippers to replenish inventories and move goods early. Read more here.

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GROUND FREIGHT UPDATES

Are drayage truckers getting off easy under FMC’s new billing rule?
freightwaves.com
Federal regulators have relieved drayage truckers from late-fee bills associated with picking up and returning cargo containers, while inadvertently — and unfairly — shifting the burden onto shippers, a major shipper group contends.
The Federal Maritime Commission’s rule on demurrage and detention, issued last week, imposed new billing standards on ocean carriers and terminal operators in an effort to crack down on abusive container late fees, often to truckers as well as shippers. Read more here.