Newsletter: January 24, 2022

OCEAN FREIGHT UPDATES

Yantian restricts container entry to ease overflow

splash247.com
With containers overflowing in and out of its borders, the operators of Yantian terminal, the largest port facility in Shenzhen, have from today ruled that full containers can only be trucked in four days before vessels are due to berth.
Shenzhen, the world’s fourth largest container port, is suffering from severe congestion just ahead of the Lunar New Year holidays, exacerbated by recent Covid-19 outbreaks that have seen parts of the city forced into lockdown. Ships arriving at Yantian are currently having to wait around one week for a berth space. Read more here.  

GROUND AND RAIL FREIGHT UPDATES

CBP Releases Enforcement Details of January 22 Border Vaccination Mandate

cantruck.ca
U.S. Customs and Border Protection (CBP) has released enforcement details of the border vaccination mandate coming into effect at 12:00 am EST on January 22, indicating all Canadian drivers must carry paper or digital proof of vaccination documents for verbal attestation at primary, and possible random checks at secondary inspection when required. Read more here.

Truckers at ports of LA and Long Beach looking to unionise

splash247.com
The Teamsters union filed a request last week with the National Labor Relations Board to hold a unionisation vote for the 250 or so drivers at XPO Logistics Inc. who serve the ports of Los Angeles and Long Beach. Ultimately, the truckers hope to achieve employee status with the company. They say XPO misclassifies them as self-employed contractors, thereby denying them healthcare benefits and higher pay. Read more here.

Carriers hesitant to give any pricing power back to shippers

freightwaves.com
Tender volumes took a slight breather over the past week, largely due to the Martin Luther King Jr. Day holiday to kick off the week. Every year around MLK Day tender volumes suffer a slight dip, but not as extreme as other holidays.
Over the past week, the Outbound Tender Volume Index (OTVI) fell by 2.58% after the sharp rebound last week. OTVI has actually held up better during the MLK Day-affected week than the two previous years, falling 4.58% in 2021 and 3.68% in 2020. OTVI continues to outperform 2021 levels, currently up nearly 5% y/y. Read more here.

INTERNATIONAL  BUSINESS – GOVERNMENT UPDATES

Semiconductors expected to be in tight supply throughout 2022

supplychaindive.com Dive Brief:
Semiconductor producers don’t expect shortages to improve in the near term as soaring demand and a backlog of orders constrains supply.
Taiwan Semiconductor Manufacturing Company CEO C.C. Wei told investors Jan. 13 it expects “capacity to remain tight throughout 2022.” Demand for silicon-based computer chips has skyrocketed as businesses shift to 5G and high-performance computing, said Wei. Read more here.

Is 2022 the year of the retail reset? Deloitte thinks so
Breaking down the year ahead for retail supply chains and e-commerce

freightwaves.com
It’s a new year, but retailers face the same supply chain mess that they did in 2021. Freight and shipping volumes remain at record levels and rates are higher than they’ve ever been. But at the same time, over 1 million retail jobs remain unfilled, while consumers expect to buy and receive goods with more convenience than ever before. Read more here.