Newsletter – June 9, 2023

OCEAN FREIGHT UPDATES

Shipping will have to contend with the onset of El Niño weather phenomenon

splash247.com
As widely expected the onset of the El Niño weather phenomenon was officially confirmed yesterday, news that will have significant ramifications for the global shipping industry over the following 12 months.
“El Niño conditions are present and are expected to gradually strengthen into the Northern Hemisphere winter,” the Climate Prediction Center at the National Oceanic and Atmospheric Administration in the US said in an advisory published Thursday, adding that there was an 84% chance that this El Niño will be stronger than normal. Read more here.

Tankers face ‘stuffy’ situation outside LA as US port woes continue

splash247.com
With vessel tracking teams working overtime this week to provide clients with information about ships bound for the North American west coast amid a period of labour strife, the fluid situation along the coastline is changing by the hour.
According to Adil Ashiq, who heads up operations for MarineTraffic in North America, Friday will see a considerable number of containerships call at crowded Oakland, while the ports of Seattle and Tacoma are also becoming noticeably busier. Read more here.

Maersk hit with $9.8m FMC fine

splash247.com
In the largest fine dished out since its powers were expanded last summer, a judge with Washington DC’s Federal Maritime Commission (FMC) hit Maersk subsidiary Hamburg Süd with a $9.8m penalty this week in a high-profile case that had been picked up last year by the mainstream press.
OJ Commerce (OJC), a Florida-based furniture importer, filed a case with the FMC originally in 2021, and then again last year, hitting out at alleged price gouging, collusion and contract breaches. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Record-High Export Volumes Push Canada Trade Surplus Wider

bnnbloomberg.ca
Canada’s merchandise trade balance in April widened by more than expected as export volumes reached an all-time high, surpassing their pre-pandemic levels.
(Bloomberg) — The surplus rose to C$1.9 billion, from a downwardly revised C$231 million in March, with exports of gold, crude oil and vehicles increasing the most, Statistics Canada reported Wednesday in Ottawa. Economists were anticipating exports to exceed imports by C$550 million in April. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Nearshoring Raises Cargo Theft Concerns

ttnews.com
The increasing interest in nearshoring poses unique security considerations, including a higher likelihood of cargo thefts.
Nearshoring involves companies moving offshore operations to neighboring countries. The U.S. has seen increased interest in the process since the onset of the coronavirus pandemic, and Mexico has been a main focus of those efforts. Read more here.