Newsletter – March 20, 2024

THE Alliance goes large on the transpacific to reassure shippers
theloadstar.com
To reassure shippers that its transpacific coverage will remain strong, THE Alliance (Hapag-Lloyd, ONE, HMM and Yang Ming) will reinstate two transpacific services after suspending the strings for almost half a year.
On 15 April, THE Alliance will restore the Asia-US east coast 4 (EC4/SUEZ1) service that was withdrawn in November for the winter lull season and will return with a new rotation: Kaohsiung, Xiamen, Yantian, Cai Mep, Singapore, Norfolk, Savannah, Charleston, New York, Singapore, and Kaohsiung. Read more here (login required).

Ports of LA and Long Beach busier this year and eyeing an early peak season
theloadstar.com
Container imports through the US west coast San Pedro Bay ports of Los Angeles and Long Beach are booming – a trend that looks set to continue, with some peak season volumes from Asia expected to arrive earlier than usual this year.
Moreover, transpacific shippers are hedging their bets on the outcome of the US east coast new labour contract negotiations by increasing the percentage of import cargo they intend to move via west coast ports. Read more here (login required)

East coast port strike threat prompts shippers to consider heading west instead
theloadstar.com
Cargo owners have been advised to make contingency plans for a strike at US east and Gulf coast ports that could hit traffic flows as early as 1 October, right in the peak shipping season.
The six-year labour contact between the International Longshoremen Association (ILA) and United States Maritime Alliance (USMX), covering ports on the eastern US coastline, is set to expire on 30 September. Read more here (login required).

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INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Consumer products and logistics firms struggling with digitisation
theloadstar.com
Companies in the consumer products, retail and logistics arena are struggling to make digitisation investments pay, and lag other sectors, putting them behind in the quest for AI-driven solutions.
A study by Forrester Research found that progress appears to be further threatened by cost-cutting efforts targeting supply chains. Read more here (login required).

Key analysis sees Red Sea shipping diversions starting to boost oil demand
freightwaves.com
Diverting shipping away from the Red Sea and Suez Canal and around the Cape of Good Hope south of Africa is beginning to impact global demand for petroleum, and it shows in the monthly report by the International Energy Agency.
The IEA’s report for March, released Thursday, sees increased demand for bunker fuel – the fuel used to power ships – because the diversions prompted by Houthi attacks on cargo vessels are now having a measurable impact on demand. That factor, combined with what the IEA said is solid demand growth from the U.S., led the agency to increase its closely watched supply/demand estimate for 2024 to reflect almost 120,000 barrels per day more demand than it forecast just one month ago.  Read more here.