Newsletter – May 10, 2021

OCEAN FREIGHT UPDATES

Liner contract rates set new records

splash247.com
Contract rates in container shipping are soaring to record levels. The contract rates published on the China Containerised Freight Index (CCFI) last Friday hit 2,074 points. Putting this in context, the combined index peaked at 2,072 points on February 19 following Chinese New Year. The CCFI is defined as being equal to index 1,000 at the beginning of 1998. The previous record was set in May 2012 at an index level of 1,335. Aside from that, the CCFI has only been above index 1,250 at one other time: in the first week of October 2004. Read more here.

Suez Canal Authority slashes Ever Given compensation claims by $300m

splash247.com
The Suez Canal Authority has slashed its Ever Given compensation claims by nearly a third. The Egyptian body is now seeking $600m rather than $916m as negotiations stretch into another week to get the 400 m long vessel freed and able to get to its European destinations, seven weeks after it grounded, blocking the key waterway for six days. Read more here.

FMC commissioner to examine China’s role in container shortage

splash247.com
The United States is beginning to question whether China is to blame for the box shortages plaguing global supply chains this year.
At a virtual meeting hosted by the Intermodal Association of North America (IANA) last week, Federal Maritime Commissioner Carl Bentzel said he is exploring how China is involved in the container shortage that has been an issue for many months at US ports. Bentzel said that he believes that China may be manipulating the market to control the availability of containers. Read more here.

Box ship captains now told ‘put your foot down’, to meet berthing windows

theloadstar.com
A new survey by VesselsValue has found a “significant increase” in the average speed of containerships.
The maritime valuation and market intelligence service said average laden containership speeds had increased by 5.5% since last June to 14.76 knots, and by 8.5% in the larger sectors. Read more here (login required).

Bangladesh plans to double number of off-docks at ‘strained’ Chittagong

theloadstar.com
The Bangladeshi government is to double the number of off-dock depots in Chittagong to handle growing numbers of export and import containers and reduce the pressure on the port yard.
The existing 19 inland container depots are not sufficient for current volumes and are restricting future trade growth and a recent meeting between the port authority, government bodies and port users ended in a decision to set up more depots as quickly as possible. Read more here (login required).

CANADA BUSINESS – GOVERNMENT UPDATES

Canadian lumber producers to expand US mills amid home boom

ajot.com
North American lumber companies plan to ramp up production by expanding existing mills as strong home construction fuels the need for more wood.
West Fraser Timber Co., the world’s biggest lumber producer, plans to expand capacity at five of its lumber mills in the U.S. South. Interfor Corp. is rebuilding a sawmill in Georgia that is on track for completion by the end of 2021. Both companies expect home-building and renovation demand to continue supporting strong prices for wood products in the near future. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

The logistical cost of Peloton’s recall

freightwaves.com
What happened? More than two weeks after declining the Consumer Product Safety Commission’s request to recall its treadmills, Peloton announced Wednesday the company is voluntarily recalling all its Tread and Tread+ units in the U.S. The announcement marked a major reversal of Peloton’s initial reaction and comes after more than 38 reports of injuries involving Tread+ machines, including one fatally injured child, according to the CPSC. Read more here (login required).