Newsletter – May 26, 2022

OCEAN FREIGHT UPDATES

Shanghai port congestion could pile on airfreight pressure

aircargonews.net
Covid lockdown measures in Shanghai are drawing to a close but a backlog of shipping containers at the Port of Shanghai could once again fuel airfreight congestion and demand.
In its May 24 airfreight update for North China, Flexport said that businesses are reopening after Covid curtailment measures forced them to close, though it noted: “Production is still recovering at a slower pace as there are still some prevention and control requirements in place.” Read more here.

AmericasContainersPorts and Logistics

Maersk warns that LA, Long Beach ports may implement long-delayed container dwell fee
splah247.com
Maersk said this week that it foresees the ports of Los Angeles and Long Beach soon implementing the container dwell fee, announced in October and since delayed week after week, as the ports continue to tackle congestion. The company said in a rate announcement that the likelihood the fee will be implemented “has risen significantly this month.” Read more here.

Containership orderbook equivalent to the extent fleets of Cosco, Hapag-Lloyd and Evergreen

splash247.com
More statistics relating to today’s record containership orderbook are pouring in.
According to Alphaliner, there are now just under 900 ships totalling 6.8m teu due to be built at yards around the world.
According to Alphaliner, the pipeline of container newbuildings is bigger than the combined existing fleets of Cosco, Hapag-Lloyd and Evergreen, the world’s fourth, fifth and sixth largest liners, respectively. Read more here.

GROUND AND RAIL FREIGHT UPDATES

CN: New Yard for Containers to Help Reduce Congestion in Toronto

ciffa.com
CN Brampton and Malport continue to have a high volume of import containers on the ground. This is causing additional lifts and therefore higher wait times inside the terminal.
To help reduce congestion, as per Tariff 9100, CN has been shuttling loaded import containers that are Customs cleared, not temperature controlled and without an appointment for pickup to CN-MISC. Paul’s Transport yard in Mississauga will also be used for this purpose.
To confirm the location of your containers, go to www.cn.ca. System notices will indicate locations as follows:
•    Billed to MISC: Indicates that the container is at MISC or will be moved to MISC.
•    Billed to TORCON: Indicates the container is at Paul’s Transport Facility (1555 Matheson Blvd, Mississauga) or will be moved there.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Asia manufacturers say the pandemic-driven trade boom is fading

ajot.com
Clothing companies and gadget makers are among manufacturers across Asia seeing early signs of cooling demand from their global customers as soaring inflation takes hold.
Bumper exports from Asia, especially China, were a major dynamo in the global economy’s recovery from the pandemic. Recent data suggest that’s fading due to supply blockages linked to China’s aggressive Covid lockdowns and Russia’s invasion of Ukraine. Well-stocked inventories have been another headwind. Read more here.

Ban on Goods Made in Xinjiang, China, Takes Effect in One Month

strtrade.com
The U.S. will ban imports of all goods made in whole or in part from any good from the Xinjiang Uyghur Autonomous Region in China effective June 21. Companies should be finalizing efforts to ensure their supply chains do not include such goods.
ST&R will be conducting a webinar on this ban, the underlying law, and their impacts on importers. Click here to register or for more information. Read more here.