Newsletter – May 31, 2021

OCEAN FREIGHT UPDATES

Container line schedules take another hit as port congestion in China spreads

theloadstar.com
Yantian International Container Terminal (YICT) has extended its export suspension until Monday, as port congestion worsens throughout China.
The Shenzhen gateway was due to resume accepting export containers today, following a two-day suspension starting Tuesday evening.
However, according to an update from Maersk, it was extended yesterday for a further 72 hours, with container gate-in times reduced from four to three days of a vessel’s estimated time of arrival (ETA), from 31 May until 6 June. Read more here.

Ever Given compensation battle stretches into June

splash247.com
A court hearing was postponed on Saturday as the two sides in the ongoing Ever Given saga in Egypt edge closer to resolving their differences on the scale of compensation to get the giant ship released.
The 20,388 teu vessel has been under arrest in Egypt for the last two months as the Suez Canal Authority and owner Shoei Kisen battle out compensation claims. Read more here.

Shipyards struggle with soaring steel prices

splash247.com
Inflation being reported around the world is set to have a large impact on newbuild prices as shipyards factor in soaring costs for steel.
A chart prepared by Evercore ISI (see below) comparing the price of Chinese rebar prices and newbuild price developments for VLCCs, capesizes and large containerships shows that while there is a correlation, the magnitude of vessel values lags. Read more here (login required).

Viewpoint: The causes of port congestion — and tactics to improve efficiency

freightwaves.com
It was a rough start to the year for shippers and carriers around the world.
While the freeing of the Ever Given container ship in the Suez Canal in March caused the biggest headache in port congestion, the Ports of Los Angeles and Long Beach — the two biggest gateways for U.S. imports — are not far behind. Both ports hit unusual levels of congestion in recent months, with nearly 40 cargo vessels anchoring for an average of 7.5 days, awaiting berths to safely and securely unload and load cargo. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Canada’s Flair Airlines Takes Its First Boeing 737 MAX

simpleflying.com
On January 27th, 2021, Canadian ultra-low-cost carrier Flair Airlines announced that it would be ordering 13 new Boeing 737 MAX 8 jets. The airline took delivery of the first of these this past Wednesday, the start of an initial expansion to a total fleet size of 16 aircraft.
Positioning itself for growth once pandemic-restrictions ease in Canada, Flair Airlines took delivery of its first MAX aircraft on Wednesday. According to Airways Mag, this first aircraft is registered C-FLEJ. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Coronavirus surge in India hits raw materials, manufacturing across multiple industries

supplychaindive.com
A wave of coronavirus cases in India has impacted manufacturing and production across multiple industries and regions, according to comments from executives and analysts.

Williams-Sonoma CEO Laura Alber called the situation “heartbreaking,” while noting the company’s production in the region has been impacted. Read more here.