Newsletter – November 2, 2021

AIR FREIGHT UPDATES

New cargo customs requirements add to the strain at Frankfurt

aircargonews.net
Cargo shipments at Frankfurt Main Airport are continuing to face delays as a result of high demand and new customs procedures for imports.
The latest figures from Europe’s busiest cargo hub show that demand at the airport continues to surge – in September cargo volumes increased by 13.4% year on year to 188,177 metric tons while compared to 2019 cargo volumes for the month are up by 7.7%. Read more here.

OCEAN FREIGHT UPDATES

SoCal ports could fine carriers for tardy containers by Nov. 15

freightwaves.com
Port authorities in Los Angeles and Long Beach plan to start assessing and collecting late fees on loaded import containers that remain on the docks for extended periods as soon as Nov. 15. The information was disclosed in agendas for emergency meetings of the respective harbor commissions on Friday.
The boards will vote on plans submitted by port staff to charge ocean carriers $100 per day, increasing in $100 increments per container per day, for containers scheduled to move locally by truck that are left for nine days or more, and for containers scheduled to move by intermodal rail that dwell for six days or more. The levies are effective Nov. 1.  Read more here.

Traffic Backs Up along the Yangtze as Pilots Are Required to Quarantine

splash.com
Traffic along the Yangtze, China’s longest river and a massive source of cargoes both domestically and for export, is worsening.
According to analysts at Singapore’s Eastport Research, traffic has been backing up at ports near and along the Yangtze River over the past month, with a severe shortage of pilots slowing vessel movements. The average time spent per vessel in Zhangjiagang and Shanghai increased by almost a day in October.
Specialized river pilots are now required to be quarantined after completing their duties, which has led to pilot shortages. Read more here.

FMC waits for details on California port surcharges

freightwaves.com
The surprise decision by the ports of Los Angeles and Long Beach this week to impose hefty surcharges on ocean carriers that take too long removing containers from overcrowded terminals has raised more questions than answers. Freight industry professionals — and the Federal Maritime Commission — want to know where the twin ports are getting the authority  to levy the surcharges.
Port officials announced the fees on Monday and the two harbor commissions will vote to approve them on Friday, but the FMC has yet to receive any documents describing the plan.  Read more here.

Major ocean carriers sailing towards astonishing $200bn profit this year

theloadstar.com
With stock market-listed ocean carriers reporting even better-than-expected profits for the third quarter, their executive boards are being forced yet again to upgrade full-year earnings forecasts.
A third of the way through the final quarter, carrier profits are trending even stronger, as higher contract rates begin to filter through to voyage results and combine with the sky-high spot rates lines are enjoying across many trades. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

China Factory Activity Slumps Further on Energy Woes

industryweek.com
Factory activity in China plunged more than expected in October, official data showed Sunday, suggesting the industrial sector continued struggling as it grappled with tight power supply and surging raw material costs.
The key Purchasing Managers’ Index (PMI) — a gauge of manufacturing activity in the world’s second-largest economy — fell to 49.2 this month, down from 49.6 in September, said the National Bureau of Statistics (NBS). Read more here.

Cybercriminals selling access to shipping, logistics firm networks, report warns

freightwaves.com
Cybercriminals have attempted to sell network access to multiple transportation, logistics and shipping companies in recent months, highlighting the risk of devastating ransomware attacks in the supply chain, a new report warns. Read more here.