Newsletter – November 9, 2021

AIR FREIGHT UPDATES

Exceptionally high air freight prices ‘likely to climb further’

lloydsloadinglist.com
Already exceptionally high air freight prices are likely to climb further as supply chain congestion drives further ocean-to-air conversion for essential peak inventory, analysis indicates, analysis indicates.
Based on the latest air freight pricing figures from the Baltic Exchange’s Baltic air Index, logistics investment analyst Stifel highlighted that air freight rates in October remained “perched at elevated levels, well beyond those seen in 2020”. Hong Kong to North America and Shanghai Pudong to North America average prices increased 76% and 89%, year-over-year, respectively, with the former increasing 2% during the month while the latter fell 4%, sequentially. Read more here.

OCEAN FREIGHT UPDATES

Zim Kingston salvage plans under way as Danaos reports ‘stellar’ results

theloadstar.com
In the aftermath of the fire and cargo loss from the Zim Kingston, Canadian authorities are expected to use a barge crane to remove debris from damaged container cells, according to local sources.
The ship itself is said to be structurally sound, and the decision on when it will leave the area known as Constance Bank, near Victoria, will be taken by the master in consultation with local pilots. Read more here (login required).

US supply chain congestion set to continue well into 2022

lloydsloadinglist.com
US retailer representatives and logistics advisors expect supply chain congestion to continue well into 2022, as strong demand persists and ports struggle to clear backlogs of containers at the country’s main import gateways.
Imports at the nation’s congested container ports are expected to remain at near-record levels for the remainder of the year as retailers rush to move merchandise from docks to shelves in time to meet the expectations of holiday shoppers, according to the latest monthly Global Port Tracker report released yesterday by the National Retail Federation (NRF) and Hackett Associates. Read more here.

Container spot rates in free-fall

splash247.com
Container spot rates are falling – and are unlikely to see any noticeable edge up for the remainder of what has been a record-breaking 2021, multiple analysts polled by Splash have predicted.
Liner shipping is on course to smash profits in excess of $150bn this year, more than five times their previous best cumulative effort as rates soared to highs never seen before. Read more here.

Tacoma clamps down on long-stay containers with new charge

splash247.com
Husky Terminal & Stevedoring, which operates the Husky Terminal at the Port of Tacoma in Washington, has implemented a “long stay rehandling charge” payable by cargo owners on import containers that dwell more than 15 days at the terminal, replicating similar box lingering charges to those recently implemented in Southern California. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Letter from Bangladesh: truckers go back to work as government concedes

theloadstar.com
A countrywide three-and-a-half day strike by Bangladeshi truckers ended last night following discussions with the country’s home minister.
The truckers began the action on Friday after the government raised diesel prices by more than 21%, and while the government said it would not cut the price of fuel, it offered to help truckers raise their rates. Read more here (login required).

CANADA BUISINEESS – GOVERNMENT UPDATES

Buyers who spent thousands on sea containers from N.S. company likely scammed, say RCMP

ca.movies.yahoo.com
Two Ontario residents who shelled out thousands of dollars for shipping containers they never received from a company purportedly based in Cape Breton appear to be the victims of a scam, say Victoria County RCMP.
Cpl. Chris Marshall said the containers were purchased from a company called GCTMM Unlimited Logistics. The company’s website lists a property in Englishtown as its address, but officers visited the site and found nothing there. Read more here.

INTERNATIONAL USINESS – GOVERNMENT UPDATES

The fashion for near-shoring expands, with ‘microfactories’ a growing trend

theloadstar.com
Large fashion brands are turning their backs on Asia.
Italian fashion firm Benetton has moved more than 10% of its output from Bangladesh, Vietnam, China and India to European production locations this year, and more will follow.
By the end of next year Benetton aims to have halved production in Asia, and instead, will manufacture more in Croatia, Serbia, Turkey, Egypt and Tunisia. This will bring more control of the production process and transport costs, which have gone through the roof over the past year. Read more here (login required).