Newsletter – September 10, 2021

OCEAN FREIGHT UPDATES

CMA CGM startles rivals by vowing to stop spot rate increases for coming five months

splash247.com
Previous container shipping cycles tended to end in vicious rate-cutting grabs for market share. In 2021, the most extraordinarily profitable year in liner history, rate topping rather than cutting is happening.
France’s CMA CGM shocked fellow liners yesterday by publicly announcing it will stop all spot rate increases through to the beginning of February. The liner, led by Rodolphe Saade (pictured with the French president last week), said the preemptive move was designed to prioritise its long-term relationship with customers in the face of an “unprecedented situation” in the shipping industry. Read more here.

Number of ships waiting for berth space outside LA and Long Beach set to top 50

splash247.com
Ships are being forced to drift outside Los Angeles and Long Beach as all anchorages are chock-a-block with the total number of boxships waiting for berth spaces to open up at America’s top two gateways set to hit a new all-time high of 50 ships today.
As of last night, the Marine Exchange of Southern California registered a record 49 boxships waiting for berth space in and around San Pedro Bay. More than 15 ships are due to arrive by the end of the weekend. Read more here.

Walmart, Amazon and Cargill among 24-member new shipper advisory group in the US

splash247.com
Some of the biggest shipper names in the world are on the newly formed National Shipper Advisory Committee created by the Federal Maritime Commission (FMC) in the US, one of many measures American regulators and politicians are taking to try and tackle this year’s extreme supply chain crunch.
The committee is comprised of 24 members, evenly divided between those who export cargo from and those who import cargo to the US. It will advise the FMC on policies relating to the competitiveness, reliability, integrity, and fairness of the international ocean freight delivery system. Executives from the likes of Amazon, Ikea, Walmart, Cargill and Louis Dreyfus are on the advisory group. Read more here.

Global regulators debate unified action to alleviate supply chains

theloadstar.com
Regulators from Asia, the US and Europe have held the fifth biennial meeting to discuss the global competition issues concerning the maritime industry, including issues that have occurred since the start of the pandemic in 2020.
Discussions for this year’s event focused on the service disruptions in ocean supply chains, including the identification of obstructions to the free flow of cargo, on the ocean and inland connections. Read more here.

Halifax adds direct connection to India

insidelogistics.ca
The Port of Halifax will receive the first direct call between the West Coast of India and a Canadian port when the maiden call of the MSC Indus 2 Service arrives early next month. The service will berth at the South End Container Terminal operated by PSA Halifax.
The first sailing from Mundra commenced on September 7, 2021, with MSC Stella, voyage IX136A. The port rotation will be as follows: Mundra – Nhava Sheva – Gioia Tauro – Sines – Halifax – Norfolk – Baltimore – Miami – Freeport – Mundra. Read more here.

GROUND FREIGHT UPDATES

US trucking industry could struggle with new Covid vaccination requirements

theloadstar.com
The White House’s new rules – that employers with more than 100 staff must ensure they are all vaccinated or given weekly Covid tests – could cause greater shortages in the US trucking industry. As Craig Fuller, founder of trucking-centred FreightWaves, noted on social media: “You think the trucking capacity situation is bad now? Just wait until this vax mandate goes into effect. One large carrier suggested the number was north of 60% that are unvaxed. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Retailers’ inventories suggest restocking long way from finished

freightwaves.com
Inventory levels increased for the nation’s largest retailers during the fiscal second quarter that ended July 31. However, when looking at merchandise positions relative to sales, many big-box chains are operating at a significant supply deficit compared to two years ago.
Elevated consumer demand and bottlenecks throughout the supply chain suggest it may be a while before the group can rebuild stockpiles to historical levels (relative to sales), meaning the dynamics of this freight cycle could potentially linger well into next year. Read more here.