Newsletter – September 8, 2021

OCEAN FREIGHT UPDATES

More logistics players guarantee space by chartering their own box ships

theloadstar.com
Entrepreneurial logistics players are turning away from the highly congested transpacific market to cash in on the equally buoyant but less-congested Asia to Europe trade.  Alphaliner today said it had taken note of two new carriers on the route that had chartered small containerships to carry their own cargo and tap the lucrative spot market. Read more here (login required).

Evergreen splashes up to $1.1bn on 24 feeder boxships at Huangpu Wenchong

splash247.com
Taiwan’s Evergreen Marine has placed an order at CSSC Huangpu Wenchong Shipbuilding for the construction of 24 feeder containerships in a deal worth up to $1.1bn.
The deal includes ships of three different sizes, 11 3,000 teu, 11 2,300 teu and a pair of 1,800 teu units with a price tag between $28m and $51m. Read more here.

Boxship charter rates hit unprecedented $200,000 a day

splash247.com
$200,000 a day for a boxship charter; $125m for a six-year-old, 6,865 teu vessel – the scorching container shipping sector has entered supernova territory.
The records continue to tumble in box shipping’s most extraordinarily profitable year, pushing asset prices further skyward.
S&P broking sources this week suggest a six-year-old 6,865 teu ship has been put up for sale with a price tag of $125m and a February 2022 delivery. Read more here.

GROUND AND RAIL FREIGHT UPDATES

CN Launches Express Pass App

ciffa.com
CN said it is launching an enhanced mobile application for use by truckers when accessing CN’s intermodal terminals. This new application, called CN Express Pass, will eventually replace the current ModalPass app. The first terminal to use CN Express Pass will be Malport, tentatively planned for Fall 2021, with roll out to other CN terminals thereafter.
The upgrades on the CN Express Pass application will prepopulate known information, reducing the input required from the trucker. Pre-validating gate information allows the trucker to confirm their information before coming to the terminal, thereby saving time at the gate kiosk and avoiding the need to spend time in the Driver Assist Booth, CN said.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Transportation capacity dips further, prices keep surging

freightwaves.com
Transportation capacity remains on a downward trajectory while prices and utilization are “increasing at an increasing rate,” according to a supply chain survey released Tuesday.
The transportation capacity subindex of the Logistics Managers’ Index (LMI) increased 560 basis points to 40.5% in August, meaning available transportation capacity was still shrinking during the month, just at a slower rate.
The LMI is a diffusion index wherein a reading above 50% indicates expansion and a reading below 50% indicates contraction. Read more here.

Employment report: Surge in hiring at warehouses and for courier drivers

freightwaves.com
The help wanted signs are up at warehouses and for gig drivers, and for August at least, it looks like they got solid responses.
In the Bureau of Labor Statistics report released Friday, covering August data, the categories of warehouses and storage and couriers and messengers each rose by more than 20,000 jobs from July on a seasonally adjusted basis.  Read more here.

IKEA Goes From Flat-Packed Boxes To Steel Containers In Bid To Ease Shipping Crunch

ciffa.com
IKEA Goes From Flat-Packed Boxes To Steel Containers In Bid To Ease Shipping Crunch
IKEA has bought its own containers and become the latest major retailer to reveal it is chartering in boxships amid today’s uniquely tight, pricey ocean shipping space. Read more here.