Week 1 Freight Updates

COVID continues to affect the supply chain, thanks to lockdowns, outbreaks, and quarantines. The largest port in the world is in the city of Ningbo, China, which is facing another outbreak. Increased testing amongst the locals means further delays for truckers and at container terminals.

In related news, the start of 2022 finds the shipping industry still looking for answers to the ongoing backlogs at US ports. And since the new year is expected to see the same increased consumer demand paired with no significant increase in vessel capacity, not much is likely to change. So, with consumers still spending their discretionary income on merchandise (as opposed to travel and services), it’s difficult to say when the backlog will be cleared. From the ports’ perspectives, the only good news is there’s no expectation that vessel capacity will be increasing in 2022—at least on the trans-Pacific trades.

In line with trying to expedite the movement of containers, the Port of Los Angeles announced its plans to charge carriers a surcharge for empty containers that remain stored at the terminal for more than nine days. Charges are incremental—$100 per empty that exceeds its nine-day limit, plus $100 per container, per day, until the container leaves. If the Los Angeles Harbor Commission approves, the plan will go into effect on Jan. 30.

Thanks to a new bill signed in late December, imports from China’s Xinjiang region are banned. Many goods from the region are said to be produced under forced labor in detention camps made up of Uyghurs and other Muslim groups. The US saw about $9 billion of cotton and $10 million of tomato imported last year, just two of the most popular imports from the region.

Finally, let’s take a walk down supply chain memory lane. COVID is not the first time global supply chains have been impacted by the virus. The point is, this isn’t the first time carriers have had to pivot because of disease threatening the health and welfare of our supply chain.

For the rest of these stories, check out the article highlights and links below.

Ningbo lockdown measures tightened

The city of Ningbo, home to the world’s largest port, reported 10 Covid-19 cases over the weekend at a clothing factory, sparking increased testing of workers across much of the city adding to delays among truck workers heading to the metropolis’s busy container terminals.

Outlook 2022: No trans-Pacific supply chain relief anticipated in first half 2022

With economic indicators pointing to sustained US consumer goods demand in 2022, and no new vessel capacity of any magnitude scheduled to enter the trans-Pacific, the supply/demand dynamics that were present all last year are projected to continue well into the new year in the largest US trade lane.

LA port pressures ocean carriers to remove empty containers faster

In its latest congestion mitigation effort, the Port of Los Angeles announced Thursday it plans to start charging ocean carriers a hefty surcharge next month for empty containers that are stored on marine terminals for nine days or longer.

Biden signs bill banning goods from China's Xinjiang over forced labor

WASHINGTON, Dec 23 (Reuters) – U.S. President Joe Biden on Thursday signed into law legislation that bans imports from China’s Xinjiang region over concerns about forced labor, the White House said, provoking an angry Chinese condemnation.

5 years of supply chain disruptions and the lessons learned

Five years ago, Zika was haunting supply chain managers. It was an emerging disease, and a threat to the world. China had just announced it would not accept any imports unless they were certified mosquito-free.

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