As fuel prices surge globally, it shouldn’t come as a surprise that MSC announced that as of April 15, 2022, they will be calculating their Global Fuel Surcharge biweekly instead of monthly on Asia trades. There’s a trend forming with carriers which means customers should prepare for higher fees.
And just when you think the chaos caused by COVID is behind us, Shenzhen locked down again on Sunday, impacting factories and the global supply chain. The city is dealing with a spike in cases thanks to one of the newer Omicron variants. Tech giants such as Apple are already impacted, with others in the industry expected to face disruption in the coming week, since Shenzhen is a major tech hub in China. If history repeats itself, this shutdown could cause another backlog that may take months to ease.
Moving farther north, the political turmoil over the Russia-Ukraine war continues to further impact supply chains. The Russian Navy has closed shipping through the Sea of Azov, leading to a backlog of ships wanting to pass through the Kerch Strait. And the International Chamber of Shipping reports that ships are being hit with missiles and seafarers of all nationalities are being injured, killed, or trapped on their ships. The Ukrainian ports of Odessa and Mariupol are either completely closed, under attack, or damaged, and container movement is at a standstill.
Air cargo in the area is also facing challenges with airspace over Ukraine shut down, sanctions keeping many airlines out of Russian airspace, and the rising costs of fuel.
Not surprisingly, the industry continues to pull out of Russia. According to an IACS press release, “. . . under the terms of its charter, which requires agreement from 75% or more of its members, IACS council has therefore adopted a resolution that the Russian Maritime Register of Shipping’s membership of IACS is withdrawn with immediate effect.” Additionally, Maersk has decided to sell its stake in Global Ports Investments, a Russian terminal operator.
Finally, the January report from the IATA is in. Numbers show that the pace in air cargo dropped against December, largely due to disruptions and weaker economic issues.
For the rest of this week’s top stories, check out the article highlights below.
