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Week 31 Freight Updates

August 4th, 2021

COVID-19 strikes manufacturing supply chains again as Vietnam experiences the highest number of positive coronavirus cases the nation has seen since the pandemic’s first wave. This news comes at a time when Canada Border Service Agency (CBSA) officers and customs officials are going on strike while wildfires in California and Oregon are forcing portions of Union Pacific and BNSF’s rail lines to close.

The ports of Los Angeles and Long Beach are also starting to notice excessive vessel bunching, rising equipment shortages, and lengthier dwell times matching 2020 peak season levels as a result of the delays in Yantian. With the scramble for capacity intensifying, the demand for new containers is soaring, causing prices to skyrocket despite inventory levels remaining relatively low.

According to the Drewry World Container Index, “the average price to ship an FEU from Shanghai to Los Angeles reached $10,503 this week” shortly before ocean liners prepare to roll out another round of surcharges for shippers. This kind of carrier pricing has recently come under fire as the U.S. government creates legislation to better regulate unreasonable detention and demurrage fees.

To learn more about international shipping’s leading headlines, check out the following article links:

COVID-19 measures in Vietnam pummel an already bruised supply chain

COVID-19 measures in Vietnam pummel an already bruised supply chain

Add another log to the fire that is choking global supply chains. Strict lockdown measures to suppress Vietnam’s worst outbreak of COVID infections since the pandemic began are severely curtailing factory production.

Wildfires halt Union Pacific, BNSF trains in Northern California

Wildfires halt Union Pacific, BNSF trains in Northern California

Western U.S. railroads Union Pacific and BNSF have been grappling with wildfires in California and Oregon that have closed portions of their networks.

LA-LB terminals sound congestion alarm well ahead of peak season (sub. required)

LA-LB terminals sound congestion alarm well ahead of peak season (sub. required)

Terminal operators in the ports of Los Angeles and Long Beach sounded the alarm this week that they are already beginning to experience the vessel bunching, chassis shortages, and excessive container dwell times seen during the 2020 peak season last fall.

Containers are being built at a record pace. It’s still not enough

Containers are being built at a record pace. It’s still not enough

When will the container capacity crunch finally ease? For an early indicator, keep an eye on production of the humble 40-foot dry cargo box.

Asia-West Coast container rates hit new high ahead of surcharges (sub. required)

Asia-West Coast container rates hit new high ahead of surcharges (sub. required)

A key indicator of container shipping rates from Asia to the US West Coast broke a new record this week in shattering the $10,000 ceiling for 40-foot units as container lines ready another wave of surcharges that kick in next week.

Regulating detention, demurrage comes with risks (sub. required)

Regulating detention, demurrage comes with risks (sub. required)

Detention and demurrage billing by ocean carriers is now in the spotlight more than ever following its inclusion in the Biden administration’s July 9 executive order.

2021-08-03T23:07:44+00:00August 4th, 2021|Shipping News|
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