Week 8 Freight Updates

As unseasonably high demand continues to push container volumes and spot rates to record highs, a new round of stimulus checks may only further strain trans-Pacific trade congestion. With carriers cracking down on MQCs and free time allocations, the pressure is especially on for shippers scrambling to adjust their supply chain processes in light of upcoming service contract negotiations.

Given that these conditions are likely here to stay a lot longer than initially expected, many are urging companies to give the ports of Los Angeles and Long Beach a much-needed break by promoting alternative U.S. gateways. To learn more, check out the following key highlights of this week’s top international shipping industry stories:

US import spike set to run into summer as west coast ports struggle

Container freight and charter markets are continuing to boom post-Chinese New Year, and analysts expect favourable conditions for carriers and shipowners to last at least into the second half.

Importers face toughest trans-Pacific service contract talks in years

North American retailers face arguably the most difficult trans-Pacific service contract negotiations in recent memory. Their freight rates have ballooned — for some, at more than twice the normal rates — and blown transportation budgets while cargo delays persist, often requiring premium prices to just guarantee loadings and equipment availability.

No rate relief in sight for ocean shippers as Lunar New Year passes

There is no relief in sight for ocean shippers looking for a downturn in rates on the Transpacific route, as spot prices have risen another 7% in the last week between China/East Asia and the North American West Coast, according to figures from Freightos.

Shippers Need Alternatives to West Coast Port Congestion

The ports of Los Angeles and Long Beach are currently experiencing severe congestion, with a heavy backup of containers waiting to unload import cargo from Asia. In this conversation with SupplyChainBrain Editor-in-Chief Bob Bowman, Jason Totah, president of Odyssey International Services Inc., discusses alternatives to bringing cargo through overtaxed West Coast ports.

MSC topples Maersk at the top of the box rankings

For the first time in more than a quarter of a century, Maersk is on track to lose its mantle as the world’s largest container line. Mediterranean Shipping Co (MSC), now run by former Maersk COO, Soren Toft, has been hoovering up secondhand tonnage in a massive way over the last six months.

Kuehne + Nagel buys Hong Kong forwarder Apex

Kuehne + Nagel (CXE: KNIN), the second-largest third-party logistics provider in the world by gross revenue ($25.9 billion), said it has agreed to acquire Hong Kong-based Apex International Corp. to better tap into the burgeoning e-commerce trade in Asia. Terms of the deal were not disclosed, but the Swiss logistics giant said it was the largest one in company history.

Related Posts