Ship orders collapse … new research foresees difficult recovery … ripple effects of blank sailings … speedy terminal technology … container port capacity contracts … China’s New Export Orders Index falls short … UPS readies freezer farms to ship vaccines … all made headlines in week 32’s freight updates. Short on time? Check out our summary of the latest industry news.
Week 32 Freight Updates
August 7th, 2020
Ship orders collapse; will rate boom follow?
Pre-COVID, the bull case for shipping rates was all about plunging newbuild orders. A drop in orders in 2019 pointed to rising freight rates in 2021, given the lag between contract signing and delivery.
US freight after COVID-19: A bumpy road to the next normal
New research foresees a difficult recovery of up to four years, with some pockets of growth. Freight and logistics companies will need to adapt.
The Ripple Effect of “Blank Sailings”
Shippers, particularly importers from Asia, are aware that the market has become dangerous for importers’ careers. Shipper groups are reporting more than 100 “blank sailings” or vessel cancellations in just six months in the eastbound Pacific trade.
Terminal technology helps Crowley adapt to need for speed
A change in the terminal operating system (TOS) used by Crowley Maritime Corp. has sped up truck turn times and allowed for better use of limited yard space within its three hubs in Florida and Puerto Rico. The shift is part of a decade-long operational change that’s paying dividends for the liner carrier and supply chain services provider.
Growth in Container Port Capacity to Contract as Trade Declines
A new report says port operators are reviewing investment plans as shipping volumes wane during the coronavirus pandemic.
Shipping number of the week: New Export Orders’ rise to 48.4 in July is not enough to stage a recovery
China’s New Export Orders Index rose to 48.4 in July but much more is needed for the country’s manufacturing industry to close the gap, and more new export orders are needed to stage a sustainable recovery for the global container shipping industry.
UPS Readies Freezer Farms to Ship Virus Vaccine — If We Get One
United Parcel Service Inc. is building two giant freezer farms capable of super-cooling millions of vials of a COVID-19 vaccine, preparing for the day when it will need to deliver the medicine at high speed across the globe.
