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Cosco’s first-half profits sink amid volume decline
Greg Knowler, Senior Europe Editor |
China’s largest shipping group plans to grow its integrated service network to match changing demand patterns as the global economy slowly rebuilds.
Maritime
US sourcing upswing prompts India ocean routing changes
Bency Mathew, Special India Correspondent |
While there has been a discernible shift in global sourcing patterns toward countries in Southeast Asia, India has yet to become a key beneficiary of that evolving migration, with the challenges tied to its ocean supply chains seen as a big barrier to larger trade aspirations.
Container lines
Container shortages fade before peak ag export season
Bill Mongelluzzo, Senior Editor |
With trans-Pacific carriers having no blank sailings scheduled through September, US exporters anticipate there will be sufficient westbound capacity to ship their commodities to Asia.
Container lines
Sharp draws in US retail inventories caused stock-outs
Cathy Morrow Roberson, Senior Contributor |
Retail inventories declined during the second quarter and are expected to continue falling into the third quarter.
Supply chain
Transplace buys LeanCor to reach more manufacturers
William B. Cassidy, Senior Editor |
Third-party logistics provider Transplace looks to expand its shipper customer base through the acquisition of LeanCor, a supply-chain company focused on lean manufacturing.
Logistics Technology News
PNW shippers face delays on Vancouver, Prince Rupert congestion
Bill Mongelluzzo, Senior Editor |
With month-long rail issues at Vancouver and Prince Rupert continuing, beneficial cargo owners shipping through the Canadian ports must now contend with vessel arrival delays of as much as two weeks.
International ports
Maersk to ditch Safmarine, Damco brands in revamp
Keith Wallis, Special Correspondent |
Maersk’s reorganization is expected to lead to a raft of redundancies and possible office closures, with Danish newspaper Borsen reporting a loss of 3,400 jobs, or roughly 4 percent of its workforce.
Container lines
Purolator expands US-Canada next-day service
William B. Cassidy, Senior Editor |
As e-commerce booms on both sides of the US-Canadian border, Purolator International expands northbound next-day air service between the countries.
Air Cargo Forwarder News
UHL looks to fill looming offshore wind vessel shortage
Keith Wallis, Special Correspondent |
Projected growth in the offshore wind market inspired UHL to buy nine F900 Eco-lifter multipurpose/heavy lift ships from Zeamarine in late 2019 and early 2020.
Project cargo
Qwyk, SimpliShip expand reach into small forwarder networks
Eric Johnson, Senior Technology Editor |
Logistics software providers Qwyk and SimpliShip have jointly landed their second forwarding network as customers, signaling how small and medium 3PLs need technology to keep pace with larger competitors.
Logistics Technology News
Small Louisiana port looks to containers for growth
Michael Angell, Special Correspondent |
Plaquemines’ grand ambition for a container terminal comes as other Gulf Coast ports are vying to host larger vessels and offer easier access to the US Midwest.
North American ports
Alliance structure hampers expanding container line offerings
Lars Jensen, CEO & Partner, SeaIntelligence Consulting |
New service offerings announced recently by CMA CGM demonstrate that while alliances serve the carriers well in terms of cost efficiencies, the benefits may not extend much further.
Container lines
E-commerce changing peak-season shipping patterns
Bill Mongelluzzo, Senior Editor |
The US import surge that began in late June now looks like it will continue at least through October as consumers turn to e-commerce for purchases, including holiday season merchandise.
Container lines
US regulators to test ‘split duty period’ for truckers
William B. Cassidy, Senior Editor |
A proposed Federal Motor Carrier Safety Administration pilot project would let truck drivers stop the hours of service clock for up to three hours and then resume driving, giving them more control over their schedules, but a longer day.
Transport, Trade, and Regulation News
Trucking News
Trucking labor
Houston container terminals reopen after storm closure
JOC Staff |
Both of Houston’s container terminals were shut for two days this week as a precaution as Hurricane Laura approached the Gulf Coast.
North American ports
UP raises surcharge to $5,000 for small shippers in Los Angeles
Ari Ashe, Senior Editor |
UP will raise surcharges again out of Los Angeles on all shippers, as previous rate increases have been ineffective in slowing volumes that threaten to overwhelm the railroad’s network.
North-American rail
Air cargo rates from China set for Q4 takeoff
Greg Knowler, Senior Europe Editor |
Average air freight spot rates on the trans-Pacific and Asia-Europe trade lanes weakened this week, but forwarders and analysts are predicting that rising demand will drive rates back up in the fourth quarter.
Air Cargo
US retailers, parcel carriers prepare for ‘very different’ peak season
Cathy Morrow Roberson, Senior Contributor |
More US small parcel carriers are implementing peak season surcharges as retailers prepare for an atypical holiday season.
Trucking News
Truckers press LA–LB ports to seek more data from carriers
Bill Mongelluzzo, Senior Editor |
Truckers and cargo owners are urging the ports of Los Angeles and Long Beach to incentivize ocean carriers to share more shipment information earlier to improve cargo velocity in Southern California.
North American ports
Pandemic disruption spurs C.H. Robinson’s TMS integrations
William B. Cassidy, Senior Editor |
Shippers need quicker access to carrier, rate information as lanes, customers, and pricing shift under COVID-19, C.H. Robinson says.
Truck brokers
UP tightens container drop timing in Chicago, Denver to prevent congestion
Ari Ashe, Senior Editor |
Shippers will have to plan their supply chains more carefully in Denver and Chicago because Union Pacific Railroad will no longer accept containers more than two days before their scheduled departure due to an onslaught of intermodal volume.
North-American rail
Hydrogen leads way in shipping’s zero-carbon fuel search
Greg Knowler, Senior Europe Editor |
Research into finding a zero-carbon fuel capable of powering international shipping has continued even as navigating the COVID-19 pandemic consumed much of the industry’s attention in 2020.
Logistics Technology News
US truckload activity still rising, but moderately: FourKites
William B. Cassidy, Senior Editor |
Truckload freight volumes are still increasing overall, but not at the frenetic pace of July, supply chain visibility provider FourKites says. That's a sign supply chains are "rebalancing," though spot pricing remains elevated.
Truckload
Cosco to boost box-making business with funds from CIMC sale
Keith Wallis, Special Correspondent |
Cosco’s sale of a large portion of its ownership stake in China International Marine Containers appears to be a state-mandated move to consolidate control around China Merchants Group, CIMC’s largest shareholder.
Container lines
Importers concentrating peak season shipments in LA–LB
Bill Mongelluzzo, Senior Editor |
The Los Angeles–Long Beach gateway’s market share increased in July as retailers focused just-in-time shipments through Southern California, a trend that is expected to continue through September.
North American ports
JOC Uncharted: Shippers should plan for rising Asia–Europe contract rates
Greg Knowler, Senior Europe Editor |
Spot rate developments are an indicator of what to expect from the long-term contract market, and current trends show the spot market on Asia–Europe continuing to increase, according to Xeneta.
Maritime
Carrier service adjustments threaten India’s direct shipping push
Bency Mathew, Special India Correspondent |
With carriers refocusing on Colombo or other regional hubs for predictable cost advantages in tighter market conditions, Indian cargo owners may have to wait longer to enjoy more competitive, direct shipping solutions.
Container lines
Reinvented Roadrunner to increase LTL velocity
William B. Cassidy, Senior Editor |
After selling its last remaining non-LTL subsidiaries, Roadrunner Transportation plans to shorten transit times on more lanes, improve service, and win over LTL shippers and drivers.
LTL
John Deere boosts earnings expectations despite double-digit Q3 decline
Janet Nodar, Senior Editor, Breakbulk and Heavy Lift |
Breakbulk shipper John Deere is signaling mild optimism for the balance of the year even as construction and agriculture machinery sales falter due to the COVID-19 pandemic.
Ro/ro cargo
JOC Rankings: Smaller US import carriers gained share in early 2020
JOC Staff |
Only eight of the JOC Top 40 Container Carriers by US Imports managed to increase volumes in the first five months of the year, none of which belong to one of the three major vessel-sharing alliances.
Container lines
UP levying $500 surcharge in Seattle next month
Ari Ashe, Senior Editor |
Union Pacific Railroad will institute a $500 surcharge on excess cargo for all shippers in Seattle to divert as many assets to Los Angeles as possible amid record-breaking cargo spikes in Southern California.
North-American rail
International rail
Vessels eye lower costs with Chittagong VLSFO supply
Bangladesh Special Correspondent |
The availability of IMO-compliant 0.5 percent sulfur fuel oil in Bangladesh’s main port will help lower costs for carriers, particularly the feeder operators that work vessels calling from major regional hubs.
International ports
MSC adds trans-Pacific capacity on strong US import demand
Bill Mongelluzzo, Senior Editor |
Mediterranean Shipping Co. announced a new weekly service from Asia to the US West Coast to meet import demand that has risen significantly in the past two months.
Container lines
High-and-heavy hits the road to LNG Canada project
Chris Barnett, Special Correspondent |
Despite a COVID-19-driven construction slowdown and a complex permitting regime, the second wave of breakbulk cargo will soon begin delivery to the $40 billion LNG Canada project.
Ro/ro cargo
Breakbulk carriers
Capacity cuts in Q3 a precursor of flat volume: analyst
Greg Knowler, Senior Europe Editor |
The correlation between blank sailings and volume through the coronavirus-hit second quarter can be used to predict upcoming demand with reasonable accuracy, says Sea-Intelligence Maritime Analysis.
Maritime
Higher profitability puts onus on container lines to build value
Peter Tirschwell |
In proactively and successfully influencing the direction of the market as container lines have done this year, leading to higher rates and stronger profit, the carriers will inevitably provoke a regulatory reaction.
Container lines
Demand growing for priority trans-Pacific services from Vietnam
Bill Mongelluzzo, Senior Editor |
APL Logistics has added Haiphong to its OceanGuaranteed product as demand for premium services from Vietnam increases with the shift of some manufacturing from China.
Container lines
Savannah, Virginia ports adjust operations to import uptick
Ari Ashe, Senior Editor |
Port authorities in the US Southeast are closely monitoring terminal fluidity as volume picks up, and making adjustments to ensure cargo owners don’t see service degrade.
North American ports
Wallenius Wilhelmsen reports $19 million loss on Q2 volume plunge
Janet Nodar, Senior Editor, Breakbulk and Heavy Lift |
Stable high-and-heavy cargo volumes reduced loss margins for Wallenius Wilhelmsen as the carrier slow steams and puts 15 ships in cold layup to cut costs.
Ro/ro cargo
Maritime
Montreal port strike truce reached, but cargo backlog to last weeks
Mark Szakonyi, Executive Editor |
Leaders from the Maritime Employers Association and the Canadian Union of Public Employees (CUPE) say they are confident they can agree to a new contract before the truce expires in March 2021.
International ports
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