Container shipping

The Hamburg-based carrier has confirmed that HMM’s South Korean state owners have removed it from the bidding process.

The completion of the terminal acquisitions gives the carrier a stronger footprint in the US’s largest East Coast gateway.

Some 75% of union members participating in the vote agreed to ratify the tentative contract that was reached in mid-June, opening the door to labor peace at West Coast ports at least through mid-2028.

The move is part of an ongoing effort by the FMC to bolster the oversight of regulated entities through “informed compliance,” an agency spokesperson said.

A series of quarterly profit declines by container shipping lines will still not be enough to drag the industry into the red in 2023, says analyst John McCown.

Given the short duration of the port and terminal closures, impacts appeared minimal as Jacksonville, Savannah and Charleston resumed normal operations.

For any number of product categories, relocating sourcing brings with it less efficient logistics, occasional lower quality and overall higher costs at a time when cost control is rapidly assuming a higher priority for shippers.

Ports along the southeast coast of the US were experiencing various stages of disruption after a major hurricane made landfall on Florida’s west coast.

US retailers historically stock up for the spring season and top off inventories following winter holiday depletion and before the Chinese New Year, but forwarders and carriers admit there’s no guarantee this time around.

Hapag-Lloyd's apparent interest in HMM, which was never officially confirmed, appears to have been derailed by South Korean national concerns despite the Hamburg-based carrier’s financial strength dwarfing local bidders.

The ports of Vancouver and Prince Rupert experienced a series of labor disruptions in July during longshore contract negotiations, while the Panama Canal implemented draft restrictions amid a severe drought.

But in its interim earnings announcement, Cosco Shipping Holdings also maintained a cautious outlook due to challenges it cited, including the global economy, inflationary pressures in Europe and America, and the delivery of new vessels.

Supply overcapacity coupled with mediocre freight demand has the top 25 trans-Pacific non-vessel-operating common carriers deciding whether to chase lower margin business or suffer volume losses.

Two congress members, backed by terminal operators, are insisting maritime regulators follow the congressional intent that underpins OSRA-22 or risk “severe” disruptions to the US supply chain.

The insetting product enters an industry where there is currently a reluctance by cargo owners to pay premium prices for more eco-friendly shipping services.

The carrier is looking to have an earlier ruling by the FMC reversed, arguing that the agency turned the incentive principle guiding cargo flow through US marine terminals “on its head.”

Inventory drawdowns and right-sizing will keep Asia-to-US container and air freight volumes soft well into 2024, writes analyst Jason Miller.

With a formal request for information, Federal Maritime Commissioner Carl Bentzel believes the agency is introducing a more “transparent and inclusive process” with stakeholders when it comes to policymaking.

MSC, which has implemented large-scale network realignments in recent months, halted Indian calls on the Sentosa service in April when it opened a standalone intra-Asia loop.

The Port Authority of New York and New Jersey said the new leases attempt to “strike a balance” to reflect current market realities, but other MTO sources called the practice of sharing demurrage uncommon.

In addition to the typical annual planning, such as for budgets and freight rates, US importers need to start weighing contingency plans for two potentially disruptive occurrences next year — continued low-water levels along the Panama Canal and the expiration of the International Longshoremen’s Association contract, writes Lars Jensen.

Weak European demand for containerized trade through the first half is hurting port throughput at the region’s top three gateways, but signs are emerging of recovering volume on certain routes.

Additional upward pressure might soon be brought to bear on spot rates, with forwarders expecting carriers to ramp up blank sailings through the fourth quarter to mitigate a significant injection of new capacity.

Blank sailings during August held largely steady from July as the outlook for US import demand remains unclear, according to forwarders.

The CMA CGM subsidiary’s latest acquisition will significantly increase its presence in South Asia that is growing in importance as supply chain routes shift across the region.

The Cosco Shipping subsidiary noted that significant uncertainties over economic growth prospects and the huge injection of capacity into major trade lanes made forecasting difficult.

The fresh data also showed — starkly — how the West Coast’s share of imports from Asia eroded during the 13 months of contentious contract negotiations between the ILWU and waterfront employers.

Getting shippers to commit to premium-priced, low-emissions shipping services is a hard sell for ocean carriers and forwarders as cargo owners enjoy rates that are now mostly below pre-pandemic levels after two years of record highs.

Carriers will have to withdraw large amounts of capacity to prevent a freefall in rate levels that are expected to be undermined by rising capacity and subdued demand, according to forwarders.

The proposed rulemaking shows how far the pendulum of power has swung in favor of shippers seeking to hold carriers accountable for practices that occurred during the pandemic, but which were rarely experienced prior to that period, writes Peter Tirschwell.

Portchain has pulled in 76 container terminals into its vessel arrival coordination platform with carriers in the past 18 months, with Port Houston the latest to join.

Despite the stability offered by contracted volume, the Israel-based carrier decided against locking in long-term rates at unsustainably low levels.

The clash between shippers and container lines highlights a major challenge for the FMC in finalizing rulemaking on when a carrier can refuse to serve shippers, most notably the risk that it could create a rule that’s so commercially restrictive that it’s unconstitutional.

Rolf Habben Jansen has hinted that capacity cuts on the trans-Atlantic could be made “fairly soon” as supply outstrips weak demand for US imports.

A study of global logistics professionals around hurdles to technology investment found that respondents were uninterested in linking financial rewards with software adoption.

A sharp increase in new vessel deliveries over the coming weeks is forecast to put more pressure on ocean carriers to blank sailings — or face falling rates.

The National Shipper Advisory Committee saw some good in the FMC commissioner’s ideas, but said without a clear path for implementation, businesses will continue to be hurt by detention and demurrage charges.

Average rates from West India to Europe and the Mediterranean have cooled between 10 to 15% from what carriers were quoting at the end of July, deepening the slide seen over the past year.

Spot rates in the eastbound trans-Pacific continue to move higher, although a planned general rate increase this week could be the last one for a while, as carriers are scheduled to add a significant amount of new capacity into the global fleet beginning later this year.

Stalled since May, the Ocean Shipping Reform Technical Act of 2023 may never be taken up by the House of Representatives as regulators are still struggling to implement last year’s original legislation.