Newsletter – December 16, 2021
OCEAN FREIGHT UPDATES
‘Halloween costumes are still coming through the ports’
When you look at the millions of containers processed through our nation’s ports, many Americans do not realize that a single container can have hundreds of different products within each box. With the pressure to fulfill the holiday deadlines of their customers, logistics companies like C.H. Robinson are deploying employees to open these containers and sort out time-sensitive items in an effort to get them on store shelves on time. Read more here.
Los Angeles import volume sinks as shipping traffic jam worsens
Despite America’s epic consumer boom, containerized imports to the Port of Los Angeles dropped to 403,569 twenty-foot equivalent units in November, down 14% from October and down 13.2% year on year. For the second month in a row, Los Angeles’ containerized imports have fallen below levels in the same months in 2018. Read more here.
Tech developments may solve the ‘efficiency killer’: chronic port congestion
Just-in-time shipping and high-bay container storage could be the answer to the global port congestion crisis.
According to Emre Cebecioglu, smart ports business development manager at Wartsila, port congestion is one of the biggest issues facing the container shipping industry, labelling it an “efficiency killer”. Read more here (login required).
Four major threats almost guaranteeing another challenging year for shippers
The fractious relationship between ocean carriers and their freight forwarder and NVOCC customers is seen as one of four key disrupters to the supply chain next year, by maritime consultant Drewry.
“We are starting to see that some ocean carriers are withdrawing from NVOCC relationships and others making it difficult for NVOs to offer carrier-like fixed-contract rates to shippers under preferential ‘named account’ terms agreed in advance with ocean carriers,” it said. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Shippers convert back to rail out of California as truckload costs continue to rise
Truckload tender volumes have dropped approximately 11% over the past month out of Los Angeles while loaded domestic container shipments moving on the rail have increased 3%. It is somewhat normal for freight shipments to fade coming from Southern California this time of the year, but the extreme divergence between trucking tender volumes and rail intermodal shipments is much larger than expected. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Deliveright expands heavy-goods delivery platform to include Canada
White-glove delivery platform Deliveright on Thursday announced its expansion to Canada. Specializing in heavy-goods delivery, Deliveright operates in most of the U.S., offering e-commerce, dedicated and less-than-truckload, warehousing and rapid fulfillment, and business-to-business distribution services across its network. Read more here.
Cass: High rates drive record freight costs
Shipments stepped higher again in November with freight expenditures continuing to surge, according to a Tuesday report from Cass Information Systems.
The Cass Freight Index recorded a 4.5% year-over-year increase in shipments, up 2.6% from October seasonally adjusted. The expenditures component jumped 43.9% from a year ago and 10.2% sequentially. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
More freak weather: time to expect the unexpected, warns TT Club
As well as large-scale catastrophes ,such as in Vancouver recently, the increasing frequency of freak weather events due to climate change is translating into a rising level of risk to cargo, says insurer TT Club. Read more here (login required).