Newsletter –  June 3, 2021

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The Disappearance of the Service Contract in Ocean Shipping and Resurgence of Ocean Tramp Practices

internationaltradeinsights.com
The below e-mail recently received by the author paints the picture we are seeing a thousand fold in the current ocean shipping marketplace in the inbound/outbound Asia trade lanes which underscores the serious disconnect currently between ocean common carriers and shippers in these U.S trade lanes… Read more here.

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OOCL Durban takes out two cranes in Kaohsiung

splash247.com
A giant gantry crane collapsed onto another crane today at Taiwan’s largest port as a containership came in too close to a moored, smaller vessel while coming in to dock.
The accident, caught on video, happened at 11.30 am local time at the Port of Kaohsiung. Read more here.

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Yantian expansion plans unveiled

splash247.com
At a time that its port is suffering unprecedented congestion brought on by extreme demand and a local outbreak of Covid-19, Hutchinson Ports has announced a big expansion at Yantian, the Hong Kong company’s first overseas terminal.
Hutchison will develop a new terminal on the eastern side of the Yantian International Container Terminals in Shenzhen. Read more here.

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Protestors claim to have blocked ZIM ship from docking in Oakland

splash247.com
Pro-Palestinian protestors, led by the San Francisco-based Arab Resource & Organizing Center (Aroc), have claimed victory in turning a ZIM ship away from the Port of Oakland in California. The organisation’s ‘Block the Boat’ campaign aims to prevent Israeli ship operator Zim Integrated Shipping Services from docking anywhere during an ‘International Week of Action’ that will end on June 9. Read more here.

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Container ship scores ‘off the charts,’ ‘fantasy’ charter rate: $135,000/day

freightwaves.com
In a sign of just how frenzied the container market has become, a freight forwarder is reportedly paying $135,000 per day for a short-term charter of the S Santiago, a 15-year-old container ship with a capacity of 5,060 twenty-foot equivalent units (TEUs).
“Charter rates for short employment … have gone out of control,” said Alphaliner in its new weekly report.  Read more here.

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GROUND AND RAIL FREIGHT UPDATES

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US transport board voices concern over rail preparedness for peak

theloadstar.com
Marty Oberman, chairman of the US Surface Transportation Board (STB), is a prolific letter writer these days, and has penned several missives to CEOs of the Class I rail companies and the Association of American Railroads expressing concern over service issues.
One letter is asking for an update on their preparations for the upcoming peak season, borne out of concern over reports from shippers of recent service problems. Read more here (login required).

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INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

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Supply chains stick with lean methods despite inventory woes

supplychaindive.com
Dive Brief:
Growing sales in March were met with flat inventory growth, according to the latest figures from the Census Bureau. The inventory-to-sales ratio dropped to 1.23 in March, the lowest ever recorded.
Manufacturers, retailers and wholesalers saw their sales grow by 9% YoY, 28% YoY and 19% YoY, respectively. Retail, with the most sales growth, is the only group that saw inventories decline in March, falling more than 7% YoY. Read more here.

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Reshoring Rose Significantly in 2020, Report Finds

industryweek.com
During the COVID-19 pandemic, the U.S. found itself unexpectedly facing down a global pandemic it was not materially supplied for. Shortages of PPE and medical technology pushed 3M protective mask operations into the headlines, and country-wide shutdowns led many to question the wisdom of complex international supply chains. Read more here.