The number of days containers are waiting to be picked up by trucks at California’s neighboring ports of Los Angeles and Long Beach climbed to a record in October, just before officials announced a new plan to clamp down on the backlog in collections.
The so-called dwell time for containers waiting at marine terminals for trucks was 7.64 days on average at the U.S.’s two largest ports last month, up from almost 6 days in September, the Pacific Merchant Shipping Association said in a statement Monday. Almost half of all containers unloaded had waited for more than five days, it said.
Meanwhile, dwell times for containers leaving the terminals by rail in October improved to 3.9 days from 5.5 days in September, resulting in the most efficient month this year.
There are fears of space to store containers in Taiwan running out, after Worldwide Freight Terminals sold its two storage yards.
The firm’s exit from the container depot business has given rise to concern that Taiwanese ports may experience bottlenecks like those on the US west coast.
Established in 1969, Worldwide began operations with Sealand (now part of Maersk) and Maersk Line as its first customers.
Benelux is one of the most logistically connected and established markets in the world and specifically Europe. The heavily interconnected region offers huge capacity for business in the countries of Belgium, the Netherlands and Luxemburg through some of the most important European airports it has in Amsterdam, Brussels, Liege and Luxembourg.
The air cargo commodities moved to and from the Benelux region have a high concentration of perishables and pharmaceuticals while there are high-tech and e-commerce shipments increasingly occupying the available capacity.
Canadian Pacific plans to restore service in British Columbia on Tuesday in a reprieve for the backlogged Port of Vancouver, which has been cut off from the rails for over a week following floods and landslides that devastated the province.
CP (NYSE:CP) said Monday that it expects to reopen its railway from Kamloops to Vancouver by midday and will be working to “clear the backlogs as quickly and efficiently as possible.”
“The following 10 days will be critical,” Keith Creel, CP president and CEO, said in a statement. “As we move from response to recovery to full-service resumption, our focus will be on working with customers to get the supply chain back in sync.”
Following the recent COP26 climate change conference in Glasgow, the maritime sector this week has an early opportunity to show its level of ambition has changed during the Marine Environment Protection Committee (MEPC) meeting.
The 77th session of the International Maritime Organization (IMO) MEPC, which began online today, will look to use the momentum created by COP26 to update the maritime industry’s targets for cutting greenhouse gas (GHG), from a 50% reduction by 2050 to zero, as proposed by the Marshall and Solomon Islands, with support from more than 100 member states.
Shipping is a notoriously volatile industry, one that has burnt many investors over the years. Yet, even by its own extreme standards, the volatility experienced across all the main shipping segments during the pandemic has been extraordinary, with all sectors experiencing earnings up by at least 100% as well as down by 50% since the start of 2020.
Analysts at investment bank Evercore have charted the indexed performances for VLCC, MR, capesize, LNG carrier, VLGC and neopanamax containership TCE earnings or main trade spot rates since the beginning of 2020 (see chart below) highlighting the extraordinarily fast peak and troughs in earnings for shipping during the Covid-19 era.
The Dublin Port Company is planning the long-term expansion of the port to meet the country’s future needs, including the construction of the largest container terminal in Ireland. When the project is completed in 2040, they will have invested a further $450 million in addition to current and previous projects adding another 20 percent to the port’s capacity.
“There is very little spare capacity for future growth of unitized trade in Dublin Port or in any other port in the country,” explains Eamonn O’Reilly, Dublin Port’s Chief Executive. “We are developing Dublin Port based on Masterplan 2040 at an overall estimated cost of €1.6 billion over the 30 years from 2010 to 2040. Port infrastructure is very expensive and, by the end of this year, we will have invested €500m in the 11 years since 2010. Over the next five years, we will invest a further €450m. We aim to begin to build the €400m 3FM Project in 2026 and to complete it between 2030 and 2035.“
CMA CGM Group has reported an astonishing surge in its profits during the third quarter of the year, reporting US$5.6 billion, while last year the company achieved US$567 million, according to the latest report.
The third-largest container carrier in the world has marked additional remarkable gains during the last quarter, with earnings before interest, tax, depreciation and amortisation (EBITDA) standing at US$7.1 billion which reflects to surge of almost 318% year-on-year.
At the same time, the French Group's EBITDA margin was 46.4%, a 25.4 point increase compared with the third quarter of 2020, while consolidated revenue reached US$15.3 billion, representing a significant growth of more than 89%, mainly driven by the Group's shipping activities.
The Danish provider of research & analysis, data and advisory services within the global supply chain industry, Sea-Intelligence has conducted a survey to see whether schedule reliability is related to freight rates.
The company analysed the relationship between those two, aiming to see whether periods with high schedule reliability resulted in higher freight rates.
"Whenever there is talk of schedule reliability, shippers have complained about the general lack of service quality in the industry. One debate that often then comes at the forefront, is whether shippers are at all willing to pay a premium for better schedule reliability," noted Alan Murphy, CEO of Sea-Intelligence.