What We're Reading: BDP Trendwatch Week 29

Black smoke blowing from Maersk Line vessel

Container volume at major Chinese ports up 3.4% in early July

Container volumes at eight major Chinese ports increased 3.4% year-on-year in early July.

Looking at export container volumes Xiamen port reported a 1.5% increase and Guangzhou port posted over 10% growth rate.

Cargo throughput at major coastal ports increased 12.1% year-on-year, the export cargo throughput increased 14.4%.

Source: Seatrade Maritime

 

Worst over for carriers as inactive boxship fleet ducks below 2m teu

The inactive containership fleet has ducked below the 2m teu mark for the first time in four months as the sector moves away from the bottom of the current coronavirus-inspired cycle. 

Latest data from Alphaliner shows the inactive box fleet fell to 375 ships equating to 1,847,871 teu as of July 6, a drop of 471,508 teu since the analysts’ last tally in late June. Alphaliner stated in its latest weekly report that the data indicated “improving market conditions” with carriers continuing to ease their strict capacity management as global economies emerge post-lockdown. The new figures also reflect the fact that boxships have passed their peak scrubber installation period.

Source: Splash 24/7

 

Southeast US warehousing markets to grow as supply chains opt for China+1 strategies

The report makes it clear that operations in the Eastern U.S. will still be smaller than the West Coast behemoths, and China will likely remain among the country's largest trading partners. But some factors will benefit the Southeast and lead to it grow at a faster rate, according to CBRE.

One is that the countries companies are turning to as alternative trading partners have an easier time shipping to the East Coast than the West Coast, because they can access the U.S. fastest through the Suez Canal.

Source: Supply Chain Dive

 

Rethinking resiliency as the pressure on port operations increases

Now, more than ever, as supply chains across the world are affected, port operators need to account for isolated, disruptive events that have the potential to impact not only their operations, but also their profitability.

World trade increasingly relies on longer, larger and more complex port facilities and systems, with maritime transport a vital trade backbone. As such, when ports experience failures or disruption, it’s big news.

Source: The Loadstar

 

Canceled sailings continue to impact volumes at Port of Long Beach

The COVID-19 pandemic continued to drive down demand for goods in the second quarter of 2020, according to a report from the Port of Long Beach. Port officials cited the economic impacts, which they said had resulted in an increase in canceled sailings and a decline in cargo containers shipped through the port in June.

“Canceled sailings continued to rise at a rapid rate in the second quarter as ocean carriers adjusted their voyages to a decline in demand for imports during the national COVID-19 outbreak,” said Mario Cordero, Executive Director of the Port of Long Beach. “The economic challenges may persist for some time, but the Port of Long Beach continues to invest in infrastructure projects that will meet the needs of our customers.”

Source: The Maritime Executive

 

Whitehall unveils Brexit border operating model – but the tech may prove tricky

The UK logistics industry has welcomed more clarity in the government’s new border operating model, but has warned that many details are still lacking, making the timeframes “extremely challenging”.

The 206-page document, published yesterday, outlines protocols for borders and differing commodities, but a lot relies on new technology, which is either not completed or not currently compatible with industry systems.

However, the British International Freight Association (BIFA) welcomed an acknowledgement that forwarders play a crucial role in managing customs procedures.

Source: The Loadstar

 

EU to focus on diversifying crucial supply chains

The European Union will seek to diversify its supply chains to cut reliance on other nations for crucial assets such as medicines, even as it works to strengthen trade ties with India, the bloc’s top diplomat said.

The reevaluation by the group of 27 countries will mark a shift similar to moves made after the oil crisis in the 1970s when Europe faced high prices amid fuel shortages, said the group’s foreign policy chief Josep Borrell in an email interview ahead of Wednesday’s India-EU trade summit.

Source: Supply Chain Brain