What We're Reading: BDP Trendwatch Week 48

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Rollover cargo still on the increase says Ocean Insights

Increasing levels of rollover cargo at congested ports are continuing to prevent the smooth operation of global supply chains an Ocean Insights study has found.

Asian ports exporting to Europe and the US have seen a month-on-month rise in cargo delayed at ports during October, according to data analysis of  more than one million data points, according to the data consolidation and analysis group for forwarders and shippers, Ocean Insights, which is based in Rostock Germany.

Source: Container News

 

Boatloads of cargo off Los Angeles grind gears of world economy

A flotilla of almost a dozen cargo vessels sits anchored just south of Los Angeles this weekend, waiting for berth space. Around the twin ports of L.A. and Long Beach, shipping containers are already stacked five and six high - the maximum the fire department will allow.

“Anywhere you go, there are just containers everywhere,” said Weston LaBar, CEO of the Harbor Trucking Association, an industry group in Long Beach representing carriers who haul the steel boxes to and from the ports. “It’s maddening.”

Source: Supply Chain Brain, Bloomberg

 

US-UK air services pact gives cargo operators additional rights

The recent air services agreement signed by the US and UK provides US cargo operators with rights they did not have under the US’s deal with the European Union (EU).

The agreement, which was concluded two years ago and signed by both countries on November 17, ensures flights continue between the two countries after the UK leaves the EU later this year, continuing the so-called ‘open skies’ between them.

Source: Air Cargo News

 

Teetering airlines will struggle to outlast wait for vaccine

The trio of coronavirus vaccines racing toward approval may reach the masses too late to prevent another round of airline failures.

With last week’s insolvency filing at Norwegian Air Shuttle ASA, some 42 airlines worldwide have failed or entered administration this year, according to research from consultant IBA Group. The tally may surpass 70 through March, as rising cases weigh on revenue and carriers struggle to secure fresh funding.

“The fourth quarter and the first quarter of next year could be equally terrible,” IBA’s Stuart Hatcher said in an interview. “Airlines will be trying everything to get through to Easter, when higher demand should coincide with the roll-out of the vaccine, but there comes a point when the money runs out.”

Source: AJOT, Bloomberg

 

UK logistics sector may be down, but it's certainly not out, suggests survey

The UK logistics industry is beset with pessimism, according to a new survey showing the confidence index at 47.1 – its lowest level since records began in 2012.

The Barclays-BDO Logistics Confidence Index notes the “unprecedented domestic and global uncertainty created by the pandemic, in addition to ongoing concerns over the UK’s future relationship with the EU and the continuing skills shortages”.

Source: The Loadstar

 

Companies pursue alternative suppliers to spread supply chain risks and build resilience to mitigate COVID-19 impact

The COVID-19 pandemic is forcing companies to explore new suppliers and hasten digitalization, as part of their response to the supply chain disruption caused by the pandemic. According to DNV GL’s Viewpoint survey of 1,142 companies, 56% of the respondents have experienced supply chain disruption due to the pandemic. The main causes of disruption are delays in supplies (45% of respondents), logistic issues (34%) and limitations to international trade (24%).

As a result, 57% are planning to strengthen and diversify their supply chain by working with new suppliers. Companies are also looking to mitigate the impact of the pandemic by the introduction of digitalization (36%), revised supplier criteria (36%) and review stock management practices (36%).

Source: AJOT

 

5 maritime sustainability trends for 2021

According to the Environmental Defense Fund (EDF), “ships transport roughly 90% of world trade and account for 3% of global greenhouse gas emissions.” The International Maritime Organization (IMO) is having a large impact on sustainable operations for ocean freight. Here are five environmental sustainability trends coming in 2021.

Source: Freight Waves

 

China debt: Beijing may cut belt and road lending due to domestic pressure, to ensure future of project

President Xi Jinping last week doubled down on China’s commitment to his grand foreign policy project, the Belt and Road Initiative, but opinions are split over the sustainability of such investment amid a backdrop of rising debt at home.

“China will further harmonise policies, rules and standards with [Belt and Road Initiative] partners, and deepen effective cooperation with them on infrastructure, industry, trade, science and technological innovation, public health and people-to-people exchanges,” Xi said in his keynote address to the Asia-Pacific Economic Cooperation (Apec) forum.

Source: South China Morning Post

 

Impact assessment gives Montreal Port expansion green light

A draft environmental impact assessment by the Canadian authorities into the 1.15 million TEU Montréal Port terminal expansion at Contrecoeur has given the Canadian Government its approval for the development of the port expansion.

At a cost of up to C$950 (US$727.7) million the terminal expansion will be sited 40km downstream from Montréal with construction of a 675m quay with two berths and will be capable of handling vessels of between 39,000 and 75,400dwt. The construction is scheduled to start next year.

Source: Container News

 

Market recovery slows in early November

The air cargo market’s gradual recovery appears to have slowed in the first two weeks of November as demand and load factors plateaued, according to WorldACD data.

Figures for the first half of the month show that volumes stood at 48% of the October total, meanwhile the average load factors for the period were slightly lower than in October.

Source: Air Cargo News

 

US regulator steps up pressure on ocean carriers

The US Federal Maritime Commission has stepped up its efforts to find a resolution to the congestion problems and equipment shortages affecting US container terminals and shippers.

The regulator has expanded the scope of its fact-finding mission into detention and demurrage to investigate the carriers operating in alliances and calling at Long Beach, Los Angeles and New York/New Jersey.

“The time has come to resolve the most serious impediments to port performance,” said commissioner Rebecca Dye. I’d like to thank my fellow commissioners for their support of the Supplemental Order for Fact Finding 29, as I focus the investigation on the extreme conditions in the Ports of Los Angeles, Long Beach, and New York/New Jersey. The order emphasises that I, as fact finding officer, have all enforcement options at my disposal to address the crisis that exists in our major port gateways.”

Source: Lloyd´s Loading List

 

Lufthansa Cargo commits to United Nations' sustainability goals

Lufthansa Cargo is aligning its corporate responsibility commitment to the sustainability goals of the United Nations (UN). Within the framework of its Agenda 2030, the United Nations had adopted 17 concrete sustainability goals, covering economic, ecological and social aspects. The Agenda 2030 aims to end hunger and poverty on earth over the next ten years, combat inequality, strengthen education, health care and the economy and counteract climate change. Lufthansa Cargo has committed itself to anchoring five selected sustainability goals in its corporate activities and to making a substantial contribution to achieving these goals by 2030.

Source: The Stat Trade Times

 

Hamburg Forecasts Beginning of Recovery

The Port of Hamburg, one of Europe’s busiest ports, reported that its volume declines are slowing versus earlier in the year, but persisted in the third quarter of 2020. While the economic impact of the pandemic has hit the port especially hard and it is has lagged in the rebound other ports have experienced, Hamburg is now reporting that it believes a recovery is now underway.

A range of factors is being cited as contributing to the declines in volumes the port experienced. The negative effects of the pandemic are reported to be still affecting developments in the Port of Hamburg’s cargo throughput. Port officials cited a downsizing in numerous economic sectors and lower demand for consumer goods. A drop in steel production was cited as the reason for lower volumes in ore and coal imports, while the agribulk reported strong growth in the first nine months of 2020. Significantly higher exports of grain and fertilizers were cited as the main contributors to cargo throughput volumes.

Source: The Maritime Executive