Global container dwell times remain high as the peak ocean shipping season approaches, and ports in South China remain clogged, which could spill over into the next few months, Crane Worldwide Logistics said in an ocean market update released last week. The company said it expects “disruption” among South China ports to extend to the end of 2021, but said progress is being made at the Port of Yantian in Guangdong, China, which has recently seen yard density drop 65% and productivity increase to 85% of normal levels. But other ports in South China remain clogged because of canceled port calls at Yantian, which “are still on the rise by carriers,” Crane said.
The White House is nominating Max Vekich to serve on the Federal Maritime Commission.
The National Retail Federation seeks a meeting with President Joe Biden to address the congestion at key U.S. maritime ports that’s “causing significant challenges for America’s retailers,” NRF CEO Matthew Shay wrote to the White House June 14. The congestion has “added days and weeks to our supply chains,” leading to “inventory shortages impacting our ability to serve our customers,” Shay said. The delays “have added significant transportation and warehousing costs” that many larger retailers can absorb, but smaller retailers “may have no choice but to pass along these costs” to consumers, he said. Retailers continue to work with the ports and transportation providers to resolve the congestion, but “[w]e need strong leadership from the administration to galvanize attention to the current situation as well as work to resolve long-standing issues that limit safe and efficient port operations,” Shay said. The White House didn’t comment.
A new container terminal at the port of Charleston, South Carolina, is the first container terminal to open in the U.S. since 2009, the South Carolina Ports Authority said April 9. The authority said the terminal was “20 years in the making” and expects it to offer some relief to highly congested container ports around the country, which are struggling to handle unprecedented levels of cargo. The first vessel arrived at the port last week.
Shipping price tags will remain high for the next 12 months as large manufacturers and retailers lock in the higher prices with ocean carriers for yearlong freight rates, Bloomberg reported April 11. For the past several months, the price to ship a container of goods from China to the U.S. West Coast and Europe has been near a record high, with conditions primed for even more increases.
Maersk reduced its Spot online booking service as it assesses the impact of last month’s Suez Canal blockage on global shipping and supply chains, the company said in an April 5 advisory. The reduction is expected to affect exports from Asia, Europe, the Americas and Africa, Maersk said. The company wants to “ensure that what we sell to our customers, we can deliver.”
The Federal Maritime Commission will begin issuing information demand orders to ocean carriers and terminal operators to determine if they are violating detention and demurrage practices, the FMC said Feb. 17. The orders will be sent to ocean carriers operating in an alliance and calling at the Port of Los Angeles, the Port of Long Beach or the Port of New York and New Jersey, and will require them to provide information on how they impose detention and demurrage charges, and their policies related to container returns and container availability for exporters (see 2012090009), the commission said.
A new fee on cargo passing through the ports of Los Angeles and Long Beach may start in the second half of 2021, a Port of Los Angeles spokesperson said, citing remarks from port staff at a Jan. 27 meeting. But each port’s harbor commission will need to vote to approve a start date for the Clean Truck Fund rate before the fee begins, the spokesperson said. Approved in March 2020, the fee will be assessed at $10 per twenty-foot equivalent unit (TEU) -- to be paid by the beneficial cargo owner -- for loaded containers hauled by heavy-duty trucks that enter or exit port terminals. The fee is intended to incentivize adoption of zero emissions trucks, which will be exempt from the fee. The ports are also considering exemptions for low nitrogen oxide trucks. Implementation of the fee has been delayed by the COVID-19 pandemic, the spokesperson said.
Detention and demurrage disruptions are causing devastating damage to U.S. intermodal carriers and are placing large burdens on the shipping and transportation industry, the Harbor Trucking Association said in a new report. The association, which represents U.S. drayage carriers serving West Coast ports, and TradeLanes, a technology company focused on streamlining global commodity trade, surveyed HTA members and found that more than half reported critical negative effects on their business from the detention and demurrage costs. Detention and demurrage is common in the industry as well, with 64% of respondents saying that they incur them on more than 15% of their containers with the average price around $200 per container. Once the charges are levied, governmental relief is rarely given, with 80% of respondents saying they got charges reduced 0-25% of the time. The charges cost more than money, evidenced by the majority of respondents saying the invoices take at least 45 minutes to complete.
CMA CGM, American President Lines, APL, and ANL Singapore are asking the Federal Maritime Commission for permission to retroactively apply service contract rates and terms to shipments received on or after Sept. 27 for a period of 60 days (see 2010090022). Their petition also is asking for the ability to retroactively apply tariff rates communicated to its customers but that have not been published because of “major system impacts due to the recent cyber-attack.” The FMC is asking for public comments on this request through Oct. 15.