Container lines

Trans-Pacific carriers are wrapping up service contract talks with small and mid-size shippers at much higher rates than large retailers secured just months ago.

Democratic senators took the opportunity of a recent committee meeting to drill FMC Chairman Daniel Maffei on sky-high freight rates charged by ocean carriers amid declining service levels.

The upward spiral in freight rates that has allowed carriers to earn record profits was caused by the same fundamentals that held rates and profits down before pandemic: supply and demand.

Mediterranean Shipping Co. is launching the first container service into the US East Coast that will call three Baltic countries directly, as congestion woes on the trans-Atlantic mount.

German startup Flowfox is working with Kuehne + Nagel to pilot its platform that automates import clearance and container re-use at European ports with an eye toward global expansion of the solution.

US ports, labor unions, and US-flag interests are joining container lines in a bid to stop the Biden administration and Congress from stripping the limited antitrust immunity carriers enjoy.

The Justice Department’s probe of the US supply chain comes amid increased pressure from the Biden administration to more closely monitor container line pricing activities in the wake of historic rate levels.

The need to share data among supply chain participants has become a priority amid record volumes of US imports that have resulted in vessel backlogs, terminal congestion, and a stressed inland logistics sector.

Maritime groups say they have addressed concerns that have slowed progress in creating an R&D fund meant to find global shipping’s green fuel of the future.

Maersk is selling its stake in a publicly traded Russian ports operator whose market value has plunged in recent weeks owing to the war in Ukraine.

OOCL’s Rail-Sea service to the US East Coast has been shifted away from a Russian transshipment port and instead is using a route through Poland amid the ongoing war in Ukraine.

Geopolitical turmoil is pushing up bunker prices, significantly adding to carrier costs that will be passed on to shippers through fuel surcharges in long-term contracts.

Yang Ming is extending waivers on fees related to import containers lingering at marine terminals because of congestion, which truckers claim is due to empty boxes.

In reporting a $4.6 billion profit in 2021, Zim Integrated Shipping Services warns shipping disruption could bleed into 2023 but it expects some spot rate normalization in the second of half of this year.

The move by TS Lines to link with CULines on the Asia-Europe AEX service marks another step by intra-Asia-focused carriers to expand into east-west trades.

Drayage provider NEXT Trucking is piloting a peel pile program in Southern California that links vessel stowage at origin with quick unloading of containers at warehouse destinations to narrow total transit times for shipments.

US imports are expected to be at near-record levels this spring and summer, with consumer demand remaining strong and supply chain bottlenecks showing no signs of improvement, retailers said in their latest forecast.

PIL’s deal for four 14,000-TEU vessels is the carrier’s latest move to rebuild its fleet and network after staving off near-bankruptcy a year ago.

Vessel bunching at Asian and US ports and congestion in the interior US are severely restricting vessel capacity in the eastbound trans-Pacific, pushing service contract rates to record levels with no relief in sight this year.

CMA CGM has followed the industry trend of reporting extreme profitability for 2021, dramatically paring down debt while making several billion-dollar acquisitions.

Zim Integrated Shipping will offer the first US East Coast expedited vessel service as customers clamor for ways to avoid US West Coast congestion.

Sea Lead Shipping joins other smaller, independent carriers stepping into the Asia-US East Coast trade lanes thanks to strong demand and high rates.

P&O Maritime Logistics is moving into the container market to provide additional capacity in lower-volume, higher-frequency routes.

The fast-evolving sanctions against Russia have created growing uncertainty in shipping circles, with thousands of inbound containers that can’t be delivered likely to further clog Europe’s already-congested terminals.

Upcoming labor contract negotiations between dockworkers and terminals on the US West Coast were on the minds of carrier executives at TPM22.

FMC Chairman Daniel Maffei told TPM22 that container alliances appear to be responding to market demand and not unfairly jacking up ocean freight rates.

More carriers are launching intra-Asia services to take advantage of surging freight rates in the region.

While the schedule integrity of ocean carriers in January improved slightly to the West Coast, performance declined slightly to the East Coast and hit an all-time low globally.

Ocean schedule reliability shows no signs of improving as two key services out of India plan to skip major ports in Europe and the US amid ongoing global congestion.

CMA CGM, the Port of Los Angeles, and US dairy exporters are touting the availability of more container capacity and improved schedule reliability.

Reduced trans-Pacific connectivity has become particularly acute for shippers in South Korea and Japan who have seen carriers omit calls or drop sailings as they seek to maintain or restore schedule reliability on mainline services.

Asian imports set a new record in January due to the pre-Lunar New Year rush when factories close for the holidays.

Industry sources in South India say average feeder fees to Colombo have doubled in recent weeks, with carriers blaming port slowdowns and rising fuel costs.

Two years after the pandemic reached US shores, logistics managers at US companies that import from Asia are in the toughest service contract negotiations of their careers, according to conversations with more than a dozen importers.

The Pilot Freight acquisition gives Maersk not just last-mile delivery capabilities, but the “middle-mile” backbone needed to speed freight to the final mile.

Alliance partners Mediterranean Shipping Co and Maersk line will end their slot-chartering arrangement with SM Line on their Asia-Pacific Northwest service as the 2M lines have sufficient cargo of their own to fill the slots.

THE Alliance will split a “pendulum” service that swings from Asia to Europe and the US West Coast, with Hapag-Lloyd saying it could respond to demand more easily by adding vessels to two new services rather than through one existing service.

Brazilian shippers continue to face challenges with virtually no reefer containers available for spot cargoes and driver shortages affecting onward shipments from US ports.

Maersk introduced a new vessel service from Asia that will call on the US Gulf and East Coast and plans to provide its first direct service from Indonesia to the US.

Paris-based visibility provider Shippeo is eyeing North America as it seeks to expand the competitive landscape of the fierce global predictive cargo visibility market.