Newsletter – May 14, 2021
OCEAN FREIGHT UPDATES
Hapag-Lloyd rocks already hard-hit transpac shippers with a $3,000 GRI
Hapag-Lloyd has just announced a $3,000 per 40ft GRI on Asia to the US and Canada services from 15 June.
A year ago, the Shanghai Containerized Freight Index (SCFI) US west coast component stood at just $1,686 per 40ft – 12 months on, and shippers are paying up to $14,000 to ship the same cargo on the same route in the same ships.
Although today’s Freightos Baltic Index (FBX) reading for the route jumped 9.5%, to $5,516 per 40ft, there is virtually … read more here (login required).
Ex-Asia ocean freight challenges intensify
Shippers seeking ocean freight capacity from China and other parts of east Asia are seeing the already challenging conditions further intensify this week, with backlogs of bookings, rising rates, and capacity and equipment even more scarce than in previous weeks.
Freight fowarders in Europe have reported that the ocean freight market has worsened markedly in recent weeks, as the aftermath of the Suez Canal blockage has continued to have an impact on port congestion, capacity, container availability, and pricing. Read more here.
Port of LA lengthens ‘unprecedented run’
The Port of Los Angeles continued its record-setting streak, posting the busiest April in its 114-year history.
“It’s truly been an unprecedented run here in LA,” Executive Director Gene Seroka said during a media briefing Thursday.
The Port of LA handled 946,966 twenty-foot equivalent units (TEUs) in April. “That’s a 37% spike compared to last year, when global trade dropped with the onset of the pandemic,” Seroka said. “This was by far the busiest April in the port’s 114-year history, outpacing the previous record set just back in 2019 by a hefty 29%.” Read more here.
Record turnaround for HMM in as first-quarter revenues and profits soar
South Korean carrier HMM today reported its best-ever quarterly result: an operating profit of KW1.02trn ($903.4m) that followed a KW2bn operating loss the year before.
This came on revenues of KW2.4trn, up 85% on the KW1.3trn booked in the same period last year.
However, it noted that due to the IFRS 16 regulations, its net profit for the quarter was KW154.1bn, compared with a loss of KW65.bn last year. Read more here.
GROUND AND RAIL FREIGHT UPDATES
BC posts off-dock drayage regulation recommendations
The Office of the British Columbia Container Trucking Commissioner (OBTCTC) has completed its recommendation report on off-dock drayage in the Lower Mainland and has published the report on its website.
The six recommendations focus on regulatory scope, rates and enforcement. Read more here.
News Alert: Kansas City Southern declares CN proposal as ‘superior’
Kansas City Southern (NYSE: KSU) has made a decision: it is leaning toward merging with Canadian railway CN (NYSE: CNI).
Upon receipt of a revised acquisition proposal from CN, Kansas City Southern (KCS) has decided to deem that proposal as “superior.”
By accepting CN’s proposal, KCS would have to break up proposed merger plans between itself and CN’s rival Canadian Pacific (NYSE: CP). CP has said it will not counterbid. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
IBM says chip shortage could last two years
Its President Jim Whitehurst told the BBC it could be “a few years” before the situation improves.
Many firms have seen production delayed because of a lack of semiconductors, triggered by the pandemic.
The shortage has been exacerbated by surging demand for TVs, phones and gaming consoles while consumers are stuck at home. Read more here.