Newsletter: April 20, 2022

  • Newsletter: April 20, 2022


    Cargo diversions from Shanghai start to clog-up other major Chinese airports
    Airfreight diverted from lockdown-hit Shanghai Pudong (PVG) is clogging up China’s other major airports, causing a shortage of pallets for exports.
    Forwarders have singled out Zhengzhou Airport (CGO), in the central Henan province, as the hardest-hit, given the large amount of cargo diverted there from Shanghai. Read more here (login required).


    Colombo transhipment traffic could shift to India, adding to Sri Lanka’s woes
    The disruption in Sri Lanka’s Colombo Port is proving a double-edged sword for an Indian container trade already navigating Covid-induced supply chain dysfunction.
    According to a report by market researcher CRISIL, the crisis plaguing Colombo – the busiest intermediate port or transhipment hub for Indian cargo – could see some of the mainline services regularly calling shift to other ports in the region. Read more here. 

    Ever Forward refloated, will be inspected before returning to service
    At 7:12 on Sunday morning, the Ever Forward was refloated after being stuck in the mud in Chesapeake Bay for more than a month. A high tide, along with a month’s worth of work – dredging around the ship and removing 505 containers – finally brought success to the effort. Read more here. 

    Will Long Beach’s sunny spring be followed by stormy summer?
    The Port of Long Beach reported its busiest March ever and “the most active quarter on record as long-dwelling cargo continued to move out of marine terminals.”
    The port moved 864,156 twenty-foot equivalent units last month, up 2.7% from the previous record set in March 2021. Imports increased 4.7% year-over-year to 427,280 TEUs, while exports declined 18.3% to 114,185 TEUs. Empty containers “jumped” 10% to 321,691 TEUs, the port said in Thursday’s announcement. Read more here.

    MSC to launch direct China-Chittagong service to avoid delays
    Due to severe bottlenecks in regional transhipment ports, MSC is launching a direct service from South China to Chittagong.
    The new Bengal Service aims to bring relief to Bangladeshi importers from the congestion at the transhipment hubs of Singapore and Colombo. Read more here. 

    Carriers hunt alternative ex-SE Asia cargo as lockdowns hobble China ports
    As supply chain uncertainty at China’s key port cities drags on, shippers are hunting for alternative cargo options from South-east Asia.
    In Shanghai, where most of the city remains under lockdown, despite officials introducing a three-tier system to slowly ease restrictions, the container port – usually the busiest in the world – has been operating but the lack of trucking capacity has left supply chains in disarray. Read more here (login required).


    Trailer order backlogs stretching into December, ACT Research says
    Demand for trailers remains strong in the U.S., with February’s net orders reaching levels not seen since December 2020.
    The 37,900 units booked during the month were up 40% over the previous month and 28% higher than a year prior, ACT Research said, releasing preliminary numbers. The preliminary estimates tend to be within 3% of final tallies.
    Final figures are expected to show order backlogs stretching into December based on current production rates, the analysts said. Read more here. 

    Gas crisis plagues textile, spinning mills
    Production in spinning mills in this peak season has remained halted over the past six days because of a severe crisis of gas for overhauling at the Bibiyana gas field.
    Following the suspension in production, the millers are fearing that the export of garment items will be affected because of delayed supply of yarn to the export-oriented garment factories. Read more here. 


    Get ready for the next supply chain shockwave
    Concern is growing that the spread of COVID cases and city lockdowns in China will have massive downstream effects for global supply chains that could dwarf previous disruptions since the start of the pandemic.
    Last May, the huge Yantian container terminal at the Port of Shenzhen throttled down to 30% of normal productivity for a month to stamp out a handful of positive cases there. Hundreds of thousands of shipments that couldn’t enter the port accumulated in factories and warehouses, and many vessels skipped the port to avoid waiting seven days or more at anchor. It took weeks after the port reopened to clear the cargo backlog. Read more here. 

    Postal Service OK’d to slow parcel deliveries
    The U.S. Postal Service said Monday it has been greenlighted to slow some deliveries of long-distance parcel shipments, a move that allows it to use more surface transportation and reduce its use of airfreight. Read more here. 


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