Newsletter – June 16, 2022
OCEAN FREIGHT UPDATES
Indian shippers brace for higher rates as GRIs and peak surcharges loom
Indian exporters and freight forwarders should not expect freight rate levels to plateau or slide any time soon, as fresh general rate increases (GRI) are on the way.
MSC will impose a $1,500 per container GRI for Indian shipments to the US and San Juan (Puerto Rico) from 4 July, as well as a peak season surcharge (PSS) of $500 per box on its India-US connections, sending current average rates further northwards as the supply side looks set to tighten in … Read more here (login required).
Los Angeles port: Peak season coming soon, strong imports ahead
Despite surging inflation and waning consumer confidence, Port of Los Angeles Executive Director Gene Seroka sees America’s import boom persisting in the months ahead.
“While we’re all cost-minded and we feel it at the pump and at the grocery store, we’re going to continue to buy,” he predicted at a press conference Tuesday, pointing to Americans’ more than $2 trillion in savings and $1.2 trillion in revolving credit. Read more here.
Ever Given insurance claims to top $2bn
French reinsurer SCOR has estimated claims relating to the 2021 grounding of the Ever Given containership in the Suez Canal will top $2bn.
The six-day blocking of the canal in March last year was shipping’s most high profile accident this century. Read more here.
Antwerp braces for further strike action on Monday
The Port of Antwerp-Bruges, one of Europe’s largest ports, is braced for another strike, coming at a time where the Belgian facility is suffering from unseasonably high congestion.
A national strike has been scheduled for Monday by many trade unions demanding better pay, better social dialogue and investment in the public sector. Read more here.
GROUND AND RAIL FREIGHT UPDATES
CN employees threaten to strike starting Saturday
Some 750 Canadian National Railway (CN) employees are threatening to walk off the job beginning on Saturday.
The company announced Wednesday evening that it received a 72-hour strike notice from the International Brotherhood of Electrical Workers (IBEW), which represents about 750 employees in Canada. Read more here.
Korean truckers end strike – but supply chains remain seriously disrupted
Following an eight-day strike, South Korean truckers went back to work today after hammering out an agreement with the government just before midnight.
The source of the discontent was the Safe Trucking Freight Rates System, which is due to expire in December, but citing rising fuel costs, the truck drivers wanted it to be extended. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
New federal bill would compel key industries to bolster cyber security — or pay a price
The federal government has tabled a bill that would allow it to compel companies in the finance, telecommunications, energy and transportation sectors to either shore up their cyber systems against attacks or face expensive penalties.
If passed, the Act Respecting Cyber Security would give the federal government more control over how private companies in critical industries respond to potential attacks. Read more here.
Order lead times plummet as inventories grow and demand uncertainty soars
Order lead times — the time between order placement and expected ship date for containerized imports — have dropped 23% since late April as supply chain managers are forced to change their strategy in an economic environment that is once again in a transitional state.
Last week, Target reported that it had essentially too much inventory on hand and needed to “right-size” its stock. This was an inevitability for many retailers who are struggling to accurately predict what the consumer will do in the post-pandemic environment. Read more here.