Newsletter – March 16, 2023
OCEAN FREIGHT UPDATES
Box lull sees change in global container flows
The lull in box volumes is resulting in falling congestion and also in changes in container flows as reflected in the Container xChange Container Availability Index.
The index, which measures the proportion of weekly import to export flows at ports around the world, shows that the share of imports from the total volumes handled at the ports of Los Angeles and Long Beach, America’s two largest gateways, has fallen 10% compared to last year. Read more here.
Number of scrubber-equipped vessels to grow despite drop in fittings last year
Despite a significant drop in the number of installations, the share of scrubber-fitted vessels is expected to increase in the coming years.
BIMCO reported 399 onboard installations last year, a 24% decrease year on year, with scrubbers now installed on 13% of bulkers, tankers, and containerships. This percentage is set to rise, as 17% of ships currently on the yard’s books are expected to have scrubbers installed. Read more here.
PSA Mumbai dismisses congestion, productivity slowdown reports
PSA Mumbai (BMCT), the new terminal operator at India’s Nhava Sheva Port (JNPT), has denied reports that it is operating at a slower pace, as the trade faces supply chain challenges due to the berth closure at APM Terminals Mumbai, also known as Gateway Terminals India (GTI). Read more here.
Declined box traffic in February at Port of Long Beach
Cargo movement through the Port of Long Beach (POLB) fell to 543,675 TEUs in February, down 31.7% from the same month last year.
In particular, imports declined by 34.7% to 254,970 TEUs and exports decreased by 5.9% to 110,919 TEUs. Additionally, empty boxes moving through the Californian port were down 38.3% to 177,787 TEUs. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Regulators OK Canadian Pacific-Kansas City Southern merger
The Surface Transportation Board has approved, with conditions, Canadian Pacific’s plans to merge with Kansas City Southern, paving the way for CP to take control of KCS as early as April 14.
The conditions include an “unprecedented” seven-year oversight in which CP (NYSE: CP) and KCS will provide extensive data to STB on issues raised during the approval process, including whether the merged company is preserving efficient interline operations at affected gateways, as well as ensuring fluidity and sufficient capacity in traditionally congested areas such as Houston and Chicago. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
2023: can businesses cope with another year of supply chain instability?
2022 has been another challenging year for supply chains, with the impact of Brexit and the pandemic still being felt, alongside new challenges in the form of the conflict in Ukraine and rising inflation.
Unfortunately, 2023 is likely to bring more of the same, as geopolitical issues continue to cause disruptions and economic pressures are predicted to worsen. Read more here.