Services that called St. Peterburg iwere operated by COSCO , Maersk , MSC and Samskip , Containerships (CMA CGM), Hapag-Lloyd and X-Press Feeders, stopped all their connections. The number of visits is likely to go down even further when all vessels that were already on their way have discharged their cargoes. Not all carriers are likely to withdraw all their services, as some , like Unifeeder, continues to transport containers . Fewer ships are also visiting Russia’s Far East ports, but the reduction there is much more limited. According to HMM, however, volumes in this trade have declined so much that it is no longer worth calling there. Therefore, it will stop serving Vostochny and Vladivostok (via slots form FESCO). APM Terminals has decided to sell its shares in Russian port operator Global Ports, in which it ultimately holds 30.75% and which it bought in 2012 for USD 173 million. Global ports is involved in four Russian container terminals, FCT and PLP in St. Petersburg, ULCT and Vostochny Container Terminal, and is a partner in Multi-Link Terminals, which operates facilities in the Finnish ports of Kotka and Helsinki.There are two more European terminal operators involved in Russia. These are Eurogate, in Ust-Luga Container Terminal, and MSC’s Terminal Investment Limited, in CTSP . They have so far not disclosed plans for their Russia possessions yet.

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Providers’ freight rates have been updated on routes China- Europe, Japan, and the Middle East. Please sign in/up to check how competitive your rates are, click «book» to plan your shipment ahead, or push a «chat» in case of any questions. MAXMODAL is a neutral digital multimodal network aimed to automate your operations and boost your sales.

Chinese ports are under lockdown again and with the military conflict between Russia and Ukraine, the market is entering another coil of uncertainty and turbulence. 

● If it seems like the container market has already seen it all, there is another turmoil to get ready for. Container movement and freight rates quickly reacted to the consequences of the Russian-Ukrainian conflict, and now they are set to react to the lockdown in China that was imposed in 19 provinces. Experts predict that a week-long shutdown of Shenzhen can cause far more disruptions than the notorious Suez crisis because the demand is expected to keep growing. There are also fears that China’s strategy of Covid elimination will be extended to other mainland cities. Due to the reduction in workforces as people are ordered to stay home and limited truck availability, ships are starting to queue at the major Chinese ports. Knowing how they are interconnected with the rest of the international network, the lockdown is going to affect major directions. In particular, India has already reacted. Indian shipping lines are struggling with labor shortages, slowing operations, and vessel turnaround as well as with container shortages because of the lockdown in China. If the situation does not improve, more congestion will be on the way. The importance of Asian presence is visible not only when it comes to congestion. It is reported that Asian shipowners have become the dominant force in global shipping.

●      The disruptions caused by Covid and the military conflict are already making Europe to US trade run behind. Sanctioned Russian transhipment cargo from Asia has nowhere to go and keeps piling up. Meanwhile, a shortage of empty containers in Europe results in less equipment available for US exports and carriers that are unable to fill their ships.

●      In order to provide sufficient support in medical products, food supplies, and so on for Ukrainian refugees, the terminal in Odesa has started releasing import containers for consignees. Despite the container crisis, many inland storage facilities in Ukraine are offering free storage and cargo-related operations to support civilian needs. While the ocean sector remains highly disrupted, Ukrainian railways show signs of becoming a key player in increasing its exports to the EU.

●      More restrictions have been placed on the import from Russia to the US following Russia’s ban to export over 200 products including medical and tech equipment. The US is now prohibiting imports of alcohol, seafood and non-industrial diamonds from Russia. It is also not allowed to export luxury goods to Russia. The measures are destined to pave a way for higher tariffs on a wide range of goods. The EU adds up to sanctions by putting an import ban on Russian steel and iron, a ban on investments in oil companies and the energy sector, and restrictions on the export of luxury items including cars with a value of more than 50,000 euros. In the meantime, HMM suspended its services to the Far East of Russia, although the company has stated that it is due to the market conditions. Market conditions are indeed perplexed with a variety of challenges. Poor schedule reliability and continued delays are fueling the trend of companies starting to charter ships by themselves.

●      The crisis is going to be visible across all transportation modes and European hauliers are beginning to worry. In addition to the problem of high diesel prices, another one has appeared. Many automotive components are manufactured in Ukraine and supply disruption will affect the production of trucks. At the same time, the aftermaths of the conflict spill over rail freight traffic between Europe and Vietnam has been suspended for the time being. The crippling increase of costs and drops in sales are happening in the US too, the agricultural sector has become the one that has felt them most prominently.

●      The unprecedented chaos in global fuel prices has forced big players to take matters into their hands. MSC is going to review its fuel surcharges fortnightly for all spot and quarterly contracts on Asia trades.

●      Major cut off of flights has resulted in some companies deciding to significantly reduce their staff. In the case of Volga-Dnepr Group, it has grounded almost all their aircraft and even the ones with European certification can no longer operate. In response to the EU shutdown, Russia has allowed airlines that lease foreign aircraft to fly domestically which has caused fury in European lessors.

●      New routes alert: there is a new multimodal link from Turkey to Germany via France commemorating the increased interest in the Middle Corridor. Spain is about to launch the construction of a railway line to the port of La Coruña.  Maersk is going East as well by announcing a call at the King Abdullah Port. Moreover, it has revealed a new cold storage facility in Houston for imports and exports. Also, Maersk is staying true to its green agenda as it becomes the first shipping line that has signed Amazon’s Climate Pledge initiative demonstrating that the shipping sector understands its responsibility and role in cutting CO2 emissions. 

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I’m Margarita Rodriguez from 格瑞丰国际货运代理有限公司 (Great full International Freight Forwarding) which provides maritime and air transport services to different countries in America, Europe and Asia, as well as storage service in China. The certification C-TAPT, NVOCC: MOC-NV0684, WCA Membership: 102390, the recognition of the Chinese Ministry of Communication and many satisfied customers can guarantee that our company complies with all the necessary security standards to provide excellent services. 

Hoping that my company will be of your interest a I am available for your further assistance

• Email: vivian@wmmqy811815.wecom.work ////  1633373109@qq.com 

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MAGO202

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Container freight rates of various providers on routes China-US, China-Canada, as well as India to the European Union, have been updated. Please sign in/up to check how competitive your rates are, click «book» to plan your shipment ahead, or push a «chat» in case of any questions. MAXMODAL is a neutral digital multimodal network aimed to automate your operations and boost your sales.

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The Duisburger Hafen immediately ceases all business activities in Belarus. This also includes its stake in the Great Stone Industrial Park. 

Who would have thought but in contrast to the predictions that demand will stay elevated, it has started softening, at least on the Asia-Europe trade line. 

●      The battle for capacity has been replaced with EXCEEDING capacity that carriers are forced to take care of. The first to react among the big players is the 2M alliance by blanking its scheduled loop sailings for the next two weeks. Spot rates, in turn, have also shown a steady erosion. After hitting another high of $15,000 per 40ft at the end of January, they now plummeted to $12,685. However, on the transpacific route, the situation does not change and keeps living up to predictions about the increased demand and tight capacity. 

●      It is true that every sector on the market has become extremely sensitive to cyberattacks, and MAXMODAL was covering this subject in the past updates. Meanwhile, the notorious trend continues and many fear that in the current context, the logistics chain would be more likely to be impacted by the fallout from cyber-warfare in Ukraine. Among the expected targets are the energy, finance, and operational technology sectors. Experts warn that the impact of the potential cyberattacks can be even bigger than those of 2017 since this time, there is congestion, vessel schedule reliability remains extremely low, and everyone is in the same boat. One attack at a vulnerable target and the domino effect may fall onto many other players. What is also damaging the hope of recovery is the skipped calls to ports. Companies have been using them as a way to manage the capacity of their heavily utilized fleets.

●      Russia’s participation in the global trade is too big of a fish to exclude so easily, thus in order to ensure more or less stable partnerships on which so many things from workplaces to delivered goods depend, some countries have started searching for alternative payment ways to ensure shipping’s access to trade. One of them is India where shippers fear already surging rates and potential damage their activity will experience if the sanctions are prolonged. India is one of Russia’s railway partners as well thanks to the important North-South Transport Corridor. The corridor goes through Azerbaijan which recently has upgraded its railways on this route connecting India to Russia.  This corridor has a lot of potential as an alternative to the sea shipping route via the Suez Canal. On the contrary, Bangladesh has suspended its shipping to Russia which has resulted in piles of containers at the Port of Chittagong. Apparel factories are also under uncertainty as they do not know if the production for Russian buyers will continue which would be devastating for both sides since Bangladesh has annual trade worth US$1 billion with Russia. 

●      While some of the freight rates are going down, bunker prices have increased since the beginning go the military conflict between Ukraine and Russia. For the high-sulfur fuel oil, the index rose to $765.93/MT; low sulfur fuel oil has gone up to $1038.07/MT. Some of the companies are self-snctioning Russia and refuse to perform contracts with it, but as a result, they become exposed to contract damages and a big risk of breaching existing commitments.  

●      The New Silk Road, just like any other important route, has been experiencing a rather turbulent period. However, all the tension has had a positive effect as well. It is reported that congestion has dropped significantly since many companies are omitting Russia and Belarus. For a long while, transit times were more than 30 days, now it is less than 20 days, for example, to Poland. Consequently, new alternative transit routes did not wait long to appear. Germany bypasses Russia through Turkey for cargo from China. Does this commemorate the rise of the Middle Corridor? It is a matter of time, but for now, it has definitely gained its appeal for many western companies. 

●      In the meantime, Turkey has lost one of the facilities of its Ekol Logistics that has been destroyed during a bombardment in Ukraine. It covers a wide spectrum of transport solutions, and luckily, no was no casualties.  

●      Despite the difficult situation in Europe, there is still room for new services. At least in Asia. COSCO has announced the launch of a new Daily Express Service between Yantian International Container Terminal and Hong Kong. In addition, the company has celebrated the completion of the Cogent Jurong Island Logistics Hub in Singapore.  COSCO has also started a new initiative to build a green port network in the Iberian Peninsula around the ‘dual pivots’ of Valencia and Madrid. China is also pushing on the railway direction and is planning to introduce the second train of the China-Nepal railway service. But the competitors are on the way. Vietnam is developing a non-Chinese outlet for new containers with an annual capacity of 500,000 TEU. 

●      Sustainability has not left the radar of companies. Maersk has partnered with six companies in sourcing green methanol. The move aims for a faster transition to green energy and decarbonization. The UK has started SHORE green shipping project. Under it, the government is planning to develop the infrastructure to enable zero-emission technologies and power new-age vessels. When it comes to intermodal. Felixstowe breaks a new record in handling containers. Operators are looking forward to maritime work to further increase the ship handling capacity at the port.

An official spokesperson of APM Terminals, said: "A.P. Moller-Maersk, through APM Terminals, owns a minority stake (30.75 percent) of Global Ports Investments (GPI). GPI is an EU company which operates 6 terminals in Russia and 2 in Finland. GPI is listed on the London Stock Exchange. We have today informed our joint venture partners and GPI that we wish to take steps to divest our shares following the invasion of Ukraine and the operational challenges."