With the peak season approaching, more uncertainties arise. As some ports experience minor improvements, new challenges make it doubtful that stability is looming over.

Despite Brexit and the post-pandemic reality, not all ports experience too many difficulties. In particular, the Port of Antwerp’s TEU throughput grew by 4.3% year-on-year (YoY), according to the recent data. Antwerp has big potential to become a getaway between the EU and the UK. However, it will take a while to happen, as the sky is not really clear above the port – Maersk and MSC temporarily omit the Antwerp call for six weeks.

Ocean lines have become targets of new allegations. Ocean carriers are being accused of forcing shippers to purchase extra products, such as customs clearance and insurance to increase their prospects of shipment. Without buying these add-on products, shippers would struggle to get their cargo booked which is a low blow for small ones. 

It may seem that Brexit has only made the situation more perplexed, however, for the China-UK route it has offered the development of Kaliningrad as a transhipment point. It allows bypassing EU, thus avoiding additional declaration and controls, and proves to be faster. It is not the only alternative offered to the rail market. If the situation with Belarus does not improve, the Zamość terminal near the Polish-Ukrainian border will be a great point to respond to the growing number of Europe-China trains. The expansion of it implies the construction of a new area with more capacity. 

Will rail prosperity concern the UK in the light of the upcoming peak season? Experts are uncertain as they call the government to access the situation critically before it takes summer recess. So far, the officials have identified three key strategies as a part of the Integrated Rail Plan or the Transport Decarbonisation Plan. 

Meanwhile, the UK ports are also confused about how they will operate and be governed, several months after eight winning bids were announced for the new economic zones. They were considered a key imitative for the post-Brexit recovery as these zones are generally exempt from customs duties.

The truck shortages have revealed another pain point – the workers have been underpaid for long and drivers have experienced unsociable hours linked to container work and numerous other challenges. The government’s attempt to resolve it has failed. Even for the UK alone, data shows that the full scale of the driver shortage may not be realised for some time, thus drivers simply leave/move to warehouses.  

On the way to a sustainable future, the EU is to announce a revision to environmental policy that will include aviation and maritime sectors. The intention itself already demonstrates that authorities recognize the fact that climate has no borders and all sectors have to be involved.

The Ever Given saga has led to devastating consequences for anything but the canal’s revenues that despite the hardships have reached a record US$5.84 billion in its financial year (FY). Additionally, the canal authority said that 9,763 vessels passed through the Suez Canal during the first half of 2021, increased by 217 ships compared with the same period last year.

The Rhein-Ruhr-Rail Connection (3RX) will welcome a new study on the feasibility of it in the fall. The updated SCBA will be broader in scope than the previous SCBA with Belgium taking the lead. 

The notoriously famous story of sinking of Pearl-X got a new span – X-Press Feeders has made an initial payment of $3.6 million to the Sri Lankan government is continuing to contribute to the clearance of the water. Discussions are ongoing on the payment of further claims. 

Tinsley, the marshaling yard shared Sheffield and Rotherham is seeing a resurgence of traffic. The point will prove a further opportunity to move more goods by rail and the associated environmental benefits.

German CargoBeamer taps into multimodal development and sets its first full multimodal terminal into operation amid to build the new brand of road-rail combined transport to France and Northwest Europe.

https://youtu.be/kzP7zdglRWQ

Shippers fire up their concerns as government becomes more determined to crack down the existing monopoly. A new battle ground has emerged?

As carriers are expected to enjoy rapidly growing profits at least through 2021, anticipating surpassing $100 billion for the year, executive regulations are looming over the horizon. A new order has been signed by Joe Biden amid to crack down on anticompetitive behavior in rail and ocean shipping industries by investigating and punishing unfair conducts. Federal Maritime Commission backs this decision. However, it is uncertain whether the government’s hand can regulate the current situation so easily. In response to the announced initiative, the liner lobby group has voiced its concerns about whether the administration is focused on the right priorities. The group and supporters of the opposite from the president’s opinion believe that the problem is rooted in unprecedented demand that has to be normalized first. Some have also commented that the new regulation is only going to create smoke without fire. It is shaky grounds especially in the light of the existing obstacles. Even if some shippers have managed to negotiate excellent rates with ocean freight carriers, they cannot take a finger off the pulse, as now there is a market trend where carriers are increasingly prioritizing high-paying cargo over contract rates with anyone other than their biggest customers. Meanwhile, the demand that is seen as one of the causes of the current crises is not expected to go down shortly – imports continue to break records. For instance, U.S. ports covered by Global Port Tracker handled 2.33 million TEU in May 2021.

At the same time, ocean freight spot rates have surged over the last week, with average rises close to 5% across the eight major East-West trades. One of the reasons behind the increased numbers is the competition among shippers fighting for “a place in the sun”, cargo slots. Experts note that a large retailer fighting a small retailer in the same line of business could use a freight rate that is $5,000 lower than its competitor even if the larger one is still paying far above what it was paying last year.

 Antwerp has become a new pain point, suffering the knock-on effect of terminal and quay congestion. Nevertheless, according to industry players, the overall situation at North Europe’s container hubs is improving. All the recent challenges have proved the importance of port workers who have been working under all these pressuring conditions. While some blame quarantine and the secondary effects of Covid-19 vaccination on workers, together with the upcoming vacation period leading to further disruptions, others argue that dockers should never be considered a problem. 

If the situation with Belarus becomes more perplexed, the Zamość terminal near the Polish-Ukrainian border can become a possible alternative for Europe-China trains. It is to be expanded to respond to the growing number of trains passing through this border. The station is considered valuable for trains on the New Silk Road and rail transport within Europe.

The transpacific tradelane has gained a new player – China United Lines with service out of Shanghai to Los Angeles with five chartered ships. The decision is motivated by the government’s request to add more capacity to long-haul routes.

Levi’s shifts its cargo volumes due to supply chain disruptors. The company now shipping most of its products through the U.S. East Coast amid prolonged delays and struggles in Long Beach. The decision to divert freight was one of many actions Levi's supply chain team to mitigate risk. 

A collision of the Ultra Large Container Vessel operated by Ocean Network Express has occurred with a bulk carrier in the Straits of Malacca on 11 July. Nobody was hurt; however, the details are still being investigated.

https://youtu.be/VJH5W0ijdWc

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Is the shipping monopoly close to an end? It might not be that easy. 

Although consumer spending is the first factor to recover, the strained supply chains of the US continue experiencing low inventory levels consequently driving exceptionally strong freight imports. Experts state that even if the current record rates of retail spending ease in the coming months, the existing pattern will likely maintain the pressure on the capacity of the container shipping market. With the rates being guided by the unprecedented crisis in the industry, bars are elevated artificially, and the US government is planning to end these manipulations. FMC is calling on the Justice Department to investigate and fine ocean carriers charging shippers unreasonable rates and fees. The decision was not welcomed by some claiming that the matter was about weak pre-pandemic demand not incentivizing building new ships and had nothing to do with industry consolidation. The measures undertaken in the future will be focused on increasing competition in liner shipping. 

While the Stares are only planning to address the issue of marine monopoly, South Korea is deeply into it. However, Korea Shipping Association has joined the Korea Shipowners' Association in protesting the hefty fines the KFTC imposed on 12 local liner operators for fixing rates. The decision is supported by the statement that the fine fines will cause a heavy financial burden that could cause a second Hanjin Shipping crisis that the country had experienced in 2016. 

The lack of available tonnage has led to a slowdown of chartering activity. Fewer charterable ships mean carriers must buy vessels secondhand to increase near-term exposure to freight rates, and experts believe the shortage can be here to stay. Non-operating owners have been placing their vessels on multiyear charters, which means that there is a significant portion of the NOO fleet that will not be available in the charter market for years. In addition, in the light of the current context, more ships trade hands – values of ship assets have continued to rise across the board.

A major disruptor, wildfire in western Canada, is causing continuous delays through the supply chain to the Port of Vancouver. The rail challenges, where the railways provide on-dock service, also come at an inopportune time for the Port of Vancouver as it contends with a surge of container traffic. 

Meanwhile, some of North America’s ports indulge in a major expansion. In particular, at Port Houston and the Houston Ship Channel. Two of the projects, totaling $99 million, are for the port’s expansions at its Bayport Container and Barbours Cut terminals. Quebec’s plans for a $624m container terminal at Quebec City have run aground due to the environmental review. The federal government has blocked the project pushing to look for alternatives. The ports and carriers that are part of the South Atlantic Chassis Pool are teaming up to increase and upgrade the pool by adding up to 50,000 new high-tech intermodal chassis over the next 18 months. With companies going on a buying spree of newbuildings, Yang Ming is planning to follow suit and make orders of new container ships so far awaiting deliveries of nine 11,000TEU ships. For the time being, the Port of New York and New Jersey have another increase for total container volume in May, while rail volume broke its all-time monthly record. The total volume was 796,693TEU, which translates to a 48.2% increase. It is followed by the increase in imports and export empties.  

There is a new player in the development of the New Silk Road – Helsinki. Its position is a great location that can help it to become the next Eurasian gateway to Europe. It is already fulfilling the role of a hub having launched connections to Suzhou, Jinan, and Jiaozhou in addition to existing services. 

To address the problems that the shippers are facing in shipments of outbound containers from Chittagong, the government of Bangladesh has formed a taskforce. It has requested to arrange a common carrier agreement that may help to lower the export backlog of 14,000TEU of laden containers, which are lying at the ICDs.

The Port of Long Beach reports a 20.3% increase in moved TEUs in June 2021 that was driven mainly by imports and empty containers at the port. Empty containers moved through the port jumped 36% to 250,249 TEU. The authorities are anticipating e-commerce to drive much of the cargo movement through the rest of 2021 as retailers plan for a busy summer season. Beibu Gulf Port in Guangxi Zhuang Region also saw its TEU throughput increase by 22.29% year-on-year in H1 2021. The company has attributed the growth to the accelerated construction of the New International Land-Sea Trade Corridor.

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In the race for solutions in the rapidly changing market, it is particularly difficult to make decisions that will not make resonance and controversy. At least, the UK knows all about it. The pressure is increasing across all modes – even the promising one, rail.

To address the long-lasting drivers’ shortages, the UK government has decided to temporarily extend working hours for drivers and smaller hauliers. The move has faced a mixed reaction with some claiming it gives flexibility and others arguing that the initiative puts even more pressure on the already exhausted drivers. The authorities are also being involved in the discussion with Rail Delivery Group on the support for shifting freight from road to rail for a greener economic recovery. The post-crisis era will bring new congestion to roads, so the supporters of the shift believe that transition to rail will be the winning strategy. 

However, the European modal shift is facing some challenges. In the light of recent sanctions imposed on Belarus by the EU, the country has announced it will not wait for long to pay back. The looming threat of Belarus potentially banning the transit of EU products heading to China will hit such companies as Lithuanian Railways the most. Additionally, the missing part on the railway corridor from Russia to India risks remaining unchanged for longer as the Iranian government is hoping for other infrastructure through Armenia and Azerbaijan to take the reign in development. 

As for ocean freight, the reduced services will lead to the decreased revenues with experts predicting that the container volumes over the coming month would be around 20% lower. Demand is declining in large consumption regions such as Europe alongside a considerable scale of void sailings; however, overall, the maritime industry is doing whatever it takes to stay afloat. 

Moreover, it does not neglect sustainable development. Having joined the Hydrogen Europe, the Baltic Ports Organization has become a part of the group of almost 300 companies and national associations working towards decarbonizing the maritime sector. Hydrogen and hydrogen-based fuels have been recognized as one of the main means for achieving this objective. 

DP World’s Jebel Ali terminal in the United Arab Emirates was struck by an explosion and subsequent fire on July 7. The source of the blast was a small containership preparing to dock at the Jebel Ali container terminal. The satiation is still being assessed, but operations are running at 100%.  

Freight markets continue to be severely pressured across the ocean, air, and rail modes. For the ocean, the Q4 of 2021 has been announced the earliest potential period for slight improvements. In turn, air freight will soon have to deal with increased passenger flow that will affect capacity availability and rates. Despite its rigorous development, the situation on the rail frontier is still worrying due to the congestion along the Silk Road railway affecting schedule reliability and wagon shortages at crucial border points on the route between Belarus-Poland-Germany. 

A long-standing collaboration between Global freight forwarder body FIATA and the International Union of Railways has been facilitated by a Memorandum of Understanding regarding safety and security-related topics, digitalization, sustainability, and Eurasian corridor developments. It commemorates the joint effort of freight forwarders, rail transport domain around the world, including manufacturers, etc. 

DP World enhances its capabilities in Africa by making an offer to the African-focused logistics solutions provider, Imperial Logistics, to acquire all outstanding shares of the company for $ 890 million. In case of success, it will give DP World a strong, attractive footprint.

Expansions in the air market are also on the roll – Lufthansa Cargo is significantly growing its network with new opportunities. Amid to capture more of the e-commerce market, it is in the process of converting two A321s to freighters for intra-European operations. In addition, the company’s interest to drive its market capacity is guided by the decision to widen its business with a new carrier, Eurowings Discover.

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