Multimodal network news digest - Issue #16

The German government has been putting a lot of worry into COSCO’s ambitious acquisition of 35% shares of the Container Terminal Tollerort. The facility is managed by HHLA. However, it has been announced that COSCO will not take over either the port of Hamburg or HHLA and the terminal will remain open for all customers.

In China, shippers are underperforming on minimum quantities when it comes to capacity, so carriers have to severely discount cargo. This “underselling” has resulted in a very destabilized market. Plummeting rates are not contributing to improvement either: Asia-US west coast component dropped by a massive 15% to $2,209 per 40ft. Despite the challenges, the Chinese economy still managed to grow by 3.9% in Q3, but the authorities admit that the momentum has been lost. With zero-COVID tolerance policies, tightening shipping space, and looming global recession the situation will not improve most likely. 

The Port of LA which used to hit record numbers in volumes just several months ago is now experiencing a 20% decline in volumes in comparison to the same period last year. Experts name this result disappointing. 

In order to avoid the collapse in 2023, experts advise shipping lines to manage capacity by selling older ships for demolition or reducing the delivery of new ships. Idling vessels can also improve the situation, there is already a growing number of vessels that do not perform any commercial activity. Another way to reduce capacity would be to sail slower. Experts also bet on blank sailings as one of the ways to match the demand. In addition, it is essential to keep in mind congestions that will not fade away in 2023 and be prepared for delays. 

 Strikes:  

RMT union in the UK plans to continue the strikes, so the discontent on the British railway network is destined to prolong. England, Scotland, and Wales will be affected by the disruptions. Northern Ireland will not experience them. 

While some companies at the Port of Mobile have been having the best throughput years, it may change quickly because of the looming strike from more than 800 dockworkers. 

Transnet and South African United National Transport Union reached a three-year wage agreement, so the restrictions on the port’s operations (due to the ongoing strike) have been partially lifted. Workers are coming back on duty. 

Services & projects

• Neptune Logistics Group has deployed the multipurpose vessel Neptune Line that will shuttle between Nansha and Vladivostok.
• KTZ – Freight Transportation will increase the costs for cargo transport and empty wagons in domestic, import, export, and transit traffic by 14,67%. The stability that was disrupted by the malfunction of three cranes in Altynkol has been restored. 
• Kazakhstan will develop Aktau Port by constructing a new $28.9 million container hub by 2025.
• DHL is establishing a new intermodal service that will connect the port of Genoa, in the Italian northwest, with the Padua Interport, in the northeast, going in favor of rail rather than of road. 
• China has launched a new intermodal service connecting it with Africa via Europe. The rail part of the service will run between Chengdu with Hamburg, via the China-Europe Railway Express. Then goods are shipped to Casablanca by sea.
• After ten years, Medway will finally launch a new rail connection between Portugal and Germany. 
• SeaLead container ship in the revised Asia-East Coast container service began calling the Jacksonville Port Authority. 
• Maersk and Freighters International joined forces in opening a consolidation center in Modjo Dry Port to optimize apparel and lifestyle customers’ supply chains.  
• CMA CGM has established a new rail service to serve Gaziantep located in Turkey that will run every Monday and Thursday.

Other

• Transfar Shipping is contemplating ordering five newbuild 8,000 teu vessels for its Ali Express transpacific service.
• The handling of containers and bulk cargoes at both the Chittagong and the Mongla seaports is suspended because of the severe weather conditions. 
• Despite the fact that goods trade between the EU and UK more or less recovered in the past months, following Brexit, the trade plummeted by 20%. Ireland has experienced the largest reduction in trade with the EU, meanwhile, its volumes with the UK continue to remain stable. 

These are only several changes that occurred in more than 250 bn freight rates across 25 million routes with more than 1 million market players. Want to share some news about your company, services, and routes? Just post them on MAXMODAL, a multimodal network that digitally connects routes and rates worldwide to automate sales and operations across container transportation & logistics industry. Join to innovate.