Multimodal network news digest - Issue #17

The complicated state of the US-China relations is not expected to improve which will lead to increased volatility in supply chains, capacity availability, and transportation rates, less visibility into China’s economic activity, and reduced China-centric trans-Pacific trade. The Chinese and American semiconductor sectors will be more and more separated, analysts say. 

Shipping spot rates have started to drop at a slower pace which might be the result of the many recent blank sailings. However, it is still too early to say if the current situation is the rates’ new normal. Some say that the bottom is near, but the companies still need to brace up to level up their capacity management game. 

Strikes continue to negatively influence the industry. In the US, the Brotherhood of Railroad Signalmen rejected the proposed deal. This dynamic means uncertainty about a possible disruption of cargo flows through west coast ports. The import from Asia has already shifted to gateways on the east and Gulf coasts. 

As a result of the Liverpool strikes, vessel arrivals have dropped dramatically with dwell times still within tolerance and not posing a threat to the UK supply chain. Some experts see only a partial effect on the UK economy. Contrary to this opinion, there is already an example of a retailer who had to shut down its business following the strikes at Flexport.

German DB Cargo expressed the possibility of it starting to transport cannabis once it is legalized in Germany. Transportation of it by train is not a common thing in the industry. 

To remain afloat, companies will have to drastically scrape their vessels, otherwise, the risk of overcapacity is inevitable, experts say. However, despite these concerns, MSC remains determined in its plan to grow its fleet. The company is considering adding 8,000 teu utility vessels. 

Routes and services 

• Hupac will start a new shuttle train service between Belgium and Poland connecting the Combinant Terminal in Antwerp with the Metrans terminal in Poznan/Gadki.
• Since Azerbaijan and Turkey put a transport blockage on Armenia, the risk of Armenia being excluded from the developing transport links and respective investments on INSTC has started looming over the horizon.  
• China has acknowledged the ambition to become the number one investor in Serbia following its Belt and Road strategy. 
• COSCO has sold its shares in the construction of the new DGT in Germany to Duisburg port operator, duisport.
• Trying to subside COSCO’s ambitions in the Port of Hamburg, the German government has allowed the company to have only 24,9% of the shares of the Container Terminal Tollerort instead of the initial 35% that was discussed.
• PIL has introduced the PIL Intermodal Services across its existing network in Intra-Asia, Africa, the Middle East, Latin America, and Oceania.
• Maersk has introduced the inaugural flight of Maersk Air Cargo’s new air freight service with scheduled flights between Greenville-Spartanburg, South Carolina, and Incheon, Korea. It will have the newly built Boeing 767-300 freighters. 

Other

• Container tracking solutions may see a significant breakthrough in how insurers allocate risk. The latest tracking solutions transmit real-time location and status over cellular connections to companies' systems, providing real-time visibility of shipments and deep data insights. However, the cost of these solutions makes wider adaption of them more difficult. 
• SEA has filed a complaint against ZIM to FMC for not correctly performing its inland transportation commitments. This includes the failure to remove SEA Containers from terminals and deliver the containers to their designated inland locations.

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.