The multimodal network news digest - issue #34

Bring on the fair game!

Freight rates on major trade lanes have stopped dropping so drastically, falling just by 1% which may signal a possible ease of the rate erosion seen in previous months. However, experts warn that rock-bottom prices are not good for anyone, as they can lead to overcapacity and financial stress for carriers, while shippers may face service issues due to carriers cutting corners to save costs. Moreover, the current supply chain disruptions caused by the pandemic have resulted in a shortage of containers, which is driving up prices and further complicating the situation. Experts suggest that a balance needs to be struck between fair pricing and maintaining healthy competition in the market.

Hot topic 

Employees of German rail company Deutsche Bahn have expressed dissatisfaction with the company's collective bargaining offer, which they feel is insulting and insufficient. The offer includes a wage increase of 2%, which union representatives say is not commensurate with the hard work and dedication of railway workers, particularly in light of the challenges posed by the COVID-19 pandemic. Negotiations are ongoing, and unions have not ruled out the possibility of industrial action if a satisfactory agreement is not reached.

Routes and services 

• Maersk has announced improvements to its Oceania and Americas service with a new direct call to New Zealand and increased capacity to the west coast of South America. The rotation will be: Seattle (US) – Oakland (US) – Long Beach (US) – Auckland (New Zealand) – Sydney (Australia) – Melbourne (Australia) – Tauranga (New Zealand) – Papeete (French Polynesia) – Surrey (Canada) – Oakland – Long Beach – Auckland – Sydney – Melbourne – Adelaide (Australia) – Tauranga – Seattle.
• The capitals of China and Russia have been connected for the first time on a new rail route under the Belt and Road Initiative, creating a direct freight service from Moscow to Beijing.
• Italian intermodal company Arcese has launched a new triangular rail freight service between Italy, Austria, Germany, and Romania to connect the regions with faster and more sustainable transport. 
• Eurotunnel has introduced FIRST, a new subscription service to give priority to trucks that want to hop on the rail freight shuttle to cross the Channel Tunnel between France and the UK.
• Hapag-Lloyd’s new Vietnam Indonesia Straits (VIS) service will replace the old VNF and SPL services. The rotation will be Cat Lai – Singapore – Port Kelang – Belawan – Penang – Port Kelang – Singapore – Cat Lai.
• MSC has introduced a new container service that connects Saudi Arabia with India, Pakistan, and Sri Lanka, with the first sailing to begin in April.
• The Valencia rail port has seen a 13.6% rise in container traffic, handling over 145,000 TEU, during the first two months of 2023. The increase in container traffic has been attributed to the growing trend of shippers opting for rail transport as more sustainable and less congested. 

Other

• FMC has adopted a new rule that expands shippers' eligibility for carrier refunds for service failures. Under the new rule, the FMC requires ocean carriers to amend their rules governing service contracts to allow shippers to claim refunds for failures in container delivery or return. The rule also provides greater transparency for shippers by requiring ocean carriers to publish their refund policies and procedures.
• The Jawaharlal Nehru Port Trust in India is facing operational challenges as it deals with a surge in cargo volumes due to the festive season and the year-end rush, leading to congestion and delays in cargo handling. To address the challenges, JNPT is implementing measures such as increasing the number of cranes and streamlining processes to improve efficiency.
• Union workers at the Panama Canal have gone on strike, protesting the use of tugboats operated by non-union workers to guide larger vessels through the canal. The Panama Canal Authority has defended its use of non-union workers and proclaimed that safety standards are being met. The strike has caused delays in canal operations, affecting the transit of vessels through the canal.
• The US Surface Transportation Board has approved Canadian Pacific's acquisition of Kansas City Southern, creating the first rail network linking Canada, the US, and Mexico. 
• Freight forwarding and logistics firm Expeditors has sued its long-term client, footwear company Skechers, for unpaid invoices totaling nearly $20 million. Skechers has disputed the charges, claiming that the invoices are inaccurate, and the case is now being heard in a US court.
• Freight forwarding and logistics firm Expeditors has sued its long-term client, footwear company Skechers, for unpaid invoices totaling nearly $20 million. Skechers has disputed the charges, claiming that the invoices are inaccurate, and the case is now being dealt with in a US court.

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.