The multimodal network news digest - issue #36. The breakdown

Shipping lines monopoly may be a tough nut to crack.

A US House panel is considering a bill that would remove the antitrust immunity currently enjoyed by ocean carriers under the Shipping Act of 1984 as a response to concerns over the consolidation of the container shipping industry and the impact on competition, freight rates, and service quality. To increase competition, FMC proposed to prevent ocean carriers from jointly operating vessel sharing agreements (VSAs). The shipping companies expressed their protests immediately claiming that if it happens, this move would lead to higher costs and reduced service levels for shippers. They believe that VSAs provide greater flexibility and enable them to offer more frequent services to customers at a lower cost. 

As contract negotiations between shippers and shipping lines stall, more shippers are being forced to turn to spot rates to secure transport capacity, resulting in higher costs and reduced predictability. The situation is being attributed to the ongoing disruption to global supply chains. Reportedly, shippers are taking longer to commit to contracts amid falling rates. Nevertheless, Maersk reports  the contrary, that the situation with the supply chain begins to show signs of improvement thanks to increased port productivity, greater reliability in container shipping, and the return of more regular vessel schedules. Despite the fragile state of things, companies are working to adapt to the new normal, including by diversifying their supply chains, increasing transparency and collaboration, and investing in technology and automation to improve efficiency and resilience.

Routes & services 

• CMA CGM has added the Indian Subcontinent to its list of destinations that will be subject to a congestion surcharge from Mersin, Turkey. The surcharge of 100$ per dry container is aimed at offsetting the increased costs caused by congestion and delays at the port of Mersin.
• From April 10, CMA CGM will add a 100$ surcharge to 20' dry boxes with a container gross weight equal to or over 16 tons from the port of Jeddah in Saudi Arabia to North Africa and Morocco.
• Metrans is expanding its terminal network along the Hungary-Serbia corridor by acquiring 51% stake in railway company Adria Rail and building two new terminals in southern Hungary. 
• PIL is expanding its intermodal transport services in China by integrating a new barge service between the ports of Shanghai and Nanjing. The move is part of PIL's efforts to increase the efficiency and sustainability of its supply chain operations in the region.

Other

• Alibaba Group has announced plans to restructure its business into six separate entities in a move aimed at increasing transparency and compliance. The restructuring comes as founder Jack Ma returns to China after an extended absence, amid heightened regulatory scrutiny of the country's technology sector.
• CMA CGM, COSCO, and Hapag-Lloyd - are reportedly planning to place orders for new containerships as demand continues to outstrip supply. The move is seen as a bid to secure future capacity and maintain their market position in the face of ongoing disruption to global supply chains. With this strategy, CMA CGM has started to dominate the container sale and purchase scene. 
• The US Environmental Protection Agency has reached an agreement with the state of California to phase out the use of diesel-powered trucks and buses in the state by 2045. 
• US lawmakers have reintroduced the Truck Parking Safety Improvement Act, which aims to provide funding for the development of new truck parking facilities and address the shortage of safe and secure parking options for truck drivers. The move is seen as a bid to improve the safety and well-being of truckers and reduce the incidence of accidents and cargo theft.
• The German government has announced plans to double the country's truck tolls from 2024 and invest billions in railway infrastructure as part of efforts to reduce emissions and improve transport sustainability.
• Poseidon Containers, a shipping container lessor, has completed its $1.1 billion acquisition of Atlas Corp's boxship fleet. It is a major step in Poseidon's ongoing expansion strategy.

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.