The multimodal network news digest - issue #45

The ripple effects from the West

The US West Coast ports, including Los Angeles and Long Beach, have finally achieved a sense of calm after months of congestion. Overall, the experienced delays are estimated to be worth around $5 billion. They will also most likely cause ripple effects throughout the supply chain, impacting trucking, warehousing, and distribution operations.  As of now, it is reported that the backlog of vessels and containers has significantly reduced, thanks to increased productivity and measures such as extended gate hours. However, the challenges in the region have not been fully averted. ILWU workers in Canada agreed to strike action to support their new contract negotiations. Shippers are also facing restrictions on the Panama Canal, where water levels have reached record lows. These difficulties have caused delays, congestion, and disruptions to the supply chain. 

Routes, rates & service 

• Drewry’s Asia-North Europe component fell 7% this week, to $1,349 per 40ft. WCI has witnessed the biggest decline in the last 6 months ending at $1,592. This decline comes despite the looming threat of congestion on the US West Coast. FMC has received complaints about alleged price dumping by certain carriers operating on the transatlantic route. The situation has prompted calls for increased regulation and oversight to prevent unfair pricing practices.
• Port Houston is set to experience a boost in volumes with the introduction of new intermodal rail services. Its strong exports are expected to continue, driven by the sustained high demand for resin exports.
• CMA CGM has introduced an overweight fee for shipments originating from India and bound for Europe. Starting from July 1st, a fresh charge of $100 per TEU will be imposed exclusively on dry cargo containers weighing over 22 tons. 
• A GRI from India to the United States and Canada was announced by HMM. Box rates from 1 July will be $900 per TEU, $1,000 per FEU, $1,125 per high cube container, and $1,266 per 45-foot container. 
• LTG Cargo has established a regular intermodal link between Kaunas in Lithuania and Slawkow in Poland. The new route provides an alternative to road transport, reducing congestion and carbon emissions.
• China is strengthening its rail links in Southeast Asia, with a particular focus on Malaysia. The cargo was shipped from Chongqing, China, to Padang Besar, Malaysia. The project involves the development of rail infrastructure, including the construction of new rail lines and upgrades to existing ones. 
• CMA CGM keeps expanding its presence in Spain. As part of its recent endeavors, the company has obtained ownership stakes in two terminals that are operated by Cosco Shipping Ports (CSP) Spain.
• Express intermodal service has been launched, connecting Hong Kong and Moscow. It combines the efficiency of rail and road transport to expedite cargo movement between the two locations.
• DP World has introduced a significant modal shift plan in the UK. The plan aims to encourage a shift from road to rail and inland waterways for freight transportation. DP World is offering financial incentives to companies that choose more sustainable transport modes. The incentives include discounted rail and waterway fees, reducing the overall transportation costs for businesses.
• The Yixinou-Jingdong China-Europe freight train has embarked on a journey from Yiwu, China, to Duisburg, Germany. The train is part of the New Silk Road initiative, which aims to strengthen trade and connectivity between Asia and Europe.
• Vietnam is actively pursuing enhanced cooperation with China in the field of railroads. It wants to open the China-Laos rail link. Improved rail connectivity is expected to boost trade volumes and enhance economic cooperation in the region.
• CMA CGM has announced a reshuffle of its North Europe-East Med-Levant service. The new rotation is: Felixstowe – Hamburg – Rotterdam – Antwerp – Le Havre – Malta – Alexandria – Port Said West – Beirut – Iskenderun – Mersin – Salerno – Tanger Med – Felixstowe. 
• A new service connecting Asia and Turkey by CMA CGM with the rotation Shanghai – Ningbo – Nansha – Singapore – Jeddah – Iskenderun – Malta – Misurata – Jeddah – Port Klang – Shanghai. 
• Maersk has revealed plans to include an additional port stop in its ocean shipping service Shaheen Express, commencing in early July. The Shaheen Express will rotate between Jebel Ali, Mundra, Pipavav, Jebel Ali, and Sohar, with the aim of creating a stable and reliable service for the India-UAE-Oman corridor.

Other 

• In China, the average duration of container ship stays in ports has decreased. The trend indicates improved efficiency in port operations and vessel turnaround times. However, in the US West Coast ports, the dwell time significantly increased. It is partly attributed to the surge in import volumes and the imbalance between imports and exports.
• FMC has taken action to prevent carriers from unreasonably turning down business. The initiative aims to address concerns raised by shippers regarding carriers' refusal to transport their cargo. Carriers have been accused of rejecting cargo bookings without valid reasons, leading to disruptions in supply chains.

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.