SEPTEMBER 16, 2021 | VOLUME 50
Two carriers say they’ll stop with spot rates. Too little, too late.
Both CMA-CGM and Hapag Lloyd think that they’re doing the shipping community a favor by getting out of the business of issuing spot rates. CMA’s reasoning, and we quote is, because, “The Group is prioritizing its long-term relationship with customers in the face of an unprecedented situation in the shipping industry.”
Pardon us, but where was this sanity around this time last year when significant rate increases began in earnest? Their attempts seem geared more at reducing the level of scrutiny they’ll receive from agencies like the European Shipper’s Council or the FMC, but meanwhile do nothing for the situation we find ourselves in.
It’s not just container rates that have gone crazy, but the rates to charter any available ship, even very old, very small ones in relation to the 20,000+ TEU vessels on the water today. Click the button below to reach about a 4,250 TEU vessel built in 2009 going on short term charter in late October for the staggering figure of $200,000/day.
The FMC is getting more interested in carrier behavior.
It’s been underway since the start of the pandemic, starting with an interest in demurrage and detention and has escalated to the FMC naming members of a National Shipper Advisory Committee which includes logistics companies and shippers with experience in imports and exports.
Yesterday, the Commissioners also voted unanimously (5-0) in favor of two initiatives aimed squarely at the largely haphazard and cloudy way at which carriers and terminals charge detention as well as offer greater protection from retaliation for those companies bringing action to the agency.
No ceiling in sight for air freight.
With the approach of peak season and the Golden Week holiday that sees Hong Kong, Taiwan and China shut down for a period of time, the Baltic Exchange Airfreight Index is showing new peak levels. We encourage our customers to contact us to book space as early as possible.
Major changes coming for NRI’s to Canada.
The CBSA Assessment and Revenue Management (CARM) project is a multi-year initiative that will transform the collection of duties and taxes for goods imported into Canada. Non-resident importers should pay particular attention and contact our Canada branch to learn more.
Mark your calendars: July 1, 2022
This is the day that the contract between the ILWU (longshoremen on the West Coast) and PMA (employers) expires. Expect there to be significant fireworks surrounding contract provisions to bring more automation to the waterfront. The ILA has already weighed in on the US East Coast with a resounding ‘no’ to working autonomous vessels – and will likely fight efforts to further automate their docks as well.
Blanked sailings? Really?
Prolonged blanked sailings in the wake of the start of the pandemic’s impact on China may have contributed mightily to the start of the supply chain problems we’re facing today, so at a time when every containership needs to be sailing, this announcement has angered European shippers.