News
Logistics Recap July 23rd – July 29th
Logistics Recap
July 23rd – July 29th
CMA CGM shipping revenue up 36% amidst profit slide
France’s CMA CGM, the world’s third-largest ocean carrier, has managed to aquire over billion a quarter net profits per container.
CEO Rodolphe Saade said Friday that “performance remains robust” despite “difficult market conditions” amid “further normalization” of shipping rates.
California ports recieve over $700M in federal grants
The state of California awarded several ports millions of dollars in grants to improve the movements of goods in supply chains, according to multiple port press releases in July.
The Port of Oakland received $119 million, the Port of Long Beach $383 million and the Port of Los Angeles a total of $233 million from the California State Transportation Agency.
Read More Here Supply Chain Dive
Transportation delays forve Volkswagen to lower delivery target
In a July 27 earnings report, Volkswagen lowered the target from 9.5 million automobiles to between 9 million and 9.5 million vehicles. The automaker said pressure was shifting from semiconductor shortages to transportation and logistics delays, although it also said that supply chain disruptions had eased during the second quarter of 2023. Overall, Volkswagen expects the cost of raw materials to decrease and logistics bottlenecks to lessen.
Logistics Recap July 16th – July 22nd
Logistics Recap
July 16th – July 22nd
Ocean carriers losing pricing power in trans-Pacific
Last week, we warned that the “peak” of peak season had already arrived for U.S. containerized import volumes and that demand was likely to decline from here to reach a “new” bottom in the back half of this year (forecasting a 10%-20% decline below second-half, 2019 levels). While container volumes from all ports of origin around the world were peaking last week, container volumes from Chinese ports specifically actually peaked this week. So when trying to understand how these changes in demand are likely to impact container spot rates on the trans-Pacific eastbound, it is important to look at China to the U.S. in isolation.
ILWU Canada revokes July 22nd strike notice
The International Longshore and Warehouse Union Canada has revoked a 72-hour strike notice that alerted maritime employers of a work stoppage at the country’s British Columbia ports on July 22.
On Tuesday, the union announced it had rejected a tentative agreement that had been proposed by federal mediators, and resumed a strike. By the next morning, though, the Canada Industrial Relations Board ordered the union to cease its work stoppage, and re-issue a 72-hour strike notice.
Read More Here Supply Chain Dive
Wheat prices continue to rise amidst threats to Ukraine bound ships
Since July 18, wheat prices have increased for three straight days after Russia threatened to treat ships destined for Ukrainian ports as military targets.
Russia has been bombarding Ukrainian grain facilities in Odesa and other cities for the last three nights. Since the attacks began the evening of July 17, over 20 people have been injured , according to BBC News.
Logistics Recap July 9th – July 15th
Logistics Recap
July 9th – July 15th
Defense bill passed, Bejin’s LOGINK banned in US ports
The U.S. House of Representatives approved a defense spending bill on Friday that included a provision limiting China’s ability to monitor the flow of ocean containers into and out of the U.S.
The provision, backed by Rep. Dusty Johnson, R-S.D., prohibits U.S. ports that take federal grant money from using China’s state-supported National Public Information Platform for Transportation and Logistics, known as LOGINK.
4-year deal reached between BCMEA and ILWU Canada
The British Columbia Maritime Employers Association and the International Longshore and Warehouse Union Canada reached a tentative agreement Thursday, announcing the end of the longshore strike at British Columbia ports.
The parties are currently finalizing the details of the 4-year agreement and are working together alongside supply chain partners to “safely resume operations as soon as possible,” according to a July 13 release.
Read More Here Supply Chain Dive
UPS strike estimated to result in losses above $7 billion
A threatened strike of 340,000 teamsters against UPS could be the costliest in U.S. history, according to analysis conducted by the Anderson Economic Group (AEG).
A 10-day strike would result in estimated losses of more than $7 billion in total economic losses. More than $1 billion would be lost in direct wages while UPS would be expected to suffer $816 million in losses, and UPS customers would suffer losses of more than $4 billion, AEG found.
Read More Here Supply Chain Brain
Steep rate hikes for India-Europe shippers
Leading container lines on India-Europe networks have announced a wave of steep rate hikes, starting next month.
CMA CGM, Hapag-Lloyd and MSC have already warned customers of impending price rises.