Freight Market Update by our partner Janel Group in the USA: The Impact of the Baltimore Bridge Collapse on Local Ports. In the early hours of March 26, 2024, the Francis Scott Key Bridge in Baltimore, Maryland, collapsed after being struck by a cargo ship The Maersk Dali 405E. This event has significantly disrupted local traffic and raised concerns about the potential impact on freight transportation in and out of the surrounding ports.The Port of Baltimore, a major hub for imports and exports on the East Coast, is located near the collapsed bridge. Import freight will likely be diverted to surrounding ports but the collapse has caused immediate operational challenges and delays for shippers with freight currently at the port awaiting export. It is currently unclear how long it will take to clear the debris and restore normal operations.The collapse has also affected local traffic, with the bridge serving as a key route for Baltimore’s commuters and freight movement. This disruption could lead to increased congestion on other routes and potentially impact on the delivery times of goods in and out of the area.Janel Group will continue to support those affected by the collapse and monitor the situation to provide updates as they become available.

Six still missing (meanwhile presumed dead) after Baltimore bridge collapse. One member of the public seriously injured in ‘unthinkable tragedy’ as Biden vows to rebuild. Rescuers are searching the Patapsco river for six missing people after the Maersk-chartered boxship Dali lost power and crashed into a Baltimore bridge. All crew members, including two river pilots, have been accounted for and no pollution reported.

Vessels divert following Baltimore bridge collapse. Port closure has potential to cause significant supply chain disruption. Ships scheduled to call at Baltimore begin to reroute to alternative ports in the region following Tuesday’s tragedy in the US city.

Marine insurers face billion-dollar payout on Baltimore bridge collapse. Biden administration pledges to meet cost of rebuilding four-lane river crossing but primary insurer Chubb could seek subrogation. Exposure on physical damage, loss of life and personal injury, cargo and delay claims could nudge total bill towards ten-figure territory.

Following a recruitment trip to South America, we expect to announce the joining of new partners in Brazil, Peru and Ecuador shortly.

Maersk makes moves in Mexico. Maersk is looking to benefit from the potential of Tijuana as a key hub for US/Mexico cross-border trade by opening a new 30,000 sqm facility in the city. The site is located in Prisma XII, Pacifico Industrial Park in Tijuana, Baja California.

Misdeclaration of containers undermines IMO efforts to tackle plastic pollution, says WSC. Liner industry group calls on member states to enforce rules on accurate container labelling, highlighting the serious environmental damage of plastic pellet spillages. WSC requests IMO member states prioritise enforcement of accurate container content declaration, with mislabelling heightening risk of fire, improper stowage and collapsed stacks.

ONE outlines major growth plan to hit 3m teu capacity by 2030. If realised, the vision could potentially see ONE’s fleet capacity surpass key rival Hapag-Lloyd, while closing in on Chinese giant Cosco Shipping. To achieve its ‘sustainable growth’ strategy, the Jeremy Nixon-led carrier plans to invest up to $35bn to scale up its fleet, decarbonise operations and broaden its container shipping value chain.

Tightening ties between the UAE and Africa. Astral Aviation, a cargo airline based in Nairobi (Kenya) with an extensive network in Afrika, and Etihad Cargo, the cargo and logistics arm of Etihad Airways, successfully completed the inaugural flight to Abu Dhabi (UAE) on 21 March.

Red Sea crisis boosts road alternatives . The TIR system ensures that goods flow smoothly between East Asia, the Middle East and Europe. Following the Red Sea crisis, major transport companies have in recent weeks bypassed the Red Sea by opting for land-based alternatives through the Middle East and Gulf Cooperation.

CMA CGM ties up with newcomer for Red Sea service. New service with Folk Maritime will boost northern Red Sea links. Disruptions to Red Sea transits have led to service changes in the region. CMA CGM is now teaming up with local start-up to cater to the northern Red Sea.

Xiaomi, one of China’s biggest makers of smartphones, published a solid set of quarterly earnings. The company is making a diversion into the EV market, delivering its first electrical car on March 28th.

AD Ports invests in the Middle Corridor. The group is acquiring a 60% stake in the Tbilisi Dry port from Inveco. The facility is a new custom-bonded and rail-connected intermodal logistics hub in Georgia, situated on the Middle Corridor connecting Asia and Europe. The terminal is expected to be operational by Q4/2024 and will be operated and managed by Noatum Logistics.

A brief report from our friend Steven Yuan of FS International China (Shanghai office). Following the price hike in April by carriers last week, they have now begun to decrease prices. Currently, the market price is ranging from USD 3100 to 3300 /40HQ It is expected that prices will continue to decline over the next week.

Maersk has denied claims it is ripping off shippers by overcharging on EU ETS surcharges and refuted the Transport & Environment (T&E) study unveiled today, branding its findings “misleading”, and reliant on “flawed analysis” and “outdated surcharge estimates”. The four largest European shipping lines – Maersk, MSC, Hapag-Lloyd and CMA CGM – were named and shamed in T&E’s Profits Uncontained report, which claims millions of dollars in profits had been generated by overcharging customers for EU ETS compliance.

MSC to acquire French logistics operator. Deal will see carrier extend its diversification into logistics. The latest stage of logistics consolidation sees MSC subsidiary SAS acquire French outfit (Clasquin). Deal is expected to close this year.

UniOcean and Ellerman boxes (service operated by our UK member Uniserve), are on display in the hit series (on Netflix) The Gentlemen by Guy Richie.

Centurion Logistics Services, Our esteemed member in Taiwan since 2008, celebrated its 30 years anniversary last week with a great dancing party. Please Join me in congratulating ms. Cecilia Lee and her team with this milestone.

China lifted penalties on Australian wine after more than three devastating years. China has announced it is lifting punishing tariffs on Australian wines more than three years after imposing penalties that devastated the industry and were a major point of friction between the trading partners.

Speaking about wine… Why the French are drinking less wine. A younger generation is rejecting old Mediterranean habits. In 2022 roughly 10% of French people drank wine every day, down from half in 1980. Back in 1960 the French drank an average of 116 litres of everyday wine per person. Between 2000 and 2018 that shrank from 28 litres to just 17. A glass of wine, let alone the once-familiar pichet, is an increasingly rare sight at the lunch table. What is going on? It is not simply price. A bottle of (rough) Bordeaux can still be found in a French supermarket for under €3 ($3.25). Most important, a health-conscious younger generation is drinking less. A quarter of French 18- to 34-year-olds say they never drink alcohol. Consumption of high-quality wine remains strong. But the decline of cheaper stuff has wider repercussions for France.

Bulls are as good as colour-blind and don’t react any differently to a red cloth than to a green or blue one.

Wishing you all a great (Easter) weekend !