Did You Know That..

…Terminal congestion spreads through Asia. Another spectre from the supply chain crisis returns to haunt container shipping. Red Sea rerouting continues to throw carrier schedules out of sync. This is now leading to increased congestion, further damaging reliability. Box ships omitting Singapore call as port congestion hits critical level. Congestion in Singapore, the world’s second-busiest container port, has reached a critical level, compounding the shortage of ships and containers.

…China's economy is set to grow 5% this year, after a "strong" first quarter, the International Monetary Fund said on Wednesday, upgrading its earlier forecast of 4.6% expansion though it expects slower growth in the years ahead.

...Ellerman City Liners, operated by our UK member Uniserve Group, relaunches China-UK service for peak season. UK-based container line Ellerman City Liners is making a temporary return to the Asia-Europe trade, announcing two summer sailings that will offer a fresh injection of capacity to UK importers. In a move reminiscent of the pandemic, when after a series of ad hoc charter sailings Ellerman launched a scheduled weekly China-UK express service in 2022, chiefly between Da Chan and Tilbury, the company announced this week it would revive the service in June and July. “This new route will see two vessels making two voyages to and from Ningbo and Da Chan Bay, to Casablanca into Tilbury,” said the company.

…Houthis begin warning owners and operators as bulker hit in Red Sea. Vessel reportedly was damaged before continuing to its next port of call. Houthi rebels claim to have alerted owners and operators that vessels would be targeted if any related ship called at Israeli ports.

…Ukraine comes in from the cold. New initiative seeks to prepare Ukraine’s ports for post-war entry in to European network. Ukraine’s ports have been severely damaged by Russian attacks. But with post-war European integration on the cards, steps are being taken to prepare them for the future.

…Zim continues to place its bets on the transpacific spot market. Full-year guidance midpoint hiked by $200m amid spot-rate spike. Zim’s transpacific spot exposure is at 65%, up from the traditional 50%. ‘That is a more challenging decision for us to make, but we feel it is the right decision,’ according to Zim CFO Xavier Destriau.

…Can the rich world escape its baby crisis? Governments are splurging on handouts to avert catastrophe. What began in East Asia is increasingly true elsewhere, too. The world faces a shortage of babies. Among rich countries, only Israel is having enough children to stop its population from shrinking, and in most places birth rates are falling.

...Positive cargo development at Vienna airport. The airfreight business at Vienna airport is picking up again, with 68,058 t of airfreight handled for import and export in Q1/2024. This represents a year-on-year increase of 16%.

...From Singapore to Astana. Singapore Post (SingPost) and Kazakhstan’s national postal operator announced their new cooperation agreement, involving e-commerce, logistics and technological ventures, last week.

…Mexico’s next president (likely Mr López Obrador’s protégée, ms. Claudia Sheinbaum) can reset relations with the United States. She will have much work to do on drug-trafficking, security, migration and trade.

...Another train to ship containers from China. The Russian container transport operator Ruscon (part of Delo Group) is extending its radius from China and has launched regular import rail services from China to Moscow.

…Lagging transatlantic is left out of spot rate rally — at least so far. Europe-US spot rates could eventually be dragged up by gains in other trades. Spot rates for US containerised imports from Europe are falling far behind rates from Asia. It could be just a timing effect, or it could be related to weaker demand for the types of goods in the transatlantic trade.

…Cyclone Remal slams into Bangladesh coast as hundreds of thousands evacuate. At least 800,000 people evacuate their homes in low-lying coastal areas of Bangladesh as intense cyclone makes landfall. According to a report from our partner NAVANA Logistics, The Harbor & Marine Department of Chittagong Port could not make any incoming movement of ships earlier this weeky due to bad weather (Heavy Raining & Strong Winds). Vessel’s re-berthing prospect was on 28th May and After Two days of pause, port operation actually to resumed from last Tuesday.

...AD Ports Group eyes Chittagong terminal. AD Ports Group has signed an MOU with the Chittagong Port Authority to explore the development and operation of a multi-purpose terminal at Chittagong Port, Bangladesh.

…Container spot rates continue to surge. Freight rates have risen 40% since the start of May with no sign of easing. Carriers are struggling to move ships and equipment back to Asia. Shortages of space are pushing pricing to a premium.

...Shippers should expect more Asia-Europe blanked sailings as rates rise. In terms of sailings, 128 container vessels arrived in North Europe during April against an advertised 169.

…The sense of genuine anger amongst North European shippers and freight forwarders was palpable this week as they struggled to digest rapidly escalating spot freight rates. “Real terms rates for spot are in the $6,000-$7,500 mark, with carriers saying they will hit $10,000.”

…Container capacity crunch to last until September. Shippers are pulling bookings forward at the same time as carriers are blanking sailings. Container lines are struggling to provide weekly services using the extended route around Africa. The current capacity shortage is unlikely to ease soon, keeping freight rates elevated.

…Tight vessel supply is continuing to combine with high demand in trunk trades and has led to a worsening shortage of containers at key export hubs in Asia, which is now having a significant impact on secondary trades.But carriers’ preference to carry higher paying spot cargo over contracted volumes is infuriating many customers.

...New FMC rules on detention and demurrage come into force. The US Federal Maritime Commission (FMC) revision to detention and demurrage (D&D) rules came into force this week, introducing new requirements for billing, timeframes and how to dispute unfair charges. 

…Joe Biden imposed another round of tariffs on Chinese exports to America, most notably increasing the duties on electrical vehicles to 100%.

...Flying relief to flooded Southern Brazil. TAP Air Portugal has carried out a special flight exclusively for the transport of more than 11 t of humanitarian aid collected in Portugal to help the victims of the disaster in the Brazilian state of Rio Grande do Sul.

…China military drills around Taiwan test shipping’s nerves. Merchant ships are still passing the exercise zones after drills started yesterday. But more military operations are cause for disquiet. Seaborne traders with a stake in this vast market must note the renewed tension in the Taiwan Strait as a stark reminder of the potential risks they face should the security situation worsen.

...Rail delivers cars made in Mexico. The new intermodal solution will offer a cost-effective, fast-transit, and sustainable option for manufacturers in Mexico. DP Word will launch the service on 1 June 2024.

… You may expect news about the EAA Network in Scandinavia soon. We are working hard to conclude the nominations of strong partners in the missing Nordic countries Sweden, Norway and Finland, stay tuned!

…The registration for the European RGM in Vienna on 17-18 October is open. To date we have around 30 companies (41 delegates) signing up. All members are invited to participate this event;  we encourage everyone to respond and tell us if you are basically interested to join this upcoming event. Attached find the latest update of the participants list.

…Joe Biden and Donald Trump agreed to hold two presidential televised debates, on June 27th and September 10th.

…The term robot derives from the Czech word robota, which can be translated as “forced or compulsory labour”.

Wishing you all a great rest of the week and weekend ahead!