Transpacific Trade

Secondary trades suffer as carriers continue to chase the big bucks

The cellular fleet grew by 4.5% last year, to 24.97m teu, but capacity was cut on some routes as carriers re-deployed as much tonnage as they could on the more lucrative east-west tradelanes.
According to today’s Alphaliner data, the transpacific carriers deployed a further 1.3m teu of capacity on the Asia-North America trade last year than in 2020, a huge 31% increase in slots – albeit that about half the extra …

The post Secondary trades suffer as carriers continue to chase the big bucks...

https://theloadstar.com/secondary-trades-suffer-as-carriers-continue-to-chase-the-big-bucks/

Carrier ‘gravy train’ steams ahead, thanks to congestion and new contracts

Despite a weakening in demand, ocean carriers will bank another $200bn of profit between them this year.
In its latest Container Forecaster report, maritime consultant Drewry said it was downgrading its 2022 outlook for world port throughput to 4.6%, from its previous assessment of 5.2%.
This is due to “fast-rising inflation” and ongoing supply chain bottlenecks which, it said, were “conspiring to slow the pace of growth”.
Nonetheless, Drewry says it expects the …

The post Carrier ‘gravy train’...

https://theloadstar.com/carrier-gravy-train-steams-ahead-thanks-to-congestion-and-new-contracts/

Tough contract talks loom for shippers ‘gobsmacked’ by rate increases

With capacity remaining extremely tight ahead of Chinese New Year, shippers are bracing for a further wave of rate increases on container trades out of Asia.
The spot rate indices this week were virtually unchanged – the Freightos Baltic Index (FBX) Asia-North Europe component stable at $14,496 per 40ft, and its US west coast and east coast readings at $14,924 and $16,865 per 40ft, respectively.
However, The Loadstar understands that carriers are …

The post Tough contract talks loom for shippers...

https://theloadstar.com/tough-contract-talks-loom-for-shippers-gobsmacked-by-rate-increases/

Exporters ratchet pressure on Biden to take on shipping challenges

A historic peak shipping season with significant container ship backlogs is being used by a coalition of U.S. agricultural exporters to promote regulatory changes attempting to rein in alleged abuses by container carriers.

In a letter sent to the White House on Monday, 76 groups representing various agricultural export commodities warned that steps taken so far by the Biden administration to address the problem are not enough. They claim that operational tactics that carriers continue to employ...

https://www.freightwaves.com/news/exporters-ratchet-pressure-on-biden-to-take-on-shipping-challenges

Swiss megaship operator rejects allegations of collusion by US shipper

Geneva-based container line giant MSC Mediterranean Shipping Co. has denied allegations of collusion and contract violations by an American home furnishings manufacturer claiming its customer’s accusations are unsubstantiated.

MSC said it was “shocked” to learn of accusations made by Easton, Pennsylvania-based MCS Industries in a complaint filed at the Federal Maritime Commission. The complaint alleges that MSC, China’s COSCO Shipping Lines and their competitors are violating U.S. maritime laws...

https://www.freightwaves.com/news/swiss-megaship-operator-rejects-allegations-of-collusion-by-us-shipper

US company sues ‘collusive’ ocean carriers, alleging price manipulation

A U.S. manufacturer is accusing two of the world’s largest ocean carriers of reneging on its container service contract for imports from Asia so that the carriers can instead charge other shippers exorbitant transportation rates on the spot market.

In a complaint filed on Wednesday with the Federal Maritime Commission, Easton, Pennsylvania-based MCS Industries, a maker of household furnishings, also accuses China’s COSCO Shipping Lines, Switzerland’s MSC Mediterranean Shipping and their...

https://www.freightwaves.com/news/us-company-sues-collusive-ocean-carriers-alleging-price-manipulation

Regulator wants more ‘enforcement capacity’ against container lines

The Federal Maritime Commission asked lawmakers to boost its budget to help enforce Shipping Act regulations governing detention and demurrage practices as the agency intensifies its oversight of container lines.

Testifying on his agency’s FY2022 budget before the House Transportation & Infrastructure Committee on Wednesday, FMC Chairman Daniel Maffei said it is seeking $30.8 million — $1 million more than authorized for FY2021 — to bolster resources dedicated to the agency’s Bureau of...

https://www.freightwaves.com/news/regulator-wants-more-enforcement-capacity-against-container-lines

Maritime regulator signs first-ever competition agreement with Justice Department

The Federal Maritime Commission and the antitrust division of the Department of Justice have signed an agreement to sharpen economic oversight of foreign ocean carriers serving in the U.S. international container trades.

The first-ever memorandum of understanding between the two agencies, signed on Monday, follows President Joe Biden’s executive order issued on Friday aimed at curbing potential anticompetitive behavior among 72 industries, including the maritime and freight rail sectors.

“The...

https://www.freightwaves.com/news/maritime-regulator-signs-first-ever-competition-agreement-with-justice-department

+ More