March 8th, 2021
From lingering supply chain woes, to the Port of LA’s new vaccination site, to price hikes in air cargo, to moving forward in transportation management, to the UK’s new freeports, there’s a lot to discuss for this week’s global freight update. So, let’s get started.
Unfortunately, solving the container crisis requires more than simply throwing more boxes into the equation, which is why the FMC is cracking down on marine terminal operators and ocean carriers as well as encouraging more collaboration within the industry. If we don’t start focusing on solutions now though, elevated shipping costs are only going to go up from here and possibly even last well into 2022.
In an attempt to boost labor and ease the intense port congestion in Southern California, the International Longshore and Warehouse Union has partnered with local employers to launch a new vaccination site at the Port of Los Angeles. According to Jim McKenna, president of the Pacific Maritime Association, port authorities were aiming to vaccinate 7,000 dockworkers by the end of last week.
As container volumes continue to flood crucial U.S. gateways, the toll COVID-19 is taking on skilled equipment operators is only further escalating the situation at hand. Many are struggling to get their orders in on time while also having to pay high premiums that are eating away at their already slim margins.
Meanwhile, the air freight marketplace is seeing rising fuel prices combined with increasing airline surcharges show how, regardless of the mode, shippers are doing a lot of the heavy lifting when it comes to footing the bill. With ocean shipping maxed out and other sectors not too far behind, it’s becoming more and more apparent how much room for improvement there really is in transportation management.
On a more positive note, UK Chancellor Rishi Sunak has recently revealed the locations of eight new freeports, or free trade zones. Local authorities hope these areas will help simplify the current shipping situation, lower customs costs, and ultimately stimulate the country’s post-Brexit economy.
To learn more about this week’s leading headlines, check out the following international shipping industry highlights:
The word “unprecedented” has almost lost its meaning as a result of the COVID-19 pandemic. But yet, it is still the best way to describe conditions in the ocean container shipping industry.Read More
Waterfront employers and the International Longshore and Warehouse Union have set up a large vaccination site at the Port of Los Angeles as they prepare to more than double the number of dockworkers who have been vaccinated this week.Read More
Covid-19 has created a slimline and more efficient – if more expensive – air cargo sector. While volumes are now broadly the same as a year ago, capacity remains significantly down, revealing more efficient use of aircraft.Read More
In case you were in any doubt, this past year taught us that the rules for success moving forward won’t be the same as those from the past. This is particularly true in transportation management.Read More
During his budget announcement last Wednesday, Sunak unveiled the locations of eight new “special economic zones with different rules to make it easier and cheaper to do business.”Read More