May 17th, 2021
Let’s lead off The Weekly Roar with two recent articles posted on the Jaguar Blog. Both are on our favorite topic of Logistics Technology, and both center on the recent appearance of Jaguar Freight CEO Simon Kaye on a JOC.com webcast hosted by Eric Johnson.
Click the title below to access the articles, which include select video highlights from the webcast.
Sarcasm aside, there is clearly some need for action, and the current crises may finally be the push the system needs. The first step will hopefully be the FMC finally taking action to set up an already planned shipper committee whose goal is to advise the agency on the “competitiveness, reliability, integrity, and fairness of the international ocean freight delivery system.” The idea and authorization for the committee came prior to the pandemic, but the supply chain effects that have unraveled over the last year created what Maffei referred to as a “systematic crisis.” – Read the full article here.
In news related to one of the industry’s other top stories of the year, Egyptian President Abdel Fattah al-Sisi, announced plans for the expansion of a portion of the Suez Canal within the next 24-months. “Sisi said that, while further expansion to the canal had been under consideration, the grounding of the 440-metre Ever Given container ship on March 23 highlighted the urgency of the plans.” – Read the full article here.
With strong U.S. demand for many commodities and fears of inflation, the Biden administration is performing a tariff review according to the top White House economist. And, there appears to be bi-partisan support for relief. – Read the full article here.
There appear to be some systematic changes happening in Air Freight. “Cargo is now one-third of airline business,” said IATA chief economist Brian Pearce. “It used to be significant, but not the most important part of the business.” The industry is reporting high revenues and yields as demand remains strong and space is hard to come by even though there’s 20% more capacity than pre-coronavirus. – Read the full article here.
Maersk is targeting a “soft landing” for rates according to its CEO, Soren Skou. But that carrier still expects rates to “normalize at a level about historical” in 2022. But, given all the other predictions about things returning to normal by this spring or summer we’ll take a wait-and-see approach before believing anything! – Read the full article here.
Finally, things may be settling (a least a little) when it comes to Brexit and U.K. trade. It’s been reported for the first time (going back to 1997) trade volume between the U.K. and the rest of the world exceeded that with the E.U. The last year has been anything but normal for European trade for obvious reasons, so it’ll be interesting if this trend holds or not going into the second half of 2021. – Read the full article here.
To read more about this week’s most important international shipping news, check out the links below:
The Federal Maritime Commission plans to stand up and fill a Shipper Advisory Committee within “the next couple of months,” Chairman Daniel B. Maffei told Supply Chain Dive Thursday.Read More
The Suez Canal Authority (SCA) plans to expand and deepen the southern stretch of the waterway where a container ship became jammed and blocked traffic for six days in March.Read More
The Biden administration is weighing concerns about commodity shortages and inflation as it reviews trade tariff policy, the top White House economist said on Friday.Read More
The world’s largest container shipping carrier expects a gradual decline in ocean freight rates from near record highs while it aims to boost slumping service reliability by the end of the year.Read More
The start of 2021 saw a historic realignment of trade in Britain, as UK imports from the rest of the world overtook imports from the European Union for the first time since records began.Read More