Wildfires Emerge As the Latest Strain on Supply Chains

Wildfires Emerge As the Latest Strain on Supply Chains

July 12th, 2021

From Ever Given’s long-awaited departure, to severe congestion in Oakland, to an outbreak of wildfires in western Canada, to improving efficiency at U.S. ports, to the IATA’s latest air cargo market analysis, it’s time to break down this week’s top stories in international shipping.

After being thoroughly surveyed in the Great Bitter Lake since March 29 and reaching a successful settlement, the Ever Given has finally set sail to Rotterdam much to the relief of its crew. Meanwhile, intense port congestion in Oakland has caused carriers including MSC, ONE, and COSCO to start scaling back calls at the Port of Oakland, so space to and from the Northern California gateway is going to be very limited over the next few weeks, according to JOC. Also, Hapag-Lloyd plans to apply a Congestion Surcharge (OCS/PCS) of $350 per container for all intermodal moves by truck and/or rail to and from the U.S. beginning Aug. 1.

In other news, the recent outbreak of wildfires in western Canada caused by the area’s severe heatwave has led to major supply chain bottlenecks as a result of rail line damages that are creating delays up to 96 hours for vessels at the Port of Vancouver. According to Bloomberg, “Canadian Pacific said late Monday that it had resumed mainline rail operations following safety inspections, but Montreal-based Canadian National still needs to repair its bridge near Lytton, B.B., the village that was largely destroyed by fire last week.”

With constant disruptions like these throwing schedules off, the FMC’s Fact Finding 29 committee established “Supply Innovation Teams,” which found four key ways to address the most pressing challenges at U.S. ports today. On one last note, the IATA’s latest air cargo market analysis revealed that volumes in May “continued to outperform pre-COVID (2019) levels — although demand in May was slower than that in April.” 

Check out the following article summaries to learn more about the international shipping industry’s leading news:

High praise for Ever Given crew as vessel finally sets sail from Suez

The shipping industry has welcomed the news of the Ever Given’s departure at last from the Suez Canal to Rotterdam, where it is set to arrive this weekend.

Read More

Congestion forces MSC to scale back Oakland calls (sub. required)

Mediterranean Shipping Co. (MSC) will reduce the frequency of calls in Oakland on its Orient service from weekly to every two weeks because of ongoing congestion at the Northern California port, the carrier said last Tuesday.

Read More

Western Fires Halt Hundreds of Canada Rail Cars, Slowing Exports (sub. required)

Hundreds of rail cars have been halted by wildfires that damaged tracks in western Canada during the region’s severe heat wave, creating a bottleneck of exports and delaying imports.

Read More

Preliminary findings of Fact Finding 29 identifies key measures to improve efficient cargo movement in U.S. Ports

The FMC is an independent federal agency responsible for regulating the international ocean transportation system of the United States of America for the benefit of U.S. exporters, importers, and the U.S. consumer.

Read More

IATA: Volumes outperform pre-Covid levels, but pace slows in May

Global air cargo demand in May 2021, measured in cargo-tonne kms (CTKs), was reported as 9.4% higher than in May 2019 (used instead of last year for comparison purposes due to impact of Covid).

Read More

About the Author

Jaguar Freight author

    Get In Touch