The featured news this week includes the latest on port congestion, the global rise in oil prices and alleviation efforts, increasing air freight handling costs, ocean carriers’ pandemic profits, and a tip of the hat to the Old Guard of ocean shipping.
For the Ports of LA/ Long Beach, there is mounting optimism the worst may be over. Since the twin ports announced a new fee on uncleared containers, containers on the docks have been reduced by almost 30%. Although, some issues such as the difficulty with crew changes and the slow vaccination rate of seafarers may persist longer.
As inflation has reached a 31-year high in the US, President Biden, in conjunction with efforts by other high energy-consuming countries like China, India, and the UK, ordered the release of 50 million barrels of oil. The intent is to provide relief from rising oil prices and energy costs ahead of winter.
Despite the tough times for shippers, it’s been a mixed bag for logistics services companies. On top of issues like rising costs for fuel, scarce truckers, and airport labor, companies should prepare for a significant rise in air cargo terminal charges in 2021.
Shipping lines, however, have been more fortunate with bullish profits this year. Many are channeling those profits directly back into their businesses. Maersk, Evergreen, Hapag-Lloyd, and others have made big investments in cargo jets, trucks, ships, and warehouses.
Lastly, we have an interesting article on the man known as the founder of modern ocean freight – Malcolm Mclean. It could be argued the challenges we’re all facing today are the biggest since the ocean container became common 70 years ago.
For the rest of this week’s top news, check out the article highlights below.