Global Freight Updates Delivered to You!

Global Freight Updates Delivered to You!

November 16th, 2020

Hello! This is the news and information you can use to get your Monday off to a strong start and have a great week.

What’s happening NOW:

From the Transpacific container crunch, to an inventory ratio roller coaster, to allegations of ignored U.S. exports, to the release of a zero-emission shipping blueprint, there’s A LOT going on.

Here are the highlights in the news that could be impacting your international shipping operation.

As Chinese exports and consumer demand in the U.S. continue to surge, the resulting lack of capacity has doubled the cost of leasing and purchasing new containers. With longer waits, added equipment fees, and some major port congestion, managing this year’s peak season will be no easy feat. When you factor in the FMC’s reports of U.S. shippers claiming that carriers are prioritizing container returns over their exports in order to profit off of high rates, it appears the market is left with a pretty serious imbalance.

The airfreight market is showing consistent improvement after a challenging early part of the year. Volume is down for September according to the latest figures available from the IATA.

Retail inventories haven’t had much luck with stability, either. According to the U.S. Census Bureau, the total business inventory-to-sales ratio recently reached a new low after hitting a record-high earlier this year in April, leaving retailers struggling to streamline their inventory flow in the wake of the coronavirus. Given these pandemic-induced struggles, many are wary of what’s in store for shipping as we head into 2021.

Despite a call for caution, more than 120 shipping giants are working towards decarbonizing the industry, while the impending U.S. Maritime Administrator nominee offers a similar opportunity for reducing global shipping’s carbon emissions. Such environmental initiatives help provide a brief glimmer of hope amid all of the chaotic disruption the industry is currently facing.

With a COVID-19 vaccine likely on the horizon, the massive work now begins for the global supply chain to get it distributed. It’ll perhaps be the biggest, most important, and difficult GLOBAL supply chain challenge, ever!

Here’s a more in-depth breakdown of this week’s curated content:

Vital World Trade Route Roiled by Container Crunch

All shippers should pay attention to what’s happening in the China/ US trades because it impacts everyone, eventually.

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Inventory roller coaster expected to trend upward after August lows

Bottlenecks in the global and domestic shipping marketplaces are impacting retailers’ inventories and ability to meet demand.

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Felixstowe bans empties again as congestion builds and vessels 'cut and run'

Asia and the U.S. Ports are not alone with congestion problems. The U.K. is in the same boat.

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Shippers allege lines are refusing to carry US export cargo

U.S. exporters often feel overlooked by the carriers, this article seems to support that concern.

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Green hydrogen and retrofitted boats: Shipping giants plot course to net-zero

It’s great to read about the efforts many companies are making to reduce emissions and face the problem head-on.

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Airfreight rates climb as peak nears

The airfreight market is showing consistent improvement after a challenging early part of the year. Volume is down for September according the latest figures available from the IATA.

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The state of supply chains: Pharma and the vaccine race (part one)

As good news emerges about the possibility of a coronavirus vaccine being approved soon, supply chain practitioners are all watching closely because only we can truly appreciate the massive effort it will take to get it distributed.

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