April box demand fell 8.1pc to 2.4m TEU: Container Trade Statistics
GLOBAL container demand fell 2.4 million TEU in April Container Trade Statistics have shown demand has lost 2.4 million TEU in April 2020, and a demand loss of 4.4 million TEU in 2020 year to date, reports London's Logistics Point.
This equates to an 8.1 per cent year-on-year contraction in global demand in 2020 year to date.
Carriers announced another 521,000 TEU of blank sailings, which is a 15 per cent increase over the announcements made the week prior, according to Sea Intelligence Consulting.
The six-week plateau that reached for Q2 has now see an drastic upwards change, with the total pandemic-induced blanked capacity nearing four million TEU, which is three times as much as the capacity reduced for Chinese New Year in 2020.
Compared to the market status two weeks ago, there have been an additional 20 blank sailing announcements on the transpacific and 24 on the Asia-Europe run.
Both 2M and Ocean Alliance have only announced a two per cent capacity reduction on Asia-North America west coast, while Ocean Alliance are yet to announce any blank sailings on the other major East/West trades.
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Port of Savannah commissions first 9 of 18 Mason Mega Rail tracks
GEORGIA Ports Authority (GPA) has reached a milestone by putting put into operation the first nine of 18 new working tracks, with its first two rail-mounted gantry cranes to be commissioned in June, under its Mason Mega Rail project, which has been in the works for more than four years.
The project is designed to expand service to the Southeast and Midwestern US and the Mason Mega Rail Terminal will double the Port of Savannah's rail capacity to two million TEU per year, GPA said in a statement.
"At the Port of Savannah, we are working to improve the efficiency of the American supply chain and move goods to market even faster," said GPA executive director Griff Lynch. "These efforts are strengthening our logistics network at a time when the nation needs it most."
He noted that throughout the Covid-19 crisis, dedicated GPA employees and contract workers have continued to press forward, with a daily average of more than 150 people working on the rail expansion, and more than 2.2 million staff hours expended in planning and construction since late 2015.
"Additionally, throughout all this work and the issues related to the coronavirus, GPA and our partners at the International Longshoremen's Association have continued to provide world-class service to our customers," Mr Lynch said.
GPA board chairman Will McKnight said the expansion will use an estimated US$38 million of American-made steel. The project has so far installed 56,000 feet of new track, but will include a total of 129,000 feet when complete - or nearly 24.5 miles.
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Nearly half the major ports see drop in box ship calls: IAPH report
SOME forty-five per cent of ports have reported that the number of containership calls have fallen by between five per cent and 25 per cent compared to 34 per cent the previous week, according to a weekly report from the International Association of Ports and Harbours (IAPH).
The report - WPSP Port Economic Impact Barometer - authored by Port Economics members Theo Notteboom and Thanos Pallis shows that Covid-19 pandemic has impacted ports differently according to the regions. Cancellations, mainly on routes to the Far East, are clearly affecting container ships.
Eight per cent of ports faced a significant drop, over 25 per cent in containership calls. Ports reporting reductions of more than 25 per cent in calls in the cargo ship category increased to 16 per cent; less than half of the ports mention that the number of calls of other cargo ships is fairly stable compared to a normal situation.
In North America, boxship calls have deteriorated rapidly in recent weeks. Last week, 71 per cent of ports responding to the survey have experienced a five per cent-25 per cent reduction in container ship calls, a figure well above the world average.
However, the WPSP Covid-19 working group expects a recovery by the beginning of June for some ports in Asia in terms of container shipping services, with a corresponding positive impact six to eight weeks later in regions such as Europe and North America, reports Seatrade Maritime News, Colchester, UK.
"We are beginning to see some lines reintroduce services on the main east-west routes that they had previously neglected. We have also received reports from East Africa of a return of liner services out of Asia this week, which is a positive development," explained Mr Notteboom.
North American ports are experiencing fewer delays in inland transit and greater availability of port workers. The hinterland transport situation in that region is, on average, much less disrupted than it is worldwide, particularly for trucks entering and leaving port areas. Except for railways, the number of ports that have faced hinterland transport disruptions has remained below 20 per cent.
In addition, North American ports generally report few problems with the availability of port workers.
"The members of our WPSP Covid-19 working group have given us a unique insight into the changing impact of the contagion on ports in different regions of the world. We now see Asian ports fully operational and with promising signs in terms of recovery," said IAPH director general Patrick Verhoeven.
"European ports are gradually returning to the 'new normal', while ports in regions such as South America and Africa are having to adapt to the contagion, which in many cases is reaching its peak there," he said.
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Commerce Ministry says China aims to bolster trade ties with ASEAN
CHINA is willing to strengthen trade ties, investment and economic cooperation with the Association of Southeast Asian Nations (ASEAN) as the regional bloc becomes an increasingly important, announced the Ministry of Commerce.
Partly the result of dropping trade volumes with the EU and the US, China's trade with ASEAN rose 4.2 per cent year on year to CNY1.7 trillion (US$240 billion) in the first five months of this year, reported China Daily.
Today, ASEAN has replaced the EU as China's largest trading partner, customs data reveals.
This growth reflects China's eagerness to maintain the stability, security and development of its industrial and supply chains with ASEAN, said ministry spokesman Gao Feng.
Mr Gao said China and the ASEAN countries have strong complementary economies. Both sides have showed their advantages and deepened economic cooperation in various fields.
"The establishment of the China-ASEAN Free Trade Area has also pushed the two sides to open each other's markets, promote trade and investment liberalisation and ensure the smoothness of global industrial and supply chains," he said.
Said Vice Commerce Minister Wang Shouwen: "I believe the RCEP [Regional Comprehensive Economic Partnership] will go a long way toward regional economic recovery following the pandemic," Mr Wang said. "It will help harmonise trade rules in this region and will enhance supply chains and value chains."
Mr Wang said the deal will also promote regional economic integration and promote trade by eliminating over 90 per cent of the tariffs on goods being traded in the region. Further, the RCEP will not only give a strong boost to an open global economy, but also significantly contribute to the global trading system.
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Port of Oakland names longtime shipping vet as maritime director
VETERAN shipping executive Bryan Brandes has been named maritime director at the Port of Oakland, replacing John Driscoll who left to manage the Alabama State Port Authority, reports the American Journal of Transportation.
After a nation-wide search, Mr Brandes, recently vice president of FlexiVan Leasing, an intermodal chassis leasing company, was selected. He is a 25-year maritime veteran, having worked with Maersk Line, CMA-CGM and APM Terminals.
"Bryan is coming in at a crucial time for us and we're eager to put his skill and industry experience to work," said Port of Oakland executive director Danny Wan. "He knows the players, knows the business and knows what it takes for us to succeed."
Oakland annually handles 2.5 million TEU, and is known as a key US exporter of farm produce. Cargo volume has declined 7.8 per cent in 2020 due to the economic fallout from coronavirus.
The port said Mr Brandes faces two challenges: recovery from the economic wallop and shaping Oakland's maritime future. The port and business partners have invested millions this decade in new logistics capabilities. Oakland is now upgrading to handle the latest class of ultra large container vessels.
"The port has operated smoothly throughout the pandemic so we're confident about recovery," said Mr Brandes. "And with the foundation we've got in place, I'm excited about our future. I can't wait to get started."
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