June 2022 Freight Forwarder Update

Here are some of the top stories freight forwarders and shippers should be watching.

Here are some of the top stories freight forwarders and shippers should be watching.

Early this month, the FMC released its final report on an investigation into container shipping throughout the pandemic. Commissioner Rebecca Dye has announced three new initiatives to help shippers. These are the International Ocean Shipping Supply Chain Program, reestablished Export Rapid Response Teams, and the designation of FMC Compliance Officers.

Click to Read: https://gcaptain.com/fmc-launches-new-initiatives-to-help-shippers-with-supply-chain-challenges/

Some ocean carriers are making a deeper dive into the air cargo business, specifically, CMA CGM and Maersk.

CMA CGM has received its air carrier certificate from the French Civil Aviation Authority and has 2 new Boeing 777 freighters to get them up and flying from their new base of operations at the Paris-Charles de Gaulle International Airport (CDG). They hope to double their air fleet of 6 by 2025.

As for Maersk, they have finalized the acquisition of a $644 million freight forwarding company, Senator International, based in Hamburg, Germany. The company specializes in business air freight shipments.

Click to Read: https://www.freightwaves.com/news/european-ocean-carriers-expand-air-cargo-capabilities

You’ve probably heard that Amazon has finally launched its drone delivery service, but what does this mean for the shipping industry at large? Some feel that it could significantly change the industry and that the drone market will triple by the end of 2024. When you consider that drones are eco-friendly and can carry a maximum capacity of 4,500 pounds, they may be right.

Click to Read: https://www.globaltrademag.com/another-huge-benefit-is-that-drones-could-also-improve-the-restocking-process-just-as-companies-use-drones-to-connect-with-customers/

So who’s to blame for US inflation? According to President Joe Biden, it’s the global shipping alliances. These three alliances control about 80% of the world’s shipping container capacity and according to Biden, over the last few years they’ve raised their prices by as much as 1000%, which he says is a “rip-off.”

Click to Read: https://www.bloomberg.com/news/newsletters/2022-06-13/supply-chain-latest-biden-warns-shipping-lines-amid-hot-inflation

Finally, chokepoints have been identified as another vulnerability in the supply chain. Chokepoints in shipping lanes are both man-made and natural, and since about 90% of trade goods traveled by ocean, a lot of it vital supplies, they represent a valid concern. Especially since shipping is a significant factor in the global economy.

Goods can travel through multiple connected chokepoints across global supply chains. If one is blocked, others can be affected—and they can be affected by a variety of situations. These include terrorism, cyber events, political and military campaigns, and more.

Click to Read: https://www.arabnews.com/node/2100436