October Freight Forwarder Update

The orderbook for the rest of this year and the next could be a record breaker.

Here are some of the top stories in global shipping right now.

Earlier this month, Alphaliner issued a warning.

The orderbook for the rest of this year and the next could be a record breaker. Unfortunately, this could translate into tonnage supply outstripping vessel demand—structural overcapacity.

This year’s peak season slumped. The war, the economy, rising energy costs, political issues, and consumers returning to travel at the cost of shopping all had a hand in that. But Alphaliner’s expectation is that “a huge number of new large containerships are going to hit the water in 2023 at a time of stagnating demand.”

Click to Read: https://splash247.com/spectre-of-structural-overcapacity-looms-large-over-liners/

Back in September, hopes that a rail strike had been averted were high, but those hopes were dashed earlier this month.

The risk of a strike is back on the table thanks to a majority vote rejecting a tentative agreement that was partially brokered by President Biden. The union and the railroads have reentered negotiations, but union members will be in a strike position as of November 19.

Click to Read: https://www.supplychainbrain.com/articles/35854-rail-union-rejects-biden-backed-deal-reviving-strike-risk

The ports of New York and New Jersey are preparing to implement a revised container imbalance fee plan. The plan was initially introduced in August but has not been enforced to date.

The change, which is pending a final review, will determine at what point fees will be leveled against ocean carriers who have too many empty containers stacked up at port.

Click to Read: https://www.joc.com/port-news/us-ports/port-new-york-and-new-jersey/ny-nj-readies-revised-fee-plan-long-dwelling-empties_20221004.html

Ocean carriers continue to suspend services on the Asia-North Europe route as global demand diminishes.

Earlier this month Maersk released a customer advisory that says, in part, “As a consequence of the forecasted reductions in global demand, Maersk is looking to balance the network accordingly.” However, they do add a disclaimer saying their “overall goal remains to provide our customers with predictability and to ensure minimal disruption to their supply chains by supplying alternative routings and coverage for the affected vessel positions.”

Click to Read: https://theloadstar.com/maersk-and-msc-cull-asia-north-europe-capacity-as-bookings-founder/

The European Commission (EC) wants to extend the Consortia Block Exemption Regulation (CBER), and while liners are on board with that, their customers are not. The regulation, which allows for vessel sharing, is set to expire on April 25, 2024.

The World Shipping Council (WSC), Asian Shipowners’ Association (ASA), and International Chamber of Shipping (ICS) claim that vessel sharing is a “purely operational measure” but customers disagree. Click to Read: https://theloadstar.com/shippers-demand-change-as-battle-lines-are-drawn-over-ec-review-of-cber/