3-minute read
There is no doubt container carriers are reaping record profits at the expense of cargo owners.
International maritime analysts Drewry recently stated that “ocean carriers have generated about US$190 billion of annual profits and about US$130 billion of fresh cash in 2021, obtained mainly by charging higher prices”.
Nonetheless, it is fair to say that there are also some additional areas of expenses they have to deal with, such as spiralling charter costs and high prices for second-hand container vessels (even older vessels that may otherwise have been heading for the scrapyard).
10-minute read (23-minute listen)
Exporters are forced to charter private ships to ferry produce to foreign markets amid Covid driven cargo crisis. Meat producers and fresh fruit and vegetable producers are struggling to get goods to overseas buyers because of the ongoing containership congestion problem.
As more goods are being shipped and delays lay siege to best-by dates, meat company Affco has resorted to chartering private vessels to get exports – valued at close to $120m – to their overseas markets.
4-minute read
There is nothing like detention and demurrage charges that affect the relationships between shipping lines, importers, customs agents and freight forwarders. Over the years, the disputes were taken to tribunals and courts.
Therefore, there’s likely to be significant interest in a fascinating case currently going through the deliberation process by the US Federal Maritime Commission (FMC), the US Government body that oversees competition in that country’s supply chain.
4-minute read
Returning disruptive elements in the supply chain to anything resembling normality will take a lot longer than shippers, freight forwarders, ports, and governments will hope. One of the key disruptors, schedule reliability, is in the spotlight.
Even though supply chain problems continue to plague the industry, it appears that COVID is now entering an endemic phase rather than a pandemic, says Alan Murphy, CEO, Sea-Intelligence.
As such, it is also the time to take stock and contemplate how long it will take the supply chain to normalise, he says.
3-minute read
Demand for air cargo increased by 6.9% in 2021, compared to 2019 (pre-COVID levels) and 18.7% compared to 2020, following a strong performance in December 2021, according to IATA data for global air freight markets.
This was the second biggest improvement in year-on-year demand since IATA started to monitor cargo performance in 1990 (behind the 2010s 20.6% gain), outpacing the 9.8% rise in global goods trade by 8.9 percentage points.
2-minute read
Carriers have traditionally used blank sailings as a tactical tool to manage supply to demand.
However, with the North American demand boom and the resulting port congestion, carriers have been struggling to meet their weekly vessel departure obligations, resulting in vessel delays, rolled schedules, and blank sailings.
1-minute read (5-minute watch)
The Covid pandemic has strained global supply chains, causing freight backlogs that have driven up costs.
Now, some companies are looking for longer-term solutions to prepare for future supply-chain crises, even if those strategies come at a high cost.
As a consumer, are you prepared to pay double for your products if you get them faster?
2-minute read
According to a survey, almost all firms are raising freight procurement budgets, and some are doubling them amid spiralling shipping costs.
A report by Sleek Technologies said 97% of firms planned to increase freight procurement budgets in 2022 for reasons including better managing capacity, increased agility, bolstering cost management and delivering better overall results.
6-minute read
Should shippers prepare for a new round of disruptions in 2022? And what are the key factors to watch out for in 2022?
2021 was undoubtedly a year like no other for the supply chain as record vessel delays clogged ports and crammed warehouses. Smaller companies have had to fight to secure space on container ships to keep production and sales moving while facing cash flow pressure as they soaked up rocketing freight rates.
2-minute read
Two of New Zealand’s largest medicinal cannabis companies have signed a supply contract that will pave the way for increased exports.
A five year multi-million-dollar deal between Marlborough-based cultivator Puro and Auckland-based Helius Therapeutics is New Zealand’s largest to date.
