WEEK 21 MARKET UPDATE

US MOVES TO STOP CHINA PARCEL SHIPMENTS BEARING COUNTERFEIT POSTAL LABELS 

U.S. law enforcement authorities have obtained a temporary restraining order barring two logistics companies, one in  New York City and the other in Los Angeles, and their owner from using the U.S. Postal Service to ship packages  containing counterfeit postage. Federal prosecutors last week filed a civil complaint in U.S. District Court for Eastern  New York alleging that YDH Express Inc. and YDH Int’l Inc., and owner-operator Yizhao Hou committed mail fraud for  years by shipping thousands of parcels for Chinese customers through the U.S. Postal Service using counterfeit Postal  Service postage labels, according to a Justice Department news release. The complaint seeks to immediately stop Hou’s  companies from continuing to ship mail parcels and to collect money for financial losses incurred by the Postal Service. “The Postal Service provides essential services to Americans, and we will not tolerate attempts by unscrupulous  overseas businesses using fake postage to unlawfully deprive USPS of revenue it is entitled to,” stated Joseph Nocella Jr.,  the U.S. attorney for the Eastern District of New York. His office worked with the U.S. Postal Inspection Service and U.S.  Customs and Border Protection on the investigation.

US TRADE SURGE COULD TRIGGER PANDEMIC LEVELS OF PORT CONGESTION 

The reduction in tariffs from 145% to 30% on imports from China is expected to give rise to a wave of demand that could  once again swamp US main ports and inland logistics. Congestion in US ports is mounting, a challenge which shipping  lines say they expect to increase, at least in the short term, as American tariff ping pong has seen volumes increase first  to Europe and latterly to the US. During the pandemic poor inland connections including the handling of chassis, and rail  infrastructure saw freight backed up into overflowing warehouses and container storage yards. A shortage of chassis  was caused by the fact, with nowhere to be stacked, containers were being stored on trailers in whatever space was  available, creating a shortage of chassis, shippers complained about a lack of communication about where containers  were and when they could pick them. Costs spiralled out of control. AI solutions to maintain the flow of cargo are now  available, with C3 one example of the emerging technology that offer smart scheduling analyses carrier trends,  processing times, and historical data to optimise dock appointments. AI controlled software, which “prioritises urgent  trailers, assigns shunter tasks efficiently, and suggests the best parking spots, reducing congestion and speeding up  turnaround times.  Ship containers_RTW

MSC CLEARED FOR WILSON SONS TAKEOVER 

Swiss-based liner giant Mediterranean Shipping Co (MSC) has secured regulatory approval for the takeover of Brazilian  port and maritime logistics operator Wilson Sons. London-listed Ocean Wilsons Holdings said in a filing that the sale of  its 56% interest in Wilson Sons to MSC subsidiary Shipping Agencies Services has been accepted by the Brazilian National  Waterway Transportation Agency (ANTAQ).The ANTAQ condition was the final one to be satisfied concerning the  R4.352bn ($768m) transaction now expected to close by June 4.The world’s largest boxline has been seeking to expand  its footprint in Brazil following its acquisition of regional container shipping operator Log-In Logistica in late 2021. Wilson Sons operates the Tecon Rio Grande container terminal in Rio Grande, Rio Grande do Sul, and the Tecon Salvador  container terminal in Salvador, Bahia. The company, whose assets are valued at more than $1bn, also operates one of  the largest tugboat fleets in Latin America. 

CMA CGM SIGNS $600M VIETNAM BOX TERMINAL DEAL 

France’s CMA CGM has penned an agreement with Saigon Newport Corporation (SNP) to develop a new $600m  deepwater terminal in Haiphong, northern Vietnam.The deal covers the design, construction, and operation of the Lach  Huyen terminals 7 and 8, located in Lach Huyen area in Haiphong. The terminal will have a capacity of 1.9m teu and be  put into operation in 2028.CMA CGM runs 29 weekly shipping services through seven ports in Vietnam. The Marseille based company, which holds joint ownership in the Gemalink terminal at Cai Mep and the Vietnam International  Container Terminal in Ho Chi Minh City, stated that the new partnership will help secure long-term capacity in a region  increasingly vital to Asian supply chains, driven by fast-paced industrial and logistics growth.

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