PORT OF NEW YORK MOVES AHEAD WITH NEW THRESHOLD FOR EMPTY CONTAINER FEE ON OCEAN CARRIERS
The Port of New York and New Jersey is moving ahead with new shipping container requirements for ocean carriers and fees for violations. The container late fee, which was originally to be implemented on Sept. 1, was delayed allowing for talks with ocean carriers about their concerns. U.S. ports already have the highest container fees in the world. Shippers have come to rely on East Coast ports more due to concerns about labor issues on the West Coast at ports including LA and Long Beach. The Port of New York recently became the nation’s busiest port, surpassing the traffic at the California ports. Amid the supply chain congestion issues of the pandemic era, new shipping routes from the East Coast ports to the West relying on rail have become more popular.
TERMINAL UPGRADE COMPLETED AT PORT OF BOSTON
The Massachusetts Port Authority (Massport) has announced the completion of nearly $850m in infrastructure projects to modernise the Paul W. Conley Terminal at the Port of Boston.
Prior to the port’s modernisation, Conley offered two services reaching seven major global ports. With the completion of these infrastructure investments, Conley Terminal now offers direct connectivity to China, North Europe, Southeast Asia including Vietnam and India, the Mediterranean, Middle East and Latin America through five services, with a sixth service scheduled to start this month. The port now provides direct connectivity to 25 global ports.
CMA CGM TO IMPLIMENT NEW PEAK SEASON SURCHARGES FROM US
CMA CGM has announced fresh peak season surcharges (PSS), effective from 1 October until 31 December, from the United States to Latin America and the Caribbean. The largest PSS will be applied from the US East Coast (New York, Baltimore, Savannah, Charleston and Port Everglades) to Anguilla, Antigua & Barbuda, Aruba, Barbados, Bonaire, British Virgin Islands, Curacao, Dominica, Dominican Republic, Haiti, Grenada, Guyana, Jamaica, Montserrat, Saba, St Eustatius, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Suriname, Tortola and Trinidad & Tobago. The PSS will be US$125 per 20′ dry and reefer and US$250 per 40′ dry & reefer for all types of containers except flat and open top boxes. In the same period, CMA CGM will implement another surcharge from the port of Oakland to Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama. The PSS will be US$25 per 20′ dry and reefer and US$50 per 40′ dry and reefer for all types of containers except flat and open top boxes. Last but not least, the Marseille-based liner operator announced a PSS of US$50 per 20′ dry and reefer and US$100 per 40′ dry and reefer for the same types of boxes and for the same period from the port of Houston to Guatemala and Honduras.
OCEAN FREIGHT ORDERS ARE SIGNALING A BIG DROP IN CONSUMER DEMAND
A significant consumer pullback is showing up in ocean shipping, with logistics managers saying that they have seen a 20% drop in ocean freight orders for the months of September and October. The decline in demand cuts across many products, including machinery, housing, industrial and some apparel. Logistics CEOs explains the reason is a combination of too much inventory coupled with a lack of clarity on consumer demand.
APL PRESSES AHEAD WITH LAWSUIT AGAINST MATSON
CMA CGM subsidiary APL has been allowed by a federal judge in Washington DC to move ahead with an antitrust lawsuit it is bringing against rival Matson over services connecting the US with Guam.
APL claims Matson has violated US competition law. APL said in its complaint that after it entered the market in 2015 for US to Guam shipments, Matson took a series of anticompetitive steps to maintain its power. Matson has denied such behaviour and hit out at APL’s schedule reliability.