Shipping industry passes earnings peak in third quarter. The container shipping industry earned profits of $58.9 billion in the third quarter, down 6.6% from the $63.7 billion earned in this year’s second quarter, breaking a streak of seven straight record quarters for the sector and effectively passing the peak of earnings. The downturn in earnings is expected to continue in the quarters ahead as overall pricing in the sector continues to ease.
FMC approves chassis pool in Southeast U.S. The formation of a chassis pool in the Southeast US covering three ports in Florida, Georgia, and North Carolina has been approved by the US Federal Maritime Commission (FMC). Port officials say that the move will “expand the fleet and improve the quality and reliability of the equipment necessary to move containerized cargo,” JOC reports.
East Coast imports surge as contract talks drag in the West. Import volumes from Asia are continuing to surge at ports along the U.S. East and Gulf coasts as a result of delays in longshore labor negotiations on the West Coast. It’s a sign that retailers have steadily shifted discretionary cargo away from the West Coast as a way to avoid potential disruptions linked to the contract talks.
Benchmark diesel price used for most fuel surcharges continues to fall. The average weekly retail diesel price fell 9.2 cents per gallon to $5.141, according to the price posted Monday by the Department of Energy’s Energy Information Administration. The 9.2-cent decline is the largest one-week drop since falling 14.5 cents on Aug. 8. Diesel prices are now down 20 cents in five weeks.
U.S. House of Representatives passes resolution to head off rail strike. The House passed a resolution on Wednesday to head off the potential rail strike by imposing that the tentatively agreed upon terms from September be accepted by a vote of 290-237. They also added on a subsequent bill/resolution that would guarantee 7 days sick time to meet a portion of what the unions had been holding out for. The bill will move immediately to the Senate and will go through their presentation and voting process. Radiant Road & Rail is providing updates on the information here.
UPS to maintain money-back guarantee on domestic, international next-day air deliveries. UPS Inc. announced on Monday that it will “maintain its money-back guarantees for peak-season deliveries of next-day air shipments in domestic and international commerce,” according to FreightWaves. The move by UPS counters the decision made by FedEx Corp. earlier this month to suspend money-back guarantees for peak-season deliveries of air express shipments within the U.S. and for export from the country.
China could ease covid restrictions following mass protests, marking a positive shift for shipping industry. Beijing’s zero covid stance looks to be easing in the wake of unprecedented protests throughout China. Strict protocols in the country have impeded industrial production since the pandemic began and put a brake on shipping earnings, according to Splash247. Vice premier Sun Chunlan said at a meeting with experts at the National Health Commission: “With the weakening of the pathogenicity of the omicron virus, the popularization of vaccination and the accumulation of prevention and control experience, China is facing a new situation and new tasks in epidemic prevention and control.”
Amazon shows off new drone for 30 minute deliveries. Amazon showed off its new “next-generation” drone at a recent event to show the future of delivery for the company. The drone is about 5½ feet in diameter, and will be able to make deliveries in highly populated areas such as Boston, Atlanta and Seattle. Amazon’s goal is to deliver 500 million packages a year by drone in cities by the end of the decade, Amazon Prime Air vice president David Carbon told reporters.