COVID-19 Latest Updates

U.S. Congress Approves $1 Trillion Infrastructure Bill, Texas Builds Border Wall Out of Shipping Containers, PS5 Christmas Stock Saved by Korean Air

By November 11, 2021 No Comments

Ocean  

Evergreen invests profits on box ships and containers. Evergreen has placed an order for two 24,000 teu ships from China’s Jiangnan shipyard, as well as 55,500 containers from three different manufacturers, to expand its fleet and equipment capacity. The newbuildings will cost between $140 and $160 million each, with completion scheduled for 2024-2025. Evergreen will spend $338.5 million on the new containers. They will be delivered in mid-2022 and consist of 20ft and 40ft units.

Customs

U.S. lifts tariffs on steel and aluminum from the EU. The U.S. stated on Oct. 31 that it will end Section 232 tariffs on a specific volume of steel and aluminum imports from the European Union, while the EU has decided not to impose retaliatory tariffs on certain U.S. commodities that were planned to go into effect on Dec. 1. Access this document from the Commerce Department for more information.

Ports

Ports experiencing communication breakdown with U.S. Customs affecting port planning. According to American Shipper, a communication gap between US Customs and Border Protection and the ports has left the ports unaware of the arrival of nonscheduled charters. Approximately five unscheduled vessels are waiting in the Port of Long Beach, while the number of unscheduled vessels in the Port of Los Angeles has been constantly high. The lack of data sharing is affecting the ports’ ability to plan for container processing as well as adding to the significant bottleneck in San Pedro Bay.

Air

DHL Express confirms the addition of a new Austrian airline. To stabilize their air freight network, DHL Express has launched a new airline located in Austria, with a roster of 18 B757 freighters. DHL Air Austria, the new airline, will be based at Vienna Airport, which is said to be geographically in the center of Europe.

Korean Air saves PS5 Christmas stock. Worldwide demand for Sony’s Playstation 5 (PS5) is booming. In the U.K., for example, finding this console for sale has become nearly impossible, especially ahead of Christmas. Sony hired four Korean Air cargo planes powered by the iconic Boeing 747F to deliver a supply of PS5’s to the U.K. According to local media, each plane was supplied with 50 special plates to transport the PS5. As a result, 12 trucks were assigned to the cargo so that it could be unloaded and distributed across retailers in a timely manner.

Trans-Pacific air cargo rates are at all-time highs. Trans-Pacific air freight has been in peak season for more than a year, but as demand surges in the fourth quarter, air charter rates for freighters have skyrocketed ahead of November’s holiday-themed online shopping campaigns. With U.S. importers filling all available capacity, there are no indications of demand easing from shippers forced out of congested ocean trades. IAG Cargo expects demand to return to 2019 levels. IAG Cargo’s cargo revenues and volumes increased in the third quarter of the year, surpassing those of the previous year. The third quarter’s total cargo revenues were €405 million, up 34.1 percent from the previous quarter. Meanwhile, the number of sold cargo tonnes climbed to 134,000, up from 94,000 in 2020. IAG Cargo also noticed an increase in conversions from ocean freight as shippers switched to airfreight to mitigate the impact of supply chain disruptions.

Trucking

Diesel increases by just 0.3 cents to $3.730. According to Energy Information Administration (EIA) data posted on Nov. 8, the national average for diesel barely moved, rising three-tenths of a cent to $3.730 per gallon. After a 1.4-cent increase on November 1, the new price is the second consecutive slight increase. Diesel now costs $1.347 more per gallon than it did in 2020 at this time.

Rail

BNSF’s net income increased by 14% in the third quarter. BNSF’s third-quarter net profit increased by 14% to $1.5 billion, the western U.S. railroad reports. In the third quarter, total revenues were $5.8 billion, up 12% year over year from roughly $5.2 billion. The average revenue per car/unit increased by 5%, reaching $2,128 from $2,021 the previous year.

Other

Texas is recycling shipping containers to close gaps in its border security plan with Mexico. According to officials, the shipping containers began being installed as barriers along areas of the US-Mexico border near Eagle Pass, Texas, in late October, at low-level water crossings to physically block entry from Mexico.

Out-of-stock goods a growing problem for online shoppers. Online buyers in the U.S. are discovering that virtual store shelves are becoming increasingly bare as the holidays approach. In a study released Nov. 9, Adobe Analytics found that consumers received 2 billion out-of-stock alerts last month. The number of out-of-stock messages increased by a third from a year ago, based on total page visits that include available goods. The rise demonstrates how port bottlenecks and a shortage of trucking capacity are affecting consumers.

Weekly supply chain disruption roundup from NCBFAA. The Logistics Subcommittee of the NCBFAA Transportation Committee collects data on rail delays and port bottlenecks that affect the supply chain and your business operations regularly. For your convenience, the Logistics Subcommittee has compiled the most recent statistics in the form of an Excel spreadsheet. The spreadsheet for this week contains critical information about actions at the ports of Los Angeles and Long Beach, as well as the ports of New York and New Jersey.

$1.2 trillion infrastructure bill approved by U.S. Congress. President Joe Biden is about to sign a record $1.2 trillion infrastructure measure that includes a five-year extension of the highway bill, as well as a program to attract younger drivers and other provisions affecting truckers. The Infrastructure Investment and Jobs Act (IIJA) was enacted by a vote of 228-206 in the Democrat-controlled House chamber on Nov. 5.