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LA-LB Container Dwell-Fee Postponed Again, Major Drug Ring Using Air Freight Carrier Caught, CP Reopens Vancouver Rail System

By November 26, 2021 No Comments

Ocean  

In Port Everglades, the USCG unloads 26,000 pounds of cocaine. The crew of the USCG cutter Hamilton unloaded more than 26,000 pounds of cocaine worth about $500 million onto a dock in Port Everglades, Florida. It’s the ship’s largest single delivery of seized narcotics. The drugs were intercepted and recovered during eight interdictions by three American and Canadian ships – the Hamilton, the cutter Vigilant, and the Royal Canadian Navy’s HMCS Harry DeWolf – in international seas of the Eastern Pacific off the shores of Mexico, Central America, and South America.

Ship fuel price reaches a peak since 2013. The cost of marine fuel at the ports has increased in lockstep with the cost of gasoline at the local pump. The cost of crossing the oceans has grown for cargo ships, tankers, and dry bulk carriers since 2013. According to Ship & Bunker, the price of VLSFO (very low sulfur fuel oil) at the world’s top 20 ports was $619.50 per ton, up 47% from the start of the year. On Nov. 10, the top-20 VLSFO average reached a new high of $639 per ton.

Ports

In North Carolina, a new inland port has opened. Another inland port facility will help move freight along the Eastern Seaboard as the nation’s main seaports become increasingly congested. The Carolina Connector is a 330-acre facility near Rocky Mount, North Carolina, that transfers cargo containers from trucks to trains. 

LA-LB container fee postponed once again. The ports of Los Angeles and Long Beach have delayed the collection of storage fees for long-dwelling ocean containers for the second time, claiming that on-dock stocks of boxes have decreased by a third since the fines were initially announced. After meeting with Biden administration port envoy John Porcari and port customers, the two ports announced that the container dwell tax, which was set to begin on Nov. 22, will now begin on Nov. 29. This is the second postponement of the charge, which was set to go into effect on Nov. 15. If you have questions about the emergency Container Excess Dwell Fee program, contact one of our experts.

Air

Air freight between China and the United States is under pressure due to port congestion ahead of the holidays. Many businesses have turned to air freight as the United States continues to struggle with port congestion and other logistics issues ahead of the holiday shopping season. Due to strong demand, even the more expensive alternative is now experiencing a major capacity shortage, lengthy wait times, and rising pricing. Air freight fares are up 10-20% compared to August and September, due to increased demand. Even with greater costs, traders must still wait a long time to book space for their cargo.

A major narcotics ring that used an air freight carrier was caught in Gujarat. An official confirmed that Gujarat police detained four people over a week and dismantled a huge drug ring in which traffickers from Ahmedabad imported 100 kg of narcotics, including cocaine, from the U.S. and other areas of the nation by air cargo carrier in the last two years.

CMA CGM is the second company to invest in A350 freighters. CMA CGM has become the second business to order Airbus’ new A350 freighter, as they continue to expand their presence in the air cargo sector. The shipping firm, which started its CMA CGM Air Cargo division earlier this year, is expected to buy four of the aircraft. Airbus expects the agreement to be finalized in the “coming weeks,” only days after Air Lease placed the first tentative order for seven of the type at the Dubai air show.

Air Canada increases cargo capacity to help alleviate the supply chain crisis in B.C. Following the heavy flooding that shut off highway access to the city, Air Canada says expanded cargo capacity into and out of Vancouver. Between Nov. 21 and 30, the airline reports it added capacity to the city from its hubs in Toronto, Montreal, and Calgary. To boost cargo capacity, Air Canada is rescheduling 28 passenger trips to use bigger wide-body aircraft instead of narrow-body aircraft. There will also be 13 all-cargo flights added. Air Canada claims to be increasing 586 tonnes of cargo capacity in total.

Trucking

Beginning in Jan. 2022, non-U.S. truckers crossing the border must be vaccinated. President Joe Biden plans to declare on Jan. 22 that important nonresident travelers crossing U.S. land borders, such as truck drivers, government, and emergency response professionals, would be required to be completely vaccinated. According to a senior administration official, the requirement, which was first announced by the White House in October, aligns the rules for essential travelers with those that went into effect earlier this month for leisure travelers when the United States reopened its borders to fully vaccinated individuals.

For the first time since September, diesel price drops. According to Energy Information Administration (EIA) statistics issued Nov. 22, the national average price for a gallon of diesel reversed course and fell for the first time in more than two months, falling 1 cent to $3.724 per gallon. The major gasoline used by trucks currently costs $1.262 more per gallon than it did in 2020. In the EIA’s weekly survey, the average price fell in six of the ten areas; the highest drop was 1.7 cents in the East Coast and Gulf Coast.

Rail

Canadian Pacific (CP) plans to reopen the Vancouver rail system. The CP Railway announced that intermodal train service to and from the Port of Vancouver would resume on Nov.23, after the completion of repairs to lines damaged by heavy floods a little over a week ago. On its mainline, Canadian National Railway hopes to restart service late on Nov. 24. In a statement, CP said it restored 30 spots across two key sections of its British Columbia trackage, with 20 of them experiencing “severe infrastructure loss.”

Other

Despite GOP criticism, Biden issues new orders to alleviate supply chain bottlenecks. The Biden Administration took another step toward tackling supply chain issues that threaten to interrupt holiday product deliveries. The White House issued new instructions to speed up the movement of freight at critical hubs shortly after President Biden signed a $1 trillion infrastructure bill into law earlier this month.  A new executive order issued in conjunction with the implementation of the Infrastructure Investment and Jobs Act requires federal agencies to promote programs and regulations that support commercial supply chains and domestic manufacturing.

Ahead of the holidays, Gap’s sales hampered by supply-chain issues. Even as huge retailers such as Walmart Inc. claim they have adequate inventory for the holidays, Gap Inc. has joined a growing list of clothing stores fighting to keep their shelves supplied. Gap‘s net sales for the quarter ended Oct. 30 were $3.9 billion, flat with 2020 and 1% lower than 2019. As a result of the ongoing effects of the Covid-19 pandemic, the business stated its brands were unable to fulfill significant demand from customers, resulting in production closures and blocked ports. In after-hours trade, shares fell by 17%.

USPS hires hundreds and leases extra space for the holidays. USPS says it is prepared for the expected surge of Christmas parcels and cards, a year after COVID-19 employee shortages delayed mail and shipments. USPS has employed several hundred seasonal employees to process, carry, and distribute mail, according to a spokesman for the Alabama-Mississippi District. Additionally, USPS has leased a facility in the Birmingham region where extra package sorting equipment has been installed.

US Department of Transportation (USDOT) awards $1 billion in infrastructure grants. USDOT has announced that over $1 billion in federal funding will be granted to infrastructure projects around the country that are related to freight and passenger networks. The Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary funding, according to Secretary of Transportation Pete Buttigieg, would be used to target over 90 projects in 47 states, as well as Washington, D.C., and Guam.

Walmart now offering drone deliveries. Walmart began commercial drone delivery for online customers in northwest Arkansas this week, starting with a Walmart Neighborhood Market in Farmington, in collaboration with tech partner DroneUp. The drone delivery service will be available 7-days a week from 8 a.m. to 8 p.m., delivering things to qualifying Walmart customers in as little as 30 minutes.