COVID-19 Latest Updates

Typhoon Chanthu Hits China, Tropical Storm Nicholas Prompts Port Restrictions, & UP Raises Surcharges

By September 16, 2021 No Comments

Ocean  

Typhoon Chanthu hits Shanghai and Ningbo-Zhoushan in China, causing more supply chain disruptions and more confusing shipping schedules.  In a region with two of the world’s top five ports, Typhoon Chanthu has made landfall, bringing torrential rains and causing power outages. As the typhoon approached China, it weakened, but still prompted officials to close the Ningbo and Shanghai ports, an area with the densest concentration of container port infrastructure on earth that handles more than 70 million TEU worth of container traffic every year

Vessel schedules are likely to see heavy delays as the week continues. This typhoon is the latest event to cause supply chain disruptions, after COVID-19 forced port closures at Ningbo and most notably, the Yantian International Container Terminal in Shenzhen. If you have any questions about vessel schedules out of China, don’t hesitate to contact one of our experts.  

CMA CGM halts spot rate hikes through January of 2022. As the market heads into a congested peak season with record container prices, CMA CGM has suspended all spot rate hikes until February 1, 2022. This suspension comes as an effort to prioritize long-term customer relationships in an unprecedented situation for the shipping industry. 

Unprecedented import volumes are expected to continue well into 2022. As COVID-19 continues, congested warehouses fill up, containers continue to sit at ports, a lack of vessel capacity, and a shortage of chassis, it’s expected that import volumes won’t slow down until after the Lunar New Year in 2022

Customs

Adjustments to the 2022 COBRA Customs user fees and limitations will start October 1. Customs implemented adjustments to some COBRA customs user fees in the Certification and Production environments, which will be fully implemented on October 1. Some adjustments include changing minimums and maximums for Merchandise Processing Fees and changing the fee for informal entry or release. View the list of changes in a notice from the Federal Register online.  

Ports 

Tropical Storm Nicholas prompts ports to enact restrictions. The Port of Houston is prohibiting inbound ship movements, but full port operations should be resumed. There are potential flooding and power outages in the area, which may increase hold times. As the week goes on, the storm will weaken to a tropical depression as it continues through Texas and Louisiana. 

Baltimore receives new cranes for a berth expansion project. The Port of Baltimore received four all-electric cranes last week and will put them into commission in early 2022. This is the final step that’s necessary to open a second berth and enable the port’s Seagirt Marine Terminal to handle post-Panamax vessels simultaneously.

Air

Typhoon in China forces flights from Shanghai to be canceled and cause more supply chain disruptions. Due to a typhoon that has brought heavy rain to China’s east coast, Shanghai’s two airports have canceled nearly 80% of all flights, causing more delays and disruptions to already congested supply chains and ports. 

Trucking 

Trucking rates rise in the Northeast amid a cargo shift from LA-LB. In the last six weeks, trucking rates have risen out of the Northeast, which is the result of a spike in demand from shippers using the Port of New York and New Jersey to avoid the congestion at LA-LB. The increase in demand for truckloads is to increase “supply chain velocity and move the goods inland closer to the point of consumption.” 

Rail

Union Pacific (UP) raises surcharges in Los Angeles, Dallas, and Houston. For the fifth time this year, UP raises surcharges again in Los Angeles and will implement charges in Houston and Dallas for the first time in recent years. These surcharges will be effective September 19 and are due to capacity struggles and higher chassis dwell and domestic container times.  

Other

Exporters have written to President Biden urging the administration to do more to solve the supply chain crisis. They urged the President to take steps like supporting the new Ocean Shipping Reform Act and provide federal support for the deployment of port and national data-sharing portals. Read more about this situation in an article by the Loadstar