COVID-19 Latest Updates

CMA CGM Still Recovering, Massive Delays at Canadian Ports, and IMO Investigating Demurrage Charges

By October 8, 2020 No Comments

Supply chain activity is still moving slowly this week, as CMA CGM continues to fight to regain control over their systems after a massive cyberattack. Communication with the shipping giant remains strained, and many of their sites are still down. Late last week, the International Maritime Organization (IMO) also had its systems compromised, causing some delays and service interruptions. Officials at the IMO suspect that the incident is associated with the attack of CMA CGM, but report that communications from both parties remain secure.

Ports

More than a month after the resolution of strikes at the Port of Montreal, shippers across North America are still feeling the effects. The strikes, which crippled operations for a month, caused vessels and rail operators to divert to other ports, leaving major imbalances. As a result, ports across Canada remain severely congested and are expected to remain that way into November.

Ocean

As Trans-pacific demand continues to grow, ocean carriers continue to boost capacity. Although available capacity is set to increase by more than 25% over the next three weeks, some shippers may still be paying extra for guaranteed equipment.

The Federal Maritime Commission (FMC) gave notice of an inquiry into the handling of demurrage and detention billing by ocean carriers. The inquiry, which will investigate whether carriers charged the wrong parties, is open to comments until November 6th.

Air

Air capacity remains constrained and is expected to stay that way for a while. With peak demand remaining high for electronics and other holiday goods from Asia, some are looking toward other potential troubles. As the U.S. prepares for a COVID-19 vaccine as early as next spring, some question just how the air cargo market will be impacted.

Trucking

The Ports of Los Angeles and Long Beach are celebrating this week, after the opening of the new Gerald Desmond Bridge. The bridge, which has been under construction since 2013, will improve the flow of traffic and hopefully ease the massive congestion in the area.

As domestic trucking capacity hits record lows, experts are noting that hiring hasn’t followed pace. The trucking industry, which cut many jobs in spring, is still fighting to recover lost revenue. As such, driver hiring may be delayed as a means to save up cash and keep capacity low.