12/2/2015

Read the latest news and updates from Hapag-Lloyd, TSA and more

To our valued customers:

Please find below our weekly digest of the latest logistics trends, news and updates:

• Hapag-Lloyd updates
• Proof of delivery fee to be implemented 9 March 2015
• North America – Friendly reminder on accurate weight reporting
• SOLAS weight reporting requirements effective 1 July 2016
• Major rate hikes to be imposed by TSA’s 15 member lines
• Increased rate per FEU to the US West Coast effective 1 May 2015
• Increased rate per FEU to the US East and Gulf Coast
• Increased Continental Inland point rates per FEU to the Chicago
  container yard
• List of TSA Members
• Dockworkers remain silent amidst US West Coast employers go public with offer
• Increased LA-Long Beach Port congestion reaches crisis point, similar problems happening in US West Coast, too
• Impact of the LA-Long Beach port congestion to industry
• Virginia Port Authority faces increased inefficiency as truck waiting time remains unresolved
• OECD boldly predicts North Pacific will surpass North Atlantic Cargo by 2050
• Reduced funding for US ports ‘highly probable’

Hapag-Lloyd updates

Below are the recent updates issued by Hapag-Lloyd.

Proof of delivery fee to be implemented 9 March 2015

Effective 9 March 2015, Hapag-Lloyd will implement a Proof of Delivery fee for US Imports. A USD 50 Administrative Fee Destination (ADD) will apply for each Proof of Delivery request received, in cases where proof must be provided on the Trucker’s receipt.

North America – Friendly reminder on accurate weight reporting

We wish to remind you of the importance of accurate weight reporting. In order to efficiently and safely transport intermodal containers, our vendors require the most accurate weight to be reported.

In the case that cargo weight is not accurate, shipments may be re-worked in order to be carried safely or, if this is not possible, such shipments may be terminated prior to final delivery.

When this occurs, significant costs may arise for the account of the customer inclusive of, but not limited to fines, penalties, etc.

SOLAS weight reporting requirements effective 1 July 2016

Effective 1 July 2016, cargo weights must be verified prior to shipping. Please refer to the recent summary made by the World Shipping Council. Click here to full details.

Major rate hikes to be imposed by TSA’s 15 member lines

Transpacific Stabilization Agreement (TSA’s) 15 member container lines have agreed on a range of big rate increases and contract minimum prices to be exacted this year.

It reaffirmed support for its previously announced US$600 per FEU across-the-board rate increase from February 9. It further “indicated” that that increase would be followed by another $600 per FEU hike from March 9, with an April rise likely to follow. Member lines have also settled on augmentations of previously announced contract rates to reflect increases of $300 per FEU for the US east/Gulf coast minimum, and $200 per FEU to the Chicago container yard as an intermodal minimum.

Here are the other expected increased rate per FEU as per TSA agreed range of big rate increase on other routes:

Increased rate per FEU to the US West Coast effective 1 May 2015

• US$2000 from North Asia
• US$2150 from Southeast Asia

Increased rate per FEU to the US East and Gulf Coast

• US$3800 from North Asia
• US$3950 from Southeast Asia

Increased Continental Inland point rates per FEU to the Chicago container yard

• US$4100 from North Asia
• US$4250 from Southeast Asia

Intermodal rates to all other inland points destinations will be set at a minimum $1,000 per FEU above the old May 1, 2014 all-in levels. All minimum rates are based on a second quarter 2015 bunker charge level, to be published in late February.

List of TSA Members

• APL
• “K” Line
• China Shipping
• CMA-CGM
• Maersk
• Marine Transport Limited
• MSC
• Cosco
• NYK
• Evergreen Line
• OOCL
• Hapag-Lloyd
• Hanjin
• Yang Ming
• Zim

Dockworkers remain silent amidst US West Coast employers go public with offer

After months of secret talks have failed, US West Coast Waterfront employees of the Pacific Maritime Association (PMA) publicly announced a 3% wage increase in a five-year contract. However, International Longshore and Warehouse Union (ILWU) made a statement ignoring the substance of the offer and instead focused on their desire to continue the deadlocked talks.

Read how this eventually resulted to a “West Coast vessel loading and unloading halted during the weekend.”

The PMA and ILWU have been in talks since 12 May 2014 to replace a contract covering 20,000 Dockers in 29 US west coast ports that expired on July 1. With full time Dockers making an average of US$147,000 a year, the PMA now offers to raise wages from US$35.68 per hour to $40.68, with “multipliers” for extra skills, night work and overtime. Part of the PMA deal is a fully paid health plan costing employers $35,000 a year, said the report. Employers also agreed to pay Obama care’s “Cadillac tax” on high-benefit schemes. This as well as a pension of 11 per cent of wages up to $88,800 a year.

The public is yet to be informed if the offer will be accepted.

Increased LA-Long Beach Port congestion reaches crisis point, similar problems happening in US West Coast, too

CONGESTION at LA-Long Beach Port has reached a crisis point with 20 box ships awaiting berths for seven to 14 days, then only to wait another week for cargo discharge. Similar problems occur in the US West Coast ports as Canadian exporters are missing shippings because of ship delays.

Canadian International Freight Forwarders Association executive director Ruth Snowden said Canadians expecting 30-day transit, find they face at least another 10 to 12-day delays and in some cases up to three weeks because ships are waiting in US west coast ports.

Impact of the LA-Long Beach port congestion to industry

“Carriers now shorten loading windows to restore schedules, leaving Canadian exporters in lurch in the Port Metro Vancouver,” she told the Cargo Logistics Canada conference in Vancouver

“The impact of the delays are worse than they need to be because some carriers fail to report their failings to shippers, and when they do, it’s too late. Missed loadings, because of narrower loading windows or cancelled sailings, cause shipments to pile up, preventing other exporters getting their loads into terminals.

“Asia pulp importers are particularly upset, and there’s serious concern that we’ll lose share in that market” because Canadians are failing to meet delivery dates,” she said.

Virginia Port Authority faces increased inefficiency as truck waiting time remains unresolved

Port’s maritime community is scheduled to meet for the second time in three months to discuss the new strategies that will resolve congestion outside the port’s container terminals. The Virginia Port Authority has been unable to keep up with the surge in truck volume that rose 13.5 percent in December, which has sparked delays of up to four hours.

“The challenges we face today come from not having invested properly in modern conveyance systems. Now, we’re behind,” said port authority spokesman Joe Harris. “We’re in a game of catch-up.” “Horrible is a great word for it,” said Norfolk’s Carroll Trucking boss Matt Carroll, commenting on the queues outside Norfolk International Terminals, the port’s largest cargo facility.

Stakeholders are considering ways to address this problem, including improving truckers’ access to chassis, simplifying policies on picking up and dropping off empty containers, increased use of off-peak hours, and better regulation of gate hours. Fifty industry insiders attended the second summit, a three-hour brainstorming session in downtown Norfolk sponsored by the port authority and the Virginia Maritime Association.

OECD boldly predicts North Pacific will surpass North Atlantic Cargo by 2050

The Organization for Economic Co-operation and Development (OECD) agency report predicts that North Pacific will surpass North Atlantic as the world’s busiest trading corridor in terms of freight volume per ton-mile. Growing 100 per cent faster than the North Atlantic, North Pacific’s trade volume is expected to quadruple in 30 years.

Based on lower base numbers, OECD’s International Transport Forum Outlook (ITF) 2015 also predicts that African trade will grow by 715 percent and intra-Asian volume by 403 percent.

Reduced funding for US ports ‘highly probable’

Charleston and Savannah are set to gain from US President Barrack Obama’s fiscal 2016 budget request. But overall port funding falls short of the targets set by legislation he signed six months ago referred to as the Harbour Maintenance Tax (HMT).

Through Obama’s budget, ports would receive only $915 million for maintenance dredging and other work. This is $1 billion less than they are set to receive in fiscal 2015, which ends September 30. However, WRRDA calls for US ports to receive $1.32 billion back from the government in fiscal 2016.

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