April 10, 2023
Supply Chain Snapshots - News of the Week (April 10, 2023)
Monday, April 10, 2023
1. Mixed Signals: Container Shipping Downturn Not Following the Script
(Read more on FreightWaves)
Charter rates are up, as are charter durations. Demolitions are down, as is commercially idle capacity. None of this falls in line with what the shipping industry was expected to do during the predicted cyclical downturn this year. Using data from Alphaliner, this article digs into the numbers and adds insight to the situation and why many within the industry are optimistic about the remainder of 2023.
2. Shippers Brace for Freight Rate and BAF Increase Onslaught
(Read more on The LoadStar)
Lower demand, combined with higher capacity availability and fuel prices, has carriers looking to restore their rates to sustainable levels while shippers brace for just what that will mean to their bottom line. Hapag-Lloyd was first off the line with the recent announcement of a $1,000 per 40ft increase on shipments from Asia to the US effective May 1st.
3. Maersk Plans To Nearly Double Rotterdam Terminal Capacity by 2026
(Read more on The Maritime Executive)
APM Terminals, the terminal operations arm of AP Moller-Maersk, recently signed an agreement that will nearly double the company's presence at the Port of Rotterdam facility. Sitting on nearly 117 acres of land reclaimed from the North Sea, the expansion will take them from 2.7 million TEUs of annual through capacity to 4.7 million.
4. Managing Fashion’s Inventory Influx
(Read more on Women’s Wear Daily)
First pandemic-induced buying sprees, then supply chain disruptions, followed by more disjointed consumer spending habits have major fashion brands scratching their heads. And while they do that, they’re also sitting on overstocked warehouse shelves and stores full of goods going unsold. All of this has many brands taking stock…of their operating models.
5. West Coast Port Terminals Temporarily Shut on Labor Shortage
(Read more on Bloomberg)
The twin ports of Los Angeles and Long Beach were closed due to labor shortages as of 5:00pm Thursday, with no information available as of publication as to when they would be able to reopen. It’s unclear whether this has any connection to the ongoing talks between The Pacific Maritime Association, representing the terminal and port operators, and The International Longshore and Warehouse Union, who represent upwards of 22,000 dockworkers up and down the U.S. West Coast.
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