Friday, June 5, 2020
TAPA said that despite many populations being advised to stay at home to help prevent the spread of Covid-19, its Incident Information Service (IIS) was notified of more than 400 thefts of products from supply chains, in 37 countries in the EMEA region, between March 1 and May 27 this year - equating to a value of more than EUR16.4 million (US$18.3 million).In the month of April 2020, TAPA recorded a series of seven-figure losses, including thefts of 2 million face masks in Spain, sports equipment in the UK and mobile phones in Kenya.In 2019 TAPA's IIS recorded 8,548 cargo thefts in 48 countries across EMEA - the highest total in TAPA's 23-year history, and up 114.7 per cent year on year.TAPA noted that the number of reported thefts during the first few months of 2020 was lower than the same period last year; compared with the 400 thefts mentioned above, approximately 2,500 cargo thefts reported to TAPA in the first quarter of 2019, amounting to a value in excess of EUR33 million, according to London's Air Cargo News.With communities and businesses across the EMEA currently working towards 'business as usual', Thorsten Neumann, president and chief executive of TAPA EMEA, said he expects a substantial rise in criminal activity in the supply chain sector."Cargo crime is a 24/7/365 phenomenon, but the outbreak of Covid-19 and the lockdown enforced by governments across the EMEA region, has severely disrupted the activities of both organised crime groups (OCGs) and opportunist cargo thieves," Mr Neumann commented.TAPA said there is an emerging risk for businesses due to the distortion of their supply chains as they return to normal operations, for example: a short term shift to rail between China and Europe, due to less air and sea capacity or excessive airfreight rates; a shift from scheduled to charter freighter flights; or ships not calling at all ports.The result of these changes is that many shipments are moving along unfamiliar routes and through different hubs and cross-docks where risks might not be fully known or assessed, and where transit times may be longer. Congestion at hubs generates additional risks.Mr Neumann added: "Organised crime groups in particular will be looking to make up for lost 'income' during this period [of businesses picking up operations] and this is likely to result in much higher risks for the transport and logistics industry, with trucks remaining most vulnerable to attack."Companies should expect to see a spike in cargo crimes impacting every mode of transport over the rest of 2020 as cargo thieves get back to business."On July 1, TAPA will launch the latest revisions of its facility security requirements and trucking security requirements industry standards used by multinational service providers and SMEs to protect goods being stored in warehouses and while in transit.
The statistics show that average airfreight rates between Shanghai and North America last week dropped by 29.6 per cent compared with a week earlier to US$7.62 per kg.This is the third week in a row that prices on the trade have fallen as congestion at the airport has eased and cargo capacity has reached the same level as a year earlier. However, prices are still far above last year's levels when carriers were able to achieve $3.15 per kg.Meanwhile, average prices from Hong Kong to North America continued to fluctuate, this week dropping by 13.7 per cent to $6.73 per kg. This time last year prices on the trade stood at $3.41 per kg.Statistics from Accenture's Seabury Consulting show that capacity from Asia Pacific to North America is 4 per cent higher than the same week a year ago as more belly capacity comes into the overall market.Meanwhile, on services from Shanghai to Europe, average prices also declined last week - although to a lesser extent than to North America.TAC Index data shows that average rates on the trade were down 11.8 per cent week on week to $8.65 per kg but are far above the $2.44 per kg average recorded last year.From Hong Kong to Europe prices actually increased by 1.2 per cent compared with a week earlier to $6.03 per kg.The performance in rates to Europe reflects capacity on the trade, which is 8 per cent down on a year ago.While the capacity shortage - caused by the coronavirus-related loss of passenger services - is easing on the transpacific and Asia-Europe rates, space remains tight on many other lanes.Transatlantic capacity, for example, is 60 per cent down on a year ago westbound and 52 per cent behind eastbound. South America-Europe is around 80 per cent down in both directions, while South America to North America is 12 per cent behind last year.Overall cargo capacity is 26 per cent down on a year ago, reports London's Air Cargo News.
One shipper said USPS distribution times between the US and Europe have increased from around two weeks to between five-10 weeks since the outbreak of the coronavirus.The space shortage comes as passenger airlines that supplied the majority of the trade lane's cargo capacity have heavily reduced services as a result of the coronavirus outbreak, reports London's Air Cargo News.Todd Bisson, owner of 80 Proof Media Services, a company that sells products online, said that the "rate of undelivered packages has skyrocketed from an irritating but manageable 2-3 per cent to an existential threatening 20-25 per cent"."Further grist for anxiety on the part of merchants and their shipping partners is that it would appear that newer inventory that arrives at USPS is getting out of the country while older inventory just sits somewhere gathering dust," he added.He said that USPS claimed to have chartered aircraft over recent weeks to help clear up the backlog, but added "going by the tracking on hundreds of packages my company has stuck in this holding pattern, perhaps 10 per cent of the backlog has been dealt with".In response a USPS spokesperson reiterated that it had chartered aircraft and was also utilising ocean freight to try and clear the backlog, London's Air Cargo News reported."The Postal Service is heavily reliant on commercial carriers for international mail transport. We have seen delays internationally due to lack of air transportation when passenger volumes dropped."As a result, a significant amount of air transport was lost. We are chartering multiple flights to multiple parts of world, such as Australia, Europe, and Brazil."In limited instances we have utilised sea transportation to address shipping delays. The Postal Service is committed to assisting businesses impacted by the pandemic."Capacity between North America and Europe has shown little signs of increasing over the last few weeks and is far behind the year-ago level.The latest data from Accenture's Seabury Consulting shows that eastbound transatlantic capacity was last week 52 per cent down on a year ago, compared with 54 per cent in mid-May.
Inland Port Greer extends the Port of Charleston's reach upstate via rail. First Solar will move cargo through Inland Port Greer to its new 450,000-square foot distribution hub in Greenville.Headquartered in Arizona, First Solar operates the Western Hemisphere's largest photovoltaic (PV) module manufacturing footprint in Northwest Ohio, as well as factories in Malaysia and Vietnam."Our investment in this distribution hub will help enable our commitments to deliver modules where they're needed when they're needed, thanks to the connectivity that SC Ports is able to offer," said First Solar's logistics chief Bart Verbeke.First Solar will benefit from both the Port of Charleston's access to international markets, such as Vietnam, and its overnight rail connection from the Port of Charleston to Inland Port Greer, SC Ports' inland operation in upstate South Carolina.First Solar anticipates bringing up to 7,000 containers per year through the Port of Charleston, beginning in late May. Upon arrival at Inland Port Greer, cargo will be transported to First Solar's nearby distribution hub in Greenville.Said SC Ports Authority president and CEO Jim Newsome: "SC Ports offers access to global markets, efficiently run terminals and rail-supported inland ports to meet our customers' needs. We look forward to supporting First Solar's efforts to deliver American-designed solar modules to their customers in the United States."
The ship docked at Rotterdam's Amaliahaven to transfer containers at the Rotterdam World Gateway (RWG) terminal after travelling from the Chinese port of Yantian on its maiden voyage.HMM Algeciras is deployed on THE Alliances's Far East Europe 4 (FE4) service with a port rotation starting at Qingdao, Busan, Ningbo, Shanghai, Yantian, Rotterdam, Hamburg, Antwerp and London, and returning via the Suez Canal and Singapore.The vessel is scheduled to depart for Hamburg on the morning of June 6.The HMM Algeciras was delivered to South Korea's HMM in April by Daewoo Shipbuilding and Engineering (DSME). At 23,964 TEU, the ship is the current title-holder in the ranking of the largest ship in the world. The vessel measures some 399.9 metres in length and 61 metres beam.HMM Algeciras is the first of twelve 24,000 TEU-class vessels ordered in September 2018 as part an order for 20 ultra-large containerships split among South Korea's 'Big 3' shipyards - DSME, Samsung Heavy Industries (SHI) and Hyundai Heavy Industries (HHI). Out of the twelve, DSME is construction seven of this ships while SHI is constructing the other five, all of which are planned for delivery this year. HHI is construction the other eight smaller 16,000 TEU ships for delivery in 2021.Hyundai Merchant Marine now operates under its new name, HMM, and is the ninth largest container shipping line in the world.
Effective June 15, (B/L date), the general rate restoration (GRR) for all types of cargo (dry, reefer, OOG and breakbulk) transported from Asia including China, Taiwan, South Korea, South East Asia, East Coast of India, Bangladesh & Sri Lanka (Japan excluded) to all ports in Kenya, Tanzania and Mozambique will be US$200 per TEU.
The world's fourth-largest container shipping group, headquartered in the Mediterranean port of Marseille, was citing objectives set out by chairman and chief executive Rodolphe Saade during a United Nations conference.The French group, privately controlled by the Saade family, said it had already met an initial UN target for the shipping industry to reduce carbon dioxide emissions by 40 per cent in 2030 compared with 2008.Market leader Maersk in also aiming to reduce its net carbon emissions to zero by 2050, reports Reuters.
The idle containership fleet stood at 2.72 million TEU as of May 25, or 11.6 per cent of capacity, due to a combination of blank sailings to mitigate the impact of lower demand from the Covid-19 pandemic and vessels taken out of service for scrubber retrofits.Some 64 vessels with a total capacity of 571,858 TEU that are inactive are currently undergoing scrubber retrofits meaning that the portion of fleet taken out service to manage capacity has passed the 2 million TEU mark.According to Alphaliner's weekly newsletter the world's two largest container lines - Maersk and MSC - account for the largest portion of the idle fleet with a combined total of 845,000 TEU out of service. However, more than half this figure relates to vessels undergoing scrubber retrofits, reports Seatrade Maritime News, Colchester, UK.Alphaliner said it expected the inactive fleet to peak shortly as lockdowns in many countries start to ease and demand recovers. "There are encouraging signs that carriers have over-estimated the level of demand contraction in May, and capacity shortages on certain routes have already started to push spot freight rates up."