Shipping

U.S. Customs and Border Protection officers seized nearly $3 million in methamphetamine and heroin at a Texas crossing Tuesday. Officials report the 142 pounds of drugs were stashed in a shipment of carrots.

European ports are suffering a “perfect storm” from Covid and Brexit as the cost of shipping goods is increasing by up to 300%. According to Mike Bowden, group marketing manager at logistics and shipping provider Cory Brothers, port congestion and supply chain costs had led in some instances to the price…

MSC has published a letter to its customer, stating that test procedures related to import reefer cargo has slowed down the operations in the port of Xingang, China. Below is the letter in full. "Dear Customer, The COVID test procedures related to import reefer cargo are slowing down the operations in…

European reefer rates are seeing upward pressure with some major lines announcing significant increases, for reefer cargo in particular, but also for standard freight containers too.

CMA CGM has unveiled the largest peak season surcharge (PSS) of US$600 per reefer box from North Europe, Baltic, Scandinavia and Poland to Middle East Gulf, Red Sea, India and Pakistan, effective from 1 December.

On the same date, Hapag-Lloyd will apply a PSS of US$200/reefer container from Spain, Italy and Morocco to Canada and the US on its Mediterranean Canada Service (MCA) service.

Additionally, the German carrier has also announced an increased ocean tariff rate for all cargoes in 20’ and 40’ standard containers on the east bound trade from Spain and Italy to East Asia.

Valid for sailings commencing on 1 December onwards and until further notice, Hapag-Lloyd’s rates from Spain and Italy to East Asia will be:

In the meantime, the French shipping group will implement another PSS on 3 December. This surcharge will apply for all cargo types (except out of gauge) from Italy to Central America East & West Coasts, Mexico West Coast, the Caribbean & Winwards (Puerto Rico & Cuba excluded) and will be €50 (US$60)/20' | €75 (US$90)/40'.

Beneficial cargo owners believe that there has been an erosion of trust between service provider and customer that has left shippers shocked and angered at the failure of lines to accommodate their customers during this period of the pandemic.

European Shippers’ Council (ESC) members believe that the European authorities should be concerned about the poor service provided by the carriers who are geared to earn profits without providing a service that is fit for purpose.

Shippers, truckers, and freight forwarders reeling from almost US$150 million in demurrage fees linked to congestion in the ports of Los Angeles/Long Beach and New York this year have threatened to take their complaints to US congress to bring an end to carrier abuses.

More than 40 shippers and trucking associations have teamed up to criticise carriers’ failure to respect an “interpretative rule” introduced by the Federal Maritime Commission (FMC) in May that sought to govern conflicts on the issue of demurrage and detention fees.

Members of the Harbor Trucking Association, the Agriculture Transportation Coalition, and the Pacific Coast Council of Freight Forwarders and Customs Brokers inundated the FMC at the start of the month with complaints about demurrage fees that have reached US$100 million in Los Angeles/Long Beach and US$50 million in New York already this year.

In the past three months, freight rates for container liners have continued to climb and warehouse shortages have become prevalent. Against the backdrop of a limited shipping capacity, in addition to skyrocketing shipping freights costs and difficulty in booking available containers, during the peak…

The Federal Maritime Commission (FMC) says it has received a number of allegations regarding the failure of container ship operators to pick up full cargo containers ready for export to China.

According to the FMC commissioner Carl Bentzel the regulator “is monitoring the situation,” with lines required to meet common carrier obligations. Under US law a common carrier must provide its services to anyone willing to pay its fees unless there are good grounds for refusal.

Under these legal obligations the rights of US shippers to export their cargo are enshrined in law, yet a number of allegations have surfaced where shippers believe that the carriers have ignored their responsibilities as common carriers in order to return empty boxes to Asia, taking advantage of the unprecedentedly high rates on the Pacific.

Consultant Jon Monroe, who also works for Worldwide Logistics, said last week, “Exports are hurting with carriers like Hapag Lloyd suspending export agricultural bookings as they move to reposition as many empties as possible back to Asia. As we enter the second week of November, we find that bookings are backed up until the first week of December.”

An extra shipment of mangos needs to be sent quickly. A Scandinavian client suddenly wants another entire load of flowers and plants. Or a pallet of garlic has to be flown to the Netherlands. "No problem at all for us," says Rick van t'Hag of the Dutch company, Cargorilla Logistics. "As a forwarding…

For the longest time, exotic fruit grown in the Philippines could not be shipped even to its capital, Manila, because it quickly becomes overripe. For fruits like lanzones and marang there is now a solution which preserves these to reach faraway markets. Even as far away as the US. The new technology to…

Ship operators in the container shipping sector have a five-year window in which to develop their integrated systems that will allow them to compete with the online freight forwarders and the likes of Amazon, said a former Maersk Line chief information officer.

Speaking exclusively to Container News Adam Banks said that the container shipping sector now has the technology to develop its online systems that will allow them to meet the challenge from the online companies that have evolved over the last 10 years.

According to Banks the three elements that will allow the type of integration necessary for the carriers are the development of reliable sensors that have a battery life of six to 12 months with the global connectivity that will allow the carriers to gain a competitive advantage.

“Being an asset owner gives the carriers a potential advantage over competitors, in the past that wasn’t the case, but now technology has caught up and that makes joined up integrated systems operating in real time a possibility,” explained Banks.

Essentially, as the lines own the assets on which the cargo is transported, the ships, ports/terminals, and trucks and trains to a lesser extent, they will be able to offer services that non-vessel operating companies will not be capable of.

Reefer containers filled with fruit arrive by ship at Cool Port I in Waalhaven, Rotterdam. The pallets are removed, and in future, the reefers will be loaded with frozen French fries. The pallets will then immediately be sent back by barge to the Maasvlakte. By the beginning of 2020, these fries should…

Hapag-Lloyd has announced several new Asia charges, which will take effect in the last two months of the year.

The German carrier will apply general rate increases (GRI) from various regions of Asia to Australia on 1 December for all dry, reefer, non-operating reefer, tank, flat rack and open-top containers.

Waymo and Daimler, the parent company of Mercedes-Benz, announced that they are forming a “broad, global, strategic partnership” to deploy fully driverless trucks. Daimler will integrate Waymo’s autonomous driving technology, widely considered to be among the best in the world, into its fleet of heavy-duty Freightliner Cascadia semi-trailer trucks.

Both Waymo and Daimler were independently working on self-driving trucks until coming together to form this partnership. Waymo had purchased a small fleet of Peterbilt trucks, which it has retrofitted with autonomous driving sensors and software. It currently is testing those trucks in Arizona, New Mexico, and Texas.

Recent industrial action has caused a massive backlog of empty containers in Sydney and to a lesser extent in other capital city ports in Australia, according to Shipping Australia Limited (SAL).

Ocean shipping companies lose money and revenue-earning opportunities if empty boxes are uselessly hanging about in the country and SAL said in its announcement that one way to tackle the backlog is the use of “sweeper” vessels, boxships to pick up and take away empty boxes.

But the ongoing container disruption in Sydney due to industrial action has resulted in availability issues on additional berth slots, which shipping companies need to bring in the sweeper ships.

As shipping lines have increased freight rates by 50 – 60% since March for almost all trade lanes out of India, they are now being accused of forming a cartel by shippers. An added problem is the a major container shortage has been evident across the country, especially when multiple boxes are required…

Asia rates have increased again, as some of the largest container shipping companies have announced new charges in the region.

In the first instance, Hapag-Lloyd has published higher prices in East Asia from next month. The German carrier will implement the following ocean tariff rates for all cargoes for 20’ and 40’ general purpose containers, including high cube boxes, on the eastbound trade from Turkey to East Asia, effective from 1 November.

Standard Container

On the same date, the line will apply a general rate increase (GRI) of US$600 per box from East Asia to South America East Coast and a GRI of US$200 per 40' from Middle East, which includes Arabian Gulf, India and Saudi Arabia, to Ghana.

In

Pickup charges for container users are becoming more expensive across Chinese ports due to increasing container imbalances, according to the latest Container xChange report.

European and the US importers currently struggle to return empty containers to Asia, according to Container Availability Index data. As a result, these ports suffer from increasing dwell times and port congestion.

On the other hand, carriers in Chinese ports are setting new regulations to control the imbalances. The German container line Hapag-Lloyd, for example, will now only release empty containers from its mainland China depots for a maximum of eight days prior to the arrival of the sailing.

Average pickup charges for container users

Stretch Average of PU Charge (in US$) Antwerp - Mundra 56.5 Shanghai - Tacoma, WA 61.4 Port Kelang - Karachi 82.25 Port Kelang - Nhava Sheva 91.08 Qingdao - Moscow 241 Shanghai - Moscow 243 Shanghai - Duisburg 617 Shanghai - Waersaw 735 Shanghai – Gothenburg 739.5

For this table, Container xChange looked at the most used stretches on its platform in the last four years. The company noticed that the average price to pickup equipment varies between different locations and container types. On average, container users pay US$256 to pick up containers on the platform (if pickup charge > 0).

The slowdown in manufacturing and export orders worldwide has resulted in a moderate container trade growth in 2019. The Covid-19 pandemic further impacted global demand in 2020. Ship Technology lists the ten biggest shipping companies based on their total twenty-foot equivalent unit (TEU) capacity in…

Carrier Transicold has reaffirmed its commitment to reducing emissions, improving sustainability and increasing efficiency across the refrigerated transport sector with the launch of the first fully autonomous, all-electric engineless refrigerated trailer system, the Vector® eCool™. Carrier Transicold is…

Einride recently revealed its revamped autonomous delivery truck, which is more aerodynamic than the previous version. To give a glimpse of the Pod in action, the Einride team put the AV through its paces on the Top Gear track in Surrey, England.It’s...

Amazon’s fleet of delivery trucks is finally getting a little greener. This morning, the e-commerce titan revealed its first custom electric delivery vehicle: A big, surprisingly cutesy van built in partnership with electric transport startup Rivian....

U.S. Customs and Border Protection officers assigned to the Nogales Port of Entry in Arizona seized 800 pounds of methamphetamine and fentanyl being smuggling into the United States from Mexico. This sets a new record for the Nogales Port of Entry.

The Giumarra Companies announced a joint project with Mountain View, Calif.-based startup Reliable Robotics Corporation to test shipments of produce utilizing autonomous aircraft technology developed by the latter company. The test flight program, created to help address supply chain and delivery…

Maersk Line and Hapag-Lloyd have announced rate increases out of Asia to a number of destinations in North America and Africa.

In the first instance, the carrier will apply higher rates from Pakistan, United Arab Emirates (UAE) and the Indian Subcontinent to North America, effective from 1 November.

Origins Destinations Cargo Type 20DC / 40DC 40High /40HREEF / 45HDry Effective date Pakistan, UAE and Indian sub-continent United States and Canada DRY/REEF US$400 US$400 1 November

Hapag-Lloyd has also announced a new general rate increase (GRI) on the eastbound Pacific trades from East Asia to all US and Canadian destinations. The new GRI will apply for all dry, reefer, non-operating reefer, tank, flat rack and open-top containers and will take effect from 1 November.

East Asia to North America (USA and Canada)

US$960 per all 20' container types US$1,200 per all 40' container types

In addition, the German carrier will implement increased rates for all cargo types from Middle East, which includes Arabian Gulf, India and Saudi Arabia, to West Africa, from 10 October, as follows:

US$500 per 20‘

Last but not least, as of 5 October, the Hamburg-based firm has pushed up its rates for all cargo from the Indian Subcontinent (except for Nhava Sheva and Mundra) to East Africa as follows:

US$100 per 20‘

The Giumarra Cos., Los Angeles, is testing deliveries of fruit by planes without pilots and has had its first successful flight.

Tim Riley, president of Giumarra Cos., called the program “groundbreaking” and will transform the future of the industry.

Giumarra is working with start-up Robotics Corp., Mountain View, Calif., using technology developed by the company. Giumarra is pursuing the program “to help address supply chain and delivery challenges within the fresh produce industry,” according to a news release.

The company’s first flight, a 200-mile trip from Reedley Municipal Airport to Whiteman Airport, Los Angeles, was Aug. 7.

“This test proved that the technology is viable and will evolve the way we bring products to market by enabling us to deliver fresher, riper fruit anywhere in the country, including remote food deserts, at speeds never before seen,” Riley said in the release.

The automated Cessna 172 Skyhawk included a pilot and engineer on board “for safety assurance,” according to the release. Reliable Robotics’ first fully autonomous flight was last year. It has also successfully landed the larger Cessna 208 Caravan and is in the process of certifying it for the program as “an ideal for air shipments of produce,” according to the release.

Hapag-Lloyd has announced several fresh prices in Australia, which will take effect from October and November.

First of all, the German carrier will apply new General Rate Increases (GRI) from North East Asia, South East Asia, Middle East and Indian Subcontinent to Australia as of 1 November for all dry, reefer, non-operating reefer, tank, flat rack and open-top containers as follows:

North East Asia to Australia

US$300/20’ all equipment types US$600/40’ all equipment types

North East Asia comprises Korea, China, China/Hong Kong, China/Macau and China/Taiwan.

South East Asia to Australia

US$150/20’ all equipment types US$300/40’ all equipment types

South East Asia comprises Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Middle East and Indian Subcontinent to Australia

US$150/20’ all equipment types US$300/40’ all equipment types

Middle East comprises United Arab Emirates, Bahrain, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and Yemen and Indian Subcontinent comprises Bangladesh, India, Pakistan and Sri Lanka.

In addition, the Hamburg-based shipping company has revised its booking cancellation and booking amendment fees for all applicable export shipments from Australia as follows:

Booking Amendment Fee - AUD 50 (US$36) / container Booking Cancellation Fee - AUD 100 (US$72) / container

In Ireland, Gardaí have seized 50 kilos worth of cocaine -with an estimated street value of €3.5 million- following a major surveillance operation. The truck driver, believed to be from the south-east of the country, was being questioned last weekend at a north Dublin garda station. The drugs haul was…

U.S. Customs and Border Protection, Office of Field Operations (OFO) at the Pharr International Bridge cargo facility discovered $960,500 worth of alleged cocaine concealed within a commercial shipment of produce arriving from Mexico. “Our top priority is to keep our country and the people that live in…

U.S. Customs and Border Protection, Office of Field Operations at the Pharr International Bridge cargo facility thwarted a smuggling attempt of alleged cocaine and methamphetamine worth $4 million in a commercial shipment of fresh produce arriving from Mexico. 

“Tenacity is the key in keeping dangerous drugs from crossing our borders,” said Port Director Carlos Rodriguez, Port of Hidalgo/Pharr/Anzalduas. CBP officers are committed to upholding CBP’s ongoing border security mission, serving as the guardians of our country’s borders.”

On Sep. 22, 2020, a 28-year-old truck driver, a Mexican citizen arrived from Mexico at the Pharr-Reynosa International Bridge cargo facility driving a tractor/trailer that contained a commercial shipment of produce. A CBP officer referred the conveyance for a secondary examination and after utilizing all available tools and resources, including a canine team, officers discovered packages of suspected narcotics hidden within the trailer floor. CBP OFO removed and seized 200 packages weighing 250 pounds of alleged cocaine and 61 packages weighing 105.82 pounds of alleged methamphetamine.

CBP OFO seized all the narcotics and the tractor/trailer and arrested the driver. Agents with Homeland Security Investigations took custody of the men while they continue with the investigations.