Point Global Logistics News of the Week 10.7.22
Carriers work to restore service after Hurricane Ian
Carriers are continuing their work to restore service after Hurricane Ian ripped through Florida last week, halting delivery and transportation operations.
The hurricane made landfall in Florida on Wednesday, devastating the southwest portion of the state and killing at least 101 people, CNN reported. As the state shifts into recovery mode, the Port of Jacksonville resumed normal operations Saturday and parcel carriers UPS, FedEx and the U.S. Postal Service have been gradually resuming service in parts of the state affected by the storm.
Port of New York moves ahead with new threshold for empty container fee on ocean carriers
The Port of New York and New Jersey is moving ahead with new shipping container requirements for ocean carriers and fees for violations. The container late fee, which was originally to be implemented on Sept. 1, was delayed to allow for talks with ocean carriers about their concerns.
“The ocean carriers were not opposed to paying another fee, it was the process and mechanism we chose,” said Bethann Rooney, director for the Port of New York and New Jersey. “The one size fits all mentality would not work for every carrier.”
Rising costs push up breakeven bar for shipping lines as demand slumps
As mainhaul voyage results decline significantly and more ships are taken out of service due to the collapse in demand, ocean carriers may be obliged to downgrade their outlook for the year.
The speed of the demand slump has blindsided carriers confident of the integrity of contracted volumes, but booking forecasts are down sharply as consumers prioritize higher housing and energy costs, leaving retail inventories overstocked.
And according to Lars Jensen, CEO of Vespucci Maritime, the rapid unwinding of port congestion is resulting in “a continued release of capacity”, which “combined with weak demand is fuelling the market downturn”.
Source: The Loadstar