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Aperture and Focus- Dec 21

Aperture & Focus – December 21, 2022

Global Aperture

In two weeks, a set of new measures will be enforced by the International Maritime Organization (IMO), requiring all ships to calculate their Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) rating. Maritime carrier alliances THE and OCEAN plan to phase-in new container vessels with capacities upward of 20,000 TEUs, replacing smaller box ships on some of their most in-demand service loops.

The ongoing energy crisis in Europe is reportedly cinching the region’s textile production, while their US counterparts laud newly announced nine-month tariff exclusions for 352 commodities including raw material inputs. Nearshoring talks in North America prompt concerns of combatting organized crime in the region—government leaders will convene in January for further discussion and collaboration.

 


 

Regional Focus

Americas

The Container Dwell Fee levied in 2021 by LA-Long Beach Ports will be officially put to rest on January 24—though the fee was never implemented, port management have reported a combined 92% reduction in long-term container backlogs since the program’s debut. Savannah’s breakbulk operations will be forwarded to New Brunswick as the latter receives $16 million in federal support and the former stumbles over lower-than-expected November volumes versus 2021.

A major storm is expected to hit the US Midwest through the coming weekend, potentially affecting passenger and cargo operations from Denver to Memphis. Arizona comes under fire for welding a border wall of over 800 cargo containers across Cochise County. This move may hinder cross-border trade with Mexico, which saw major increase in automotive exports throughout November.

 


 

Asia-Pacific

China’s easement of pandemic controls amid recent protests have resulted in more outbreaks throughout the country. Domestic pharmaceutical brands in China have implemented 24-hour production cycles to replenish retail inventories of OTC drugs and home remedies. More air capacity a la China Southern is scheduled to premiere through the start of January, bridging several provinces to Cambodia, Kazakhstan, Malaysia, Netherlands, Singapore, and Turkey.

Consumer electronics leaders are resettling into India and Vietnam as the US announces more blacklisted companies based in China; ocean carriers have responded with new intra-Asia services connecting South China ports to Singapore, Philippines, Thailand, Malaysia, and Indonesia.

 


 

Europe, Middle East & Africa

To optimize maritime and inland shipping, Rotterdam will allow mixed berthing in mid-January—that is, vessels carrying hazardous materials will be allowed to berth near vessels carrying non-hazardous goods. Intended to speed up cargo handling, the move may serve little purpose: dockworkers of Rotterdam’s Delta II terminal are engaging in go-slow operations as a form of labor action. Some carriers have suspended calls to the port, discharging containers instead at Antwerp or Zeebrugge. Several vessels laden with oversize cargoes are scheduled to berth the ports of Stockholm through the end of 2022.

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