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MOVING FORWARD: GLOBAL TRADE’S TOP FREIGHT FORWARDERS OF 2021

freight

MOVING FORWARD: GLOBAL TRADE’S TOP FREIGHT FORWARDERS OF 2021

Established in 1980 to meet the needs of a newly deregulated domestic transportation market, Armstrong & Associates provides unparalleled third-party logistics market research. With offices smack dab in Middle America (Milwaukee and Madison, Wisconsin, to be precise) and a newsletter that is emailed to more than 88,000 subscribers globally, A&A, as the hep cats call it, churns out market estimates found in media accounts, trade publications (like you-know-who) and securities filings by publicly traded 3PLs,

One thing consumers of A&A’s research gobble up every year is the Top 25 Global Freight Forwarders List. The 2021 version (see accompanying chart) includes rankings based on 2020 gross revenue and freight forwarding volume.

Once again, DHL, Kuehne + Nagel, DB Schenker, DSV Panalpina, Sinotrans, Expeditors and Nippon Express take the power positions, but there are also new entrants: Apex Logistics International and CTS International Logistics.

Wherever your company falls (or does not fall) on the list, it is important to consider that we are (fingers crossed) coming out of unprecedented times in the ocean freight shipping game. A shipping container shortage led to a massive spike in freight rates. Of course, during the height of the pandemic, production and trade halted, leaving ocean carriers in limbo—and many are still trying to regain their sea legs. 

Yes, the busiest trade routes are humming again. The Long Beach/Los Angeles port complex experienced a 23% spike in volume in December 2020 compared to the previous year and, despite the pandemic, the second busiest December in their history. On the opposite coast, the ports of Charleston, South Carolina, and Savannah, Georgia, also dealt with massive influxes in traffic.

Ports that did not share in that success can at least take solace in knowing congestion has created fresh headaches for the industry leaders. Maersk and MSC have pulled certain carriers from their regular rotations in the short term. Timing shipments, so products can navigate through offshore parking lots and reach store shelves in time for the holidays, has become the sweet science. 

Meanwhile, many shippers say they’re operating at losses to meet their global customers’ demands. Keep in mind this is at a time when investing much more into that magic bullet known as digitization is all the rage. The aforementioned Maersk is using technology to streamline freight booking, particularly spot booking. CMA CGM, Yang Ming Marine and Hapag-Lloyd also introduced freight booking tools. And artificial intelligence (AI) is growing as a major force in global shipping.

Here comes another headache: The reliance on tech increases the risks of cyberattacks. Since 2017, nearly half of the top 10 freight carriers worldwide were victims of digital security breaches, including a $300 million loss from Maersk due to a ransomware cyberattack.

While noble, sustainability efforts create another money-sucker for ports and logistics companies. The freight shipping industry represents approximately 2.2% of all global greenhouse gas emissions, which expected to rise by 50% by 2050 if action isn’t taken. Carriers are doing their part by switching to more environmentally friendly fuels, such as liquified natural gas (LNG). Around 13% of new vessels ordered this year are LNG fueled, because a clean planet = priceless.

ARMSTRONG & ASSOCIATES
2021 TOP 25 GLOBAL FREIGHT FORWARDERS LIST

2021 Rank*

Service Provider

Gross Revenue 
(US$ Millions)**

Ocean 
(TEUs)

2020 Rank

1 DHL Supply Chain & Global Forwarding 28,453 2,862,000 1
1 Kuehne + Nagel 25,787 4,529,000 1
2 DB Schenker 20,761 2,052,000 2
2 DSV Panalpina 18,269 2,204,902 3
3 Sinotrans 12,174 3,750,000 4
4 Expeditors 10,116 1,091,380 5
5 Nippon Express 19,347 660,152 6
6 CEVA Logistics*** 7,416 1,081,100*** 7
7 C.H. Robinson 15,490 1,200,000 9
8 Kerry Logistics 6,867 1,019,924 10
8 UPS Supply Chain Solutions 11,048 620,000 8
9 GEODIS 9,135 866,631 12
10 Bolloré Logistics 5,265 761,000 11
11 Hellman Worldwide Logistics 2,972 905,100 12
12 Kintetsu World Express 5,750 640,063 13
13 Agility 4,018 771,000 14
14 Yusen Logistics 4,248 764,000 14
15 CTS International Logistics 2,160 1,021,007 Not listed
16 Hitachi Transport System 6,346 662,000 16
17 DACHSER*** 6,591 492,440 15
18 Toll Group 7,260 523,300 18
19 Maersk Logistics (DAMCO) 6,369 401,369 17
20 Apex Logistics International 2,274 190,000 Not Listed
21 Logwin 1,292 698,000 19
22 Mainfreight 2,467 347,638 21

 

* Ranking also factors in a forwarder’s air cargo shipments by metric tons.

** Revenues and volumes are company reported or Armstrong & Associates, Inc. estimates. Revenues have been converted to US$ using the average annual exchange rate in order to make non-currency related growth comparisons. Freight forwarders are ranked using a combined overall average based on their individual rankings for gross revenue, ocean TEUs and air metric tons.

*** Includes LCL shipments.

BREAKBULK

INTERNATIONAL ATTRACTION: COMPANIES AROUND THE WORLD FLOCK TO U.S. PORTS OFFERING BREAKBULK AND HEAVY-LIFT SERVICES

For the marine industry, “onward and upward” may be a fitting idiom. Even with the COVID-19 pandemic a constant, port congestion a problem, a scarcity of ship capacity and a shortage of terminal workers and truck drivers, just to mention a few issues, cargo keeps moving and ports and terminals keep doing their best to meet the daily challenges and plan for the future.

Hans Bean, chief commercial officer for North Carolina Ports, touched on the impact of supply chain issues in the breakbulk sector.

“Much has been written about the major supply chain disruption caused by the container carriers,” he notes. “This has driven shippers, where possible, to shift more of their supply chain to breakbulk. North Carolina Ports has seen import and export shippers increase the share of their ocean freight to breakbulk over the last six months.”

Bean says this global switch to more breakbulk “has driven up breakbulk ocean rates as well as warehouse utilization. The challenges on the U.S. East Coast lie primarily with warehouse capacity.”

He explained that, “In recent months, many U.S. East Coast ports have reached warehouse capacity limits and either had to turn vessels away or force extremely long wait times.” 

Though warehouse capacity is approaching 100% utilization, North Carolina Ports “has not overstepped its capacity limits due to its flexibility with its two-port solution,” Bean says in references to the ports of Wilmington and Morehead City. “Moreover, North Carolina Ports has land to grow and is looking to invest alone and with partners so to add capacity.”

North Carolina Ports’ two deep-water terminals at Wilmington and Morehead City have a long tradition of handling bulk and breakbulk cargoes. Over the past six years, Bean’s port authority has spent more than $200 million upgrading its container and non-container facilities at both locations.

“In the past two years, new dimension lumber breakbulk services have taken advantage of these improvements in both ports with Ultrabulk, G2 Ocean, Saga Welco and Spliethoff all activating new breakbulk services,” Bean said.

“At the Port of Wilmington, the diverse and multi-purpose terminal allows shippers that utilize both container and breakbulk modes of transportation to pivot between containers and breakbulk,” said Bean. “The ability to provide cross-over solutions has become a major advantage as pulp and paper products, grain, steel and even cold chain shippers seek additional capacity and re-evaluate their supply chains.” 

He also noted that on one terminal, Scoular, a major exporter of grain, feed and food ingredients, is completing a new grain transload facility that is scheduled to be operational by mid-November.

The Port of Morehead City, dedicated to bulk and breakbulk, recently received a new Liebherr LPS 420 crane, including new buckets/hopper equipment. 

Southern exposure

After a drop in cargo volume in fiscal year 2020/21, things are looking up at the Port of Beaumont, with an eye on growing volumes and moving forward on infrastructure projects at the Texas facility.

“2021 has been the year of focusing on infrastructure improvements to increase capacity at the Port of Beaumont,” said Sade Chick, the port’s director of Corporate Affairs. “As of Q3 of 2021, industrial projects have started to pick back up, which has had a positive impact on breakbulk volumes.”

Sade said the port recently issued more than $400 million in revenue bonds to Jefferson Energy Companies, the port’s private partner and operator of the Orange County Liquid Bulk Terminal, which will go toward infrastructure improvements, including construction of a third dock at the facility. An uptick in liquid bulk cargo volumes is anticipated in 2022. 

As well, the port commissioners approved a $217 million capital improvement program, comprised of 20 projects for 2021-2022. 

“The port is especially excited about this program because three of our largest projects will be out to bid by early 2022,” Chick said in reference to the Main Street Terminal 1 dock reconstruction project ($85.2 million), Grain Dock rehabilitation project ($25 million) and construction of a new rail interchange track ($12.3 million).

Also, of the 20 projects, 10 will directly impact breakbulk handling. The hard-surfacing of lots 5 and 13, the Lot 14 paving project, South End Infrastructure improvements and the Harbor Island Drive resurfacing project will result in an additional 30 acres of hard-surfaced laydown area for breakbulk cargoes.

Harbor Island Drive is the main road used to move cargo in and out of the port. The road will be resurfaced to expedite the process of moving large project components, like wind blades. 

Chick said that, “Upon completion of Main Street Terminal 1, the port will have an additional 1,150-foot-long dock used for general cargo handling. This will provide the port with an additional berth that will primarily be used for military equipment, wind turbine components and forest products.”

With a glimpse to the future, Chick said, “We anticipate growth in project cargo, specifically wind turbine components and refinery components. The driver for growth in wind energy is the Biden administration’s approved plans for the construction of the first, large-scale U.S. offshore wind farm.” 

The petrochemical industry is cyclical and historically, a downturn is followed by fairly rapid recovery, which comes in the form of projects starting back up, increasing the amount of project cargo moving through the Port of Beaumont. 

Milwaukee brewing

Although breakbulk has been down about 8% so far this year at Port Milwaukee located on Lake Michigan, Port Director Adam Tindall-Schlicht is optimistic some major projects will increase volumes.

Port Milwaukee handles a wide variety of breakbulk and non-containerized cargo, including steel (coils, plate, and long products), wind turbine components (towers, nacelles, blades, generators), brewery tanks, mining equipment, yachts, forest products, transformers, farm and construction machinery, manufacturing equipment, bagged materials and other project cargoes.

But one project, in particular, that holds great promise for the port is the construction of new headquarters and manufacturing plant by Komatsu Mining Corp, which produces heavy equipment. The project, in the Milwaukee Harbor District, has a price tag of $285 million. 

“The Komatsu project is directly related to opportunities for breakbulk,” said Tindall-Schlicht. “Komatsu has historically leveraged the Milwaukee port when it is exporting its mining equipment and large breakbulk pieces. Now that their new headquarters and manufacturing facilities are directly adjacent to us in the Harbor District, we really anticipate increased activity with Komatsu.”

Port Milwaukee has also been getting activity from the Ascent project under construction downtown. The 25-story apartment tower is the world’s largest timber structure “and we are within their supply chain so those pieces (timber) are being imported into North America from Austria, and the port is providing just-in-time delivery services,” Tindall-Schlicht said.

The port has put an emphasis on capital improvement this year and is in the process of developing the DeLong Terminal, which is an $85-million agriculture export terminal. It is expected to be operational in April 2023.

As has been the situation globally, the COVID-19 pandemic has impacted Milwaukee’s trade patterns.

Although 2020 was the port’s best year in seven years with an overall commercial volume increase of 5%, Tindall-Schlicht pointed out that, “The supply chain and worldwide logistics issues that we have seen this year as a result of COVID are starting to impact the port. Our breakbulk trade is down about 8% so far this season.” 

It just goes to show that challenging issues in the marine industry are not confined to containerized cargo.

“We are seeing changes and impacts in dry bulk and breakbulk markets and really in all commodity areas that Port Milwaukee serves,” Tindall-Schlicht said.

While some of the decline can relate to supply chain and logistics issues, he said another “piece of this is many of the Trump era tariffs are still very much in play and causing some hardship here after years of being out there. We are still looking for some relaxation on some of those Trump era tariffs, and we hope the global trade community can come together and figure out a new paradigm as we go forward.”

Merrily, merrily Maryland

At the Port of Baltimore, “Big Red” is not just the name of a soda pop or chewing gum. It’s also the handle for a 167-foot long Manitowoc M250T crane at the port’s Dundalk Marine Terminal that can lift a staggering 200 metric tons. You’ll also find a Manitowoc GROVE GMK 7550 crane named ‘Yellow’ that can hoist 182 metric tons, as well as a heavy lift floating crane that can directly load heavy cargo from vessels to a barge, truck or railcar bed.

The terminal has direct rail access via CSX and is adjacent to the I-95 corridor and I-695 beltway. Indeed, the port boasts of having “the most cost-effective and efficient routing for the Mid-Atlantic region, the Midwest and beyond,” which explains why Baltimore ranks first among the nation’s ports for volume of autos and light trucks, ro-ro heavy farm and construction machinery and imported gypsum.

In the movement of vehicles, Baltimore has handled more autos and light trucks than any other U.S. port for 10 consecutive years, and the rebound from pandemic lows indicates continued strength in that category. In April, 34,672 autos and light trucks came across the port’s public docks, a tremendous 97% increase compared to the category’s pandemic low point in May 2020. In addition to new vehicles, the port also handles previously owned vehicles. In April, that category was also up 27% compared to the same month last year.

Public terminals at the port handled 85,405 tons of heavy machinery, up 73% compared to the category’s low point in June 2020 and a 30% increase compared to April of last year. Overall general cargo, with 937,439 tons, was up 28% compared to the category’s June 2020 low and up 7% year-over-year. 

K-Line, Nordana Line, NYK Bulkship, Höegh Autoliners, Grimaldi Lines, Westfal Larsen, Mitsui O.S.K. Lines, Atlantic Container Lines, Wallenius Wilhelmsen Logistics, Canada States Africa Line, and Atlantic Ro/Ro Carriers Bahri (the national shipping company of Saudi Arabia) are among the roll-on/roll-off breakbulk carriers that call on the port.

“Our cargo figures are bouncing back strong,” William Doyle, Maryland Department of Transportation Maryland Port Administration’s (MDOT MPA) executive director, says in a release. “Farming and construction are picking up once again, worldwide, and American-made equipment is being exported to global markets through the Port of Baltimore. We are also moving forward with rail and terminal infrastructure projects that will help generate thousands of jobs and grow our business for many years to come.”

Georgia peachy

Located about 18 miles inland on the Savannah River, the Port of Savannah has 16 private terminals that handle a variety of products, ranging from woodchips and liquid natural gas to paper goods and petroleum.

But the Georgia Ports Authority (GPA) also owns and operates Savannah’s Garden City Terminal and Ocean Terminal, with the latter primarily being a breakbulk facility with about 5,800 feet of contiguous dock space. Vehicles, heavy duty non-road equipment and other types of breakbulk cargo pass through Ocean Terminal.

In 2015, GPA implemented a new tracking system to more quickly process breakbulk cargo and provide real-time freight tracking for shippers moving cargo through the Port of Savannah. Then GPA Executive Director Curtis Foltz, who has since retired and been succeeded by Griff Lynch, said at the time, “The new system means faster service and better communication with our breakbulk customers.”

The Port of Brunswick is also a ro-ro, bulk and breakbulk facility that handled more than 685,000 units of vehicles and heavy machinery is fiscal year 2021 and contributed to the GPA seeing an 18% rise in total ro-ro volume compared to the previous year.

Port officials said the facilities saw a fast recovery from the global economic downturn of 2020.

To keep up with this unprecedented growth, GPA has accelerated its hiring efforts, bringing on nearly 150 new employees since January 2021. Many of these employees are being trained in jockey trucks, yard cranes and other equipment to handle growth at GPA’s facilities.

technology

TECHNOLOGY LEADS TO MEET MODERN CHALLENGES: PART III

For part three of our tech-focused featureGlobal Trade identified industry players who confronted challenges with the help of technological partners. Our case studies are arranged by the categories Global Trade covers on the regular, including ocean carriers, ports, trucking, and warehousing. Read part one here and part two here.

OCEAN CARRIERS

Company: Atlantic Container Lines of Westfield, New Jersey

Challenge: Enhancing operations and market share for refrigerated shipments

Problem Solver: Carrier Transicold of Palm Beach Gardens, Florida

Solution: PrimeLINE refrigeration units

In an attempt to gain new operational advantages and efficiencies for its refrigerated shipping operations, Atlantic Container Line (ACL) began acquiring 150 new containers equipped with Carrier Transicold PrimeLINE refrigeration units in May. The cube-shaped, 40-foot-high containers, which help preserve and protect food, medicine and vaccine supplies, have been put into service on trade routes between the U.S. and western Europe.

“With its energy-efficient performance, the PrimeLINE refrigeration unit is a perfect complement for our fleet, which includes some of the world’s largest, most fuel-efficient and environmentally responsible roll-on/roll-off containerships,” says Maurizio Di Paolo, Corporate Liner Equipment Department manager, with the Naples, Italy-based Grimaldi Group that includes ACL in its portfolio.

Carrier’s Lynx Fleet digital platform monitors the cold-chain containers, although Di Paolo says that “is only the beginning” when it comes to providing benefits to the shipping line. “We are especially looking forward to the advantages that come with refrigeration unit health analytics and the subsequent efficiencies for our maintenance and repair operations,” he said at the containers’ roll out.

Lynx Fleet includes integrated telematics and a cloud-based architecture to ensure information is always up to date; a data management platform that provides enhanced visibility on the health and status of a fleet’s refrigerated containers, reducing operational costs and maintenance & repair expenses related to conducting new off-line pre-trip inspections; as well as platform accessibility from anywhere via smartphone, tablet or computer, through an interactive user-friendly, digital dashboard. The ACL units will also utilize Carrier’s Micro-Link 5 controller, the first and only one in the industry with wireless communication capability, providing greater memory, processing power and connectivity compared to standard controllers.

“We are pleased to support ACL’s modern fleet with our latest container refrigeration technology, which is designed to improve fleet efficiencies and help control operating costs,” says Kay Henze, Carrier’s account manager.

The deal with ACL was sealed a month after Carrier announced that SeaCube Containers LLC of Woodcliff Lake, New Jersey, became the first intermodal equipment leasing company to incorporate Lynx Fleet into its fleet, with an initial deployment of 2,000 PrimeLINE units. 

“This is an exciting step forward for SeaCube as we move toward realizing our vision of telematics as a standard within our reefer fleet,” SeaCube CEO Bob Sappio mentioned at the time. “We are confident that the Lynx Fleet offerings will help drive improvements in our own operating metrics and resonate with our customers to help them achieve optimal reefer performance and act on data-driven insights.” 

PORTS

Entity: Port of Los Angeles, California

Challenge: Advancing the port’s ambitious Clean Air Action Plan  

Problem Solvers: Toyota Motor North America of Plano, Texas; Kenworth Truck Co. of Kirkland, Washington; Shell Oil Products US of Houston, Texas, and multiple stakeholders 

Solution: Hydrogen fuel cell electric freight vehicles and stations

North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $259 billion in trade during 2020 and remained open with all terminals operational throughout the COVID-19 pandemic. The port currently has 18 projects under way aimed at achieving clear air, clean water and sustainability.

Under an $82.5 million Shore-to-Store project, the port has teamed up with Shell, Toyota, Kenworth Truck Co. and several other public and private-sector partners for a 12-month demonstration of zero-emissions Class 8 trucks. The project—which rolls into a larger-scale, multiyear demonstration that is designed to advance the port’s Clean Air Action Plan goals—is designed to assess the operational and technical feasibility of the vehicles in a heavy-duty setting.

Kenworth designed and built the trucks that rely on a fuel cell electric system designed and built by Toyota. Of course, these vehicles need places to refuel, so Shell designed, built and will operate two new high-capacity hydrogen fueling stations in Wilmington, which is 7 miles from the port, and Ontario, which is 60 miles inland. The vehicles’ duty cycles will consist of local pickup and delivery and drayage near the port and short regional haul applications in the Inland Empire. 

“Transporting goods between our port and the Inland Empire is the first leg of this next journey toward a zero-emissions future,” said Port of L.A. Executive Director Gene Seroka during a demonstration in June. “This project is a model for developing and commercializing the next generation of clean trucks and cargo-handling equipment for the region and beyond. Just as the air we breathe extends beyond the port’s footprint, so should the clean air and economic benefits we believe this project will yield.”

Further expansion of the project will include five more hydrogen-fueled heavy-duty trucks, two battery-electric yard tractors and two battery-electric forklifts, whose feasibility under the rigorous demands of the Southern California market will be studied by the partnershipThey will also measure the reduction of nitrogen oxide, particulate matter, greenhouse gas emissions and other pollutants.

“Shell believes hydrogen offers a promising solution to achieving net-zero emissions both in terms of immediate improvements of local air quality as well as meeting long-term climate goals, especially for heavy-duty vehicles and for long-distance travel,” says Paul Bogers, Shell’s vice president, Hydrogen. “That’s why we are working with truck manufacturers, fleets, governments and others to coordinate hydrogen infrastructure investments in high-traffic freight areas like the Port of Los Angeles, Port of Long Beach, the Los Angeles basin and the Inland Empire.”

TRUCKING

Company: Paramount Transportation Logistics Services of Fort Myers, Florida

Challenge: Accelerate their digital freight management initiative

Problem Solver: Trucker Tools of Reston, Virginia

Solution: Smart Capacity real-time load tracking technology

Paramount Transportation Logistics Services (PTLS), which is part of the R+L Global Logistics family of companies, provides comprehensive logistics and transportation management services, including warehousing, distribution, asset-based truckload and LTL services in North America as well as freight forwarding globally. Having embarked on a strategic technology initiative to enhance broker efficiency, improve carrier engagement and expand the provision of real-time shipment information for customers, Paramount performed a detailed examination of companies to consider as a platform partner. Trucker Tools won the pony.

“Trucker Tools checks three principal capability boxes for us,” explains Mark Funk, Paramount’s director of Capacity Procurement. “The first is automated, real-time, GPS-based location tracking, which gives us reliable shipment updates every 15 minutes. Second is predictive freight matching, which automates finding available trucks, and makes it easier for truckers to book with us. By digitizing this process, we also cut the time and cost to cover a load by over 50 percent, increasing the number of loads our team can secure.” 

Trucker Tools’ multi-functional, multi-party mobile driver app and its wide adoption among the truckload community also factored into Paramount’s decision, Funk added. “Carriers are our customers, too,” he noted. “Importantly, we can leverage a common mobile app, familiar to thousands of independent truckload operators and small fleets, to access a much deeper pool of capacity and improve how we do business with them.”  

The Trucker Tools mobile app, which is available for both Android- and Apple-powered smartphones, is provided free of charge to independent truckers and small fleets with 10 or fewer vehicles, which together account for 90 percent of truckload market carriers, according to the company.

“We are excited to welcome Paramount to our growing community of over 300 brokers and 3PLs adopting Trucker Tools as their strategic partner for digital freight management,” says Prasad Gollapalli, founder and chief executive of Trucker Tools. “We truly see ourselves as an integral partner in our customers’ continuous journey to leverage emerging technology, improve how they engage with carriers and provide ever more sophisticated and valuable services to their customers.”

WAREHOUSING

Company: GEODIS of Levallois-Perret, France

Challenge: Improving job safety, comfort and the pool of potential warehouse workers  

Problem Solver: Phantom Auto of Mountain View, California 

Solution: Remotely operated forklift

It takes a lot of thinking to be a multi-dimensional supply chain operations with a direct presence in 67 countries, a global network spanning 120 countries and business rankings of No. 1 in France,  No. 6 in Europe and No. 7 worldwide. And so, it was a thinker at GEODIS who came up the idea of operating warehouse forklifts remotely.

Think about it, the thinker, who is a GEODIS manager, thought: Such an operation would: (1) reduce injuries and increase overall safety in warehouses; (2) lower the number of people physically inside warehouses to enhance worker comfort; (3) create new future-proof remote operator jobs that can be carried out within an office environment; (4) allow the hiring of individuals who may have physical disabilities restricting their use of traditional forklifts, as well as individuals from other historically underrepresented demographics; and (5) allow for recruitment from regions outside of where warehouses are located, including areas of higher unemployment.

Call that a win-win—with a win-win-win on top!

To make this happen, the GEODIS thinker took his idea to a GEODIS think tank that concluded . . . We need help. La première étape (“step one;” finally, my seventh-grade French class pays off) was to find a worthy forklift maker. Deuxième étape (step two; oui-oui!) was to locate the technological know-how to make the contraption work remotely.

For the forklift, GEODIS did not have to look far. Germany’s Linde Material Handling GmbH, a KION Group company that manufactures forklift trucks and warehouse trucks globally, has a French subsidiary called Fenwick-Linde. But for the tech, GEODIS had to look west—waaaaaay west to the U.S. West Coast, where one finds Silicon Valley and Phantom Auto.

The Fenwick forklift combined with Phantom’s secure, network-agnostic and interoperable remote operation software now enables remote workers to “drive” the vehicle, unlocking efficiency and equipment utilization gains. For example, one remote worker can operate multiple forklifts at a number of warehouses at different times of the day, all from one secure, central location. Keep in mind that giant GEODIS has warehouses all over the world.

“Phantom Auto’s technology enables dynamic balancing of workforce allocation, safer warehouses, enhanced worker well-being, and employment opportunities to those who otherwise could not physically drive forklifts,” says Stéphanie Hervé, GEODIS’ chief operating officer, Western Europe, Middle East & Africa. “This innovation will be of benefit to the wider community and indicates the future of logistics operations. We believe that technology should serve people, and that is what this partnership with Phantom Auto illustrates.”

We began this story with market research, so let us conclude with StartUs Insights’ recent report that was based on an analysis of nearly 800 startup businesses and identified a number of Industry 4.0 technological trends. The top 10 are:

artificial intelligence, 16 percent; human augmentation and enhanced reality, 13 percent; edge, fog and cloud computing, 11 percent; network and connectivity, 11 percent; advanced robotics, 10 percent; Internet of Everything, 10 percent; big data and analytics, 9 percent; 3D printing, 8 percent; security, transparency and privacy, 7 percent; and digital twin, 5 percent.

Considering that report for The International Air Cargo Association, TIACA Director General Glyn Hughes noted that each trend StartUs Insights identified affects his members. While an email he recently sent to members is strictly tailored to his industry, his words actually apply to all the companies and problem-solvers cited in this article and beyond.  

“We have all moved on and technology has been leading the way forward and will continue to do so,” Hughes writes. “Future success will be determined by those who identify, embrace and capitalize on new opportunities.

“In that regard, the air cargo industry will also need to embrace these new opportunities. Many of these are already heavily influencing air cargo operational efficiency and a number of new solutions and industry best practices have resulted. When it comes to innovation, digitalization and technological implementation . . . it is very true to say that standing still is actually moving backwards.”

carrier

A ROUNDUP OF RECENT MERGERS AND ACQUISITIONS THAT ARE SHAPING AND DEFINING THE CARRIER INDUSTRY

There is no denying that the past 18 months have been a tumultuous period for the global maritime industry. 

According to the United Nations Conference on Trade and Development (UNCTAD), sea-based trade plunged by 4.1% in 2020 due to the unprecedented disruption caused by COVID-19. 

The pandemic has sent shockwaves through supply chains, shipping networks and ports, leading to plummeting cargo volumes and foiling growth prospects, not helped by the enormous uncertainty that accompanies the world’s efforts to emerge out of the pandemic. 

Despite the gloom, UNCTAD expects maritime trade growth to return to positive territory and expand by 4.8% in 2021, assuming world economic output recovers. However, the organization highlights the need for the maritime transport industry to brace for change and be well prepared for a transformed post-COVID-19 world.

Looking at the commercial and strategic activities of major shipping lines is often a good sign of the health of the industry more widely. 

As we progress through 2021, mergers and acquisitions are giving mixed signals, and clearly paint a picture of fluctuating fortunes. 

Damco and Diamond S Shipping dissolve 

In September 2020, industry leaders Maersk announced that it would be integrating Damco’s air and ocean less-than-container-load shipping into its wider business, thus dissolving the brand it merged with Maersk Line at the beginning of 2019. 

The move was part of series of strategic plays by CEO Soren Skou that are geared toward a central goal of becoming an integrated logistics company that provides end-to-end solutions for its customers. 

Shipping commentators regard the Damco internalization as a blurring of the lines between forwarders and carriers. 

For forwarders, alarm bells could start ringing as Maersk now provides direct competition to these companies. DB Schenker reacted quickly to the announcement, offering a so-called stability package to Damco customers that matched the previous terms they were operating under. 

It has created a fascinating dynamic, as many forwarders rely on Maersk as a supplier of carrier services. 

And Damco has not been the only casualty of the Danish company’s reshuffling. Maersk has also spun off lines that include its once-formidable oil drilling business, instead focusing its efforts on acquiring businesses that fit into its core purpose. This includes those specializing in customs and warehousing, as well as numerous digital tools. 

Another well-known brand that has fallen away is America’s Diamond S Shipping, which in March announced it was merging with New York-based International Seaways, the latter keeping its brand as part of the all-stock transaction deal. 

Post-merger, International Seaways will own a fleet of 100 tankers that between them have a capacity of 11.3 million deadweight tons, assets which give it an implied market capitalization of around $1 billion. The fleet split will be approximately 70-30 between crude tankers and product tankers respectively.

Diamond S Shipping went public after it merged with Capital Product Partners in early 2019, this after failing with an IPO attempt five years earlier.

Speaking at the time of the latest merger announcement, Nadim Qureshi, chairman of the Board of Directors of Diamond S Shipping, commented: “We are pleased to enter into a transaction that will both create near-term value for our shareholders and create a superior, scale vehicle that enables investors to gain exposure in both the crude and product tanker markets with strong fundamentals. Importantly, since the focus of the management teams of both Diamond S and INSW are similar, we see further value from synergies in the combined company.”

The combined company will be home to 2,200 employees and carry a market value of around $2 billion. 

K-Alliance and Hapag-Lloyd show brighter prospects 

In South Korea, a huge code-sharing agreement in the form of the K-Alliance looks set to strengthen a series of shipping firms’ competitiveness in Southeast Asia. 

The move sees several enterprises joining forces–HMM, SM Line, Pan Ocean and the recently merged Sinokor Merchant Marine and Heung-A Line–with the intention of reducing operating costs and increasing quality of services.

It is thought that the alliance represents around 40% of South Korea’s container volumes in the region, which stands at approximately 480,000 TEUs. It is hoped that this consortium will help to stave off international competition that is threatening to take a greater market share. 

K-Alliance is the brainchild of South Korea’s Ministry of Oceans and Fisheries, which oversaw the signing of the agreement via video conferencing toward the end of 2020. As an extra incentive, it is offering alliance members preferential interest rates for new vessel orders. 

On announcing the move, the ministry hinted that more activity could be in store. 

“It’s the first attempt to form a service alliance consisting of only South Korean carriers to reap economies of scale,” read the announcement. “Other operators are welcome to join in at any time, in consultation with existing member companies.”

Korea’s shipping industry, having hit rock bottom, is starting to show signs of a rebound, the K-Alliance being another indication that the sector is on its way to a substantive recovery. 

The activity of German firm Hapag-Lloyd also sheds some light on the general direction of travel for the global shipping industry. In announcing the acquisition of NileDutch in March 2021, it has signaled its intent to expand its operations in the booming African market. 

With over 40 years of expertise, NileDutch is one the most prominent providers of container services from and to West Africa. The company is present in 85 locations across the world and has 16 offices spread across the Netherlands, Belgium, France, Singapore, China, Angola, Congo and Cameroon. 

With 10 liner services, around 35,000 TEUs of transport capacity and a container fleet of around 80,000 TEU, the company connects Europe, Asia and Latin America with West and South Africa. 

Rolf Habben Jansen, CEO of Hapag-Lloyd, outlined the firm’s faith in the African market when news broke of the NileDutch transaction.

“Africa is an important strategic growth market for Hapag-Lloyd,” Jansen said. “The acquisition of NileDutch strengthens our position in West Africa and will be an excellent addition to our existing activities on the continent. Our combined customer base will benefit from a denser network from and to Africa as well as from a much higher frequency of sailings.”

Indeed, as the world begins to emerge from its cocoon and vaccination programs extend their reach, it will be with great interest to observe where the dust settles in relation to the makeup of the global ocean carrier industry. 

Some big names have disappeared while others have strengthened–a new status quo that has revealed key trends which could shape the sector moving forward.

Whether it is the move by giants such as Maersk to combine forwarding and carrier services, or the clear vote of confidence shown by Hapag-Lloyd in the African market, the dice are starting to be rolled after the standstill period brought about by COVID-19. 

port of virginia

PORT OF VIRGINIA ENHANCES GLOBAL CONNECTIVITY—FOR ST. LOUIS

As the fifth busiest container port in the U.S., the Port of Virginia obviously provides a financial boost for Virginians—but also Missourians as well.

You see, the Port of Virginia is one of the St. Louis region’s primary gateways to the world. Dedicated rail service provided by two Class I railroads–Norfolk Southern and CSX–connect the St. Louis region to the East Coast port, where more than $900 million has been invested within the past three years. 

That investment has doubled the Port of Virginia’s capacity and increased efficiencies for getting freight on and off both rail and ocean carriers. That translates into time and cost savings for importers and exporters in the St. Louis region who utilize the Port of Virginia and its ocean carrier services for global connectivity. 

“We have 30 weekly services with our ocean carrier customers, and that gives shippers in the St. Louis community or any of our inland connections a lot of options,” explains Aaron Katrancha, director of Breakbulk, Ro-Ro & Rail Sales for the Port of Virginia. “You can get basically anywhere in the world from the Port of Virginia—Asia, Africa, Caribbean, Central America, Europe, India, subcontinent, Middle East, Mediterranean, South America, you name it. We have those global connections to offer the St Louis market.” 

Katrancha likens the rail connections between the intermodal yards of the St. Louis region and the Port of Virginia to commercial airline service.  “Our rail services run on a very concrete schedule that our customers can set their watches to,” he boasts.  

Bi-State Development, which operates the St. Louis Regional Freightway, has taken the lead in ensuring local shippers are aware of the scheduled rail services and the benefits they offer, Katrancha explained in a talk at May’s FreightWeekSTL 2021 with Mary Lamie, executive vice president of Multi Modal Enterprises at Bi-State Development.

“Everything that Aaron has shared today,” Lamie said, “reinforces the global significance of the Port of Virginia and opportunities for growth between our two regions.” 

port management

LAMAR’S PORT MANAGEMENT PROGRAM ENHANCES CAREERS AND BUILDS KNOWLEDGE

Lamar University’s new Center for Port Management prepares today’s port and terminal management professionals for tomorrow’s industry challenges and opportunities. The center’s flagship offering is the fully online Master of Science degree in Port and Terminal Management. The 12-course program blends theory and practice through course content and delivery, taught in equal measure by industry experts sourced globally, and faculty from Lamar’s Business College and Industrial Engineering Department.

“Throughout my 40-year career, the port industry has sought an advanced degree in port management that would recognize the exceptional nature of this critical profession, as well as advancing its practice,” says Erik Stromberg, the center’s first executive director. “As an industry veteran, my focus is on the application of knowledge to the practice of port management.

“Historically, port managers prepared for their significant responsibilities through on-the-job training and continuing education as offered by trade organizations, such as AAPA,” says Stromberg in reference to the American Association of Port Authorities, which he ran for 10 years. “The required set of skills and knowledge could take years to develop, but even then, it would typically address the manager’s functional focus and not the broad spectrum of port authority roles and responsibilities.

“Our port master’s degree program spans the many interdisciplinary skill sets a senior port leader needs to understand and apply. Management skills training in leadership, team building and decision-making are included in the curriculum. The curriculum also addresses one of the most important port management responsibilities, which is to balance the public and private sector roles a port authority must play.”

Stromberg continues, “Importantly, one of the very important if less obvious roles our port industry veterans play in delivering course content is to convey the normative value of port management. Port authorities operate as a public enterprise, requiring management acumen and business-like efficiency in the delivery of public goods—jobs, economic development and waterborne commerce. There is a tangible aspect of port management that prides itself on generating public benefits, as well as achieving commercial success that engenders a strident dedication to the craft.”

The center’s program also provides continuing education to Texas and West Gulf ports and terminal managers, primarily through the SE Texas Waterways Advisory Council’s Education, Research and Workforce Development Committee. Two very successful programs—“Women in Transportation Management—Ports and Terminals” and the annual “Hurricane Planning” workshop/webinar—recently concluded.

The third aspect of the center’s activities lies in sponsoring industry-relevant research. Most of the supported projects have successfully facilitated safer and more efficient waterborne transportation and waterway utilization. These projects, along with information about the center’s education and training programs, can be found at lamar.edu/portmanagement.

market

HONG KONG DRIVES TO CAPTURE THE COLD-CHAIN MARKET

In Hong Kong, where many U.S. businesses send shipments to and receive goods from, a new drive to maximize cold chain opportunities is being realized and embraced.

By leveraging Hong Kong’s unique location to support fruit businesses tapping into the growing mainland Chinese market, fresh produce worth more than US$3 billion is arriving at Hong Kong Seaport Alliance (HKSPA) terminals annually.

Through the deployment of more than 7,800 reefer points, twice the capacity of other terminals in southern China, HKSPA expedites every container of fruit through its facilities to enable the freshest delivery to market. 

American companies shipping fresh fruit produce to the region should bear Hong Kong’s port facilities in mind, especially given Chinese demand for fruit imports is predicted to grow by 55 percent come 2025.

Further adding to Hong Kong’s appeal, HKSPA claims consignees can collect shipments immediately after discharge and be on their way within 15 minutes. Simple, convenient, and fast customs procedures mean Shenzhen is an hour away, while one of the world’s largest fruit-consuming epicenters, Guangzhou’s Jiangnan Wholesale Fruit and Vegetable Market, is just four hours by road.

shipping costs

Why Do Global Shipping Costs Continue to Skyrocket?

Global shipping costs are reaching rarely seen levels, putting strain on logistics teams and product purchasers alike. Here’s a closer look at some of the reasons for this phenomenon.

Worsening Container Delays Create Bidding Wars

Port backups were among the issues of the early days of the COVID-19 pandemic. Unfortunately, they persist now, limiting the number of containers each port can efficiently accommodate. Relatedly, the shipping customers outpace the available space in each container. That problem makes prices rise so high that some entities lose out because they cannot afford to pay them.

Port Backups Cause Headaches

Some port backups are so severe that ships arrive unable to dock. That’s an ongoing situation at Washington State ports in Tacoma and Seattle. U.S. Coast Guard representatives helped redirect some vessels as they waited days or weeks to unload. Some ended up in unusual locations, such as off the Puget Sound. The offloading delays also cause a container shortage that affects new freight.

HMM, South Korea’s top national container carrier, recently reported severe vessel berthing congestion at most of its port calls, as well as related yard and gate issues. Other providers reported similar disruptions. However, the affected parties disagree about what’s to blame. The carriers often assert that ports are not sufficiently well-managed, which causes the delays. But port managers respond that carriers have not met their berthing window requirements.

Bids Can Reach the Tens of Thousands of Dollars

In any case, these slowdowns have made it exceptionally challenging to keep goods moving. Desperation makes some parties engage in bidding wars.

Philip Damas, head of the supply chain advisors practice at Drewry, a maritime research consultancy, explained, “Everyone is spending much longer on round trips. Containers are sitting on the water for much longer periods of time, containers are waiting at ports for much longer. Productivity in container shipping is deteriorating. Every failure is effectively creating ripple effects. It’s a vicious cycle.”

He continued by clarifying that freight indexes that track the changes in shipping costs usually gather the associated spot booking prices that get offered about a week before a ship departs. However, some ocean carriers offer available slots in shorter timeframes once the vessels are already at terminals. By then, there are plenty of customers eager to get goods on board at the last minute.

“Now everything is overbooked,” Damas said. “Shippers are desperate to book tomorrow. It’s more a bidding war than it is a traditional tariff, and this bidding war is accelerating. Some of these $23,000, $24,000 prices include the inland distribution cost, and that can easily add far more to the final cost.”

A combination of factors means many shippers decide there’s no choice but to pay those high prices. One longstanding issue is that carriers have cut capacity on major routes. Plus, the container shortage caused by backups escalates the problem. Shippers often realize they have to pay higher prices or leave the overseas markets.

Increased Demand From Customers Exacerbates the Issue

Company leaders usually appreciate when their products are in high demand, but the matter becomes more complicated when shipping costs are so high. In such cases, it’s necessary to either invest massive amounts of money to alleviate the shipping struggles or face lengthy delays that could upset customers.

For example, Amazon manages its own logistics system with extraordinary efficiency. However, that decision means building huge distribution centers as close as possible to the people who place orders. The company even began purchasing jets in early 2021 to exert more control over its air shipping options. However, most other brands don’t have such gigantic resources. Plus, the strategy may not pay off forever.

In the second quarter of 2020, Amazon showed a 68% increase in money spent on shipping. The e-commerce giant has yet to raise shipping costs for consumers, but other brands have already taken that approach. The rise in global shipping costs could even cause long-term stock shortages.

A Luggage Brand Goes to Great Lengths to Receive Goods

In one case, a global luggage company usually receives 11 container deliveries annually by August. That scheduling gets the goods to the merchant in time for the holidays. But, this year, it has only received three of the 11 so far, and not without significant expense.

The company normally pays $2,500 per 40-foot container. But representatives got an offer from an entity promising to get the container onto a ship in Thailand for $15,000. However, people at the company had to first get the goods to the vessel from Myanmar — a challenge in itself due to a trucking shortage affecting Asia. The brand eventually secured the necessary trucking assistance for $3,000.

In the end, the brand paid $18,000 to have its goods shipped. This example shows how much the global shipping crisis can quickly eat into profits. Another downside is that the container’s goods had a $30,000 value, so sending them cost more than half that amount.

The company reported that consumer demand was up, which is usually a positive thing. It’s probably in large part because of how people are starting to travel for pleasure more with the air travel industry beginning to recover and offer more routes.

Fewer Overall Affordable and Available Transport Options

A lack of choices to move goods also contributes to soaring global shipping costs. Some parties may get their products shipped by train and air when possible, but capacity limits exist there, too. The rush to get goods shipped causes a crunch that requires scrambling for any available slots offered via any kind of transit. Plus, air shipments are much costlier than those sent by sea, with some estimates saying that method is at least five times more expensive.

Severe weather can wreak havoc, too. In July 2021, a typhoon hit China and closed the country’s air, sea, and rail hubs. Earlier in the year, snowstorms forced some rail freight operators to temporarily cease running some routes. These challenges mean some customers decide they must cope with the tremendous shipping costs because there aren’t many other viable options.

Some brands are also trying to cope with delays within the supply chain by making up time at other points. One way to do that is with drones. Supermarket chain Tesco carried out a trial where some customers in Ireland received grocery orders only 200 seconds after the goods departed the store property.

In another instance, DHL partnered with a cargo drone company. The agreement involves using and managing several thousand drones to give customers same-day deliveries. Drone deliveries are not yet widespread options. However, they could become more popular, particularly as shipping professionals look for feasible ways to cut costs while keeping customers happy.

No Short-Term Price Easing

Analysts believe the global shipping costs will not return to more manageable levels during 2021. There are certainly not any quick fixes to the problem. Thus, the parties affected by it must decide on the most appropriate ways to deal with it, even if that means accepting astronomical prices or restructuring supply chains to avoid long-distance shipments as much as possible.

_____________________________________________________________

Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry.

Yantian

Yantian Port Congestion: How Can Shippers Navigate Another Major Supply Chain Disruption?

While the global logistics industry has not been a stranger to disruption this past year, the congestion at the Port of Yantian in China is starting to impact the market at an exceptionally high level. At the current pace, it’s going to be even more disruptive than the Suez Canal blockage this spring and the ongoing congestion at the Port of Long Beach/LA over the past year. This is due to the magnitude of the trade lanes and exports the port touches. Unlike the Suez Canal incident or other recent port issues, which have impacted a more limited number of regions and trade lanes, the Port of Yantian is a major export hub for multiple large markets like Europe, North America, Latin America and Oceania.

This disruption also came on top of an already brittle logistics system which is currently grappling with several unprecedented challenges, including equipment shortages and decreased schedule reliability, to name a few. Right now, the reliability that the vessel carrying your goods or expected to pick up your goods will show up on time is roughly 5%. At this time last year, it was around 80%+. And, as ocean carriers introduce more blank sailings or skip ports to start improving the reliability percentage, that means the freight that was skipped is now added to the backlog of containers that will flow into the next vessel.

It’s likely we won’t see a large shift in congestion until the demand levels out.  And while this market does not lend itself to a silver-bullet solution, there are things shippers can do to keep their supply chain afloat:

1. Be open to hyper flexibility

While flexibility is important any time global logistics are involved, the phrase ‘now more than ever’ holds true here. Currently, delays at the Port of Yantian are ranging from 10-15 days, which is a large jump from the 2-7 day delays we experienced just few weeks back.

Switching between ports, modes, and trade lanes has been an active strategy to avoid these delays, but shippers can’t rely on only adjusting once or twice since other shippers are also making these shifts as they compete for limited space. A good example of how this plays out is in the case of congestion at the Port of Oakland. Over the last few months, as the delays at the LA port were mounting, carriers started diverting sailings to Oakland. The result? Oakland is now also severely congested and suffering from the same unpredictability.

Fact remains, ocean carriers are deploying the most capacity on the U.S. west coast (USWC) routing, and as complexities in the interior of the U.S. continue to be exacerbated (i.e. lack of chassis and rail congestions), carriers continue to limit options for containers moving inland. Shippers need to continue to be flexible in enabling containers terminating on the USWC and leveraging transloading and trucking inland options.

When considering flexibility across modes, keep in mind air may be the solution for a few shipments, but it’s not a feasible option to shift all your ocean freight to air. Instead, exploring a mix of modes, like LCL + air, may offer a more realistic opportunity for your company in a more cost-competitive way. Having the right partner with a global suite of service and technology offerings coupled with scale and a strong inland network, is going to make the difference for supply chains in the market.

2. Prepare for ultra-prioritization

Prepare to make tough decisions on what freight is most important to move. This can be especially difficult for companies importing seasonal items, like patio furniture or pools since their selling window is limited.

With today’s demand, most shippers would classify all their freight as a top priority but shipping it all at once may not be realistic. It’s important to sit down and have those conversations now so when the opportunity presents itself for portions of your freight to move, like in an LCL shipment, you’re ready to make the call.

3. Don’t dismiss historical data

I’ve been in the business 20 years and never seen anything like this in a global magnitude, impacting almost all core trades. However, a unique situation does not mean historical data no longer lends itself to helping us find solutions.

The market will improve, and things will get better. However, these issues tend to be cyclical as we look at the data. We need to build resiliency around supply chain and continue to have options to navigate. While some of these events are hard to predict and plan, there are things that you can do, such as diversifying distribution center locations, sourcing, etc.

Final Thoughts

Until the high demand subsides, the above points will be crucial moving forward. C.H. Robinson has always been focused on working alongside our customers to help them succeed – and that’s no less true during times of incomparable volatility. It’s important to keep an open line of communication and to be open to creative solutions. As we work through this together, I encourage you to keep tabs on our data-driven market insights page and reach out to your representative.

containers

CONTAINER PRICES SURGE IN EUROPE AS CARRIERS FAVOR LOADING EMPTIES

For European exporters looking to source shipping containers, existing shortages could deteriorate significantly in the coming weeks, according to the latest data from Container xChangethe world’s leading online platform for the leasing and trading of shipping containers.

Most pricing and availability indicators now suggest carriers are continuing to favor shipping empties back to Asia as fast as possible to maximize yields on front-haul services rather than wait for less lucrative backhaul loads.

The upshot for shippers is rapidly rising prices in Europe for containers even though CAx availability readings point to higher availability of boxes in European hubs – Container xChange figures do not track empty moves.

“The confluence of theoretical high availability and soaring prices for boxes strongly indicates that container lines are prioritizing empty containers over export cargo from Europe,” said Dr Johannes Schlingmeier.

“There were signs of this even before the Suez Canal closure in late March. The latest figures suggest the additional disruption this caused has exacerbated the situation and made it even harder for exporters to find empties.”

The latest container trading data reveals that between January and April average prices for used 20 ft. containers across Europe rose 57% from $1348 to $2119.

In April, price increases for 20 ft. containers were especially severe. In Antwerp, prices jumped by 30% compared to March. In Hamburg they rose by 16% over the same period while in Rotterdam they increased 12%.

Since the beginning of May, average prices for 20 ft. dry containers in Europe softened slightly to $2249 from $2110 in April. However, prices for 40 ft. dry containers have again increased this month, up 13% to $3112 from $2750 in April.

In Container xChange’s Container Availability Index (CAx) an index reading of below 0.5 means more containers leave a port compared to the number which enters. Above 0.5 means more containers are entering the port.

At the port of Genoa, the average CAx reading for a 20 ft. box in 2021 is 0.71, up from 0.26 through the first half of 2020. At Hamburg, in 2021 the average CAx reading has so far this year is 0.75, compared to 0.39 in 1H 2020, while at Rotterdam the reading is 0.71 so far this year, versus 0.46 a year earlier.

After a short dip in incoming containers to Europe due to the Suez Canal closure as measured by Container xChange’s Container Availability Index (CAx), inbound volumes are expected to increase again.

CAx readings for week 19 decreased by on average 4.5% to values of 0.85 across dry-container sizes in Hamburg, 0.79 in Rotterdam, and 83.5 in Antwerp, indicating an ongoing surplus of incoming boxes.

“According to Container xChange forecasts, an increase in incoming shipping containers by 4-5% over the next weeks is likely to not only increase CAx readings but also contribute to slowly decreasing container prices again,” said Dr Schlingmeier.

“These are good times for equipment owners across Europe as indications are that even if container prices dip slightly, scarcity will remain until carriers change tack and start looking for more backloads. As a result, container prices are likely to remain at elevated levels for some time, although we do think availability for exporters will improve in the coming months.”