Major steamship lines and express couriers suspended Russia service in recent days in response to the war in Ukraine. Maersk, MSC and CMA CGM announced March 1 they are suspending bookings to and from all Russian ports, following Hapag Lloyd’s similar announcement Feb. 24 and Ocean Network Express’ partial suspension Feb. 28. UPS confirmed a total stop in service March 1, and FedEx on Feb. 28 stopped inbound service to Russia.
Global shipper Maersk says it is "monitoring and preparing to comply with the ever-evolving sanctions and restrictions imposed against Russia while we safeguard our operations and our people in consideration of the constant developing situation." The company said Feb. 28 it may suspend bookings, both on ocean and inland, to and from Russia. "For cargo already on the water we will do our utmost to deliver it to its intended destination," it said. "We have a sharp focus on safeguarding reefer containers and keeping cold chain operations as stable as possible, as the commodities include important goods such as groceries and pharmaceuticals. We are doing everything possible to prevent risk to the above cargo and in turn risk to the end-users in need of these commodities. It’s also worth noting that air space is also gradually being restricted and our air services will be impacted," the company said.
The Los Angeles and Long Beach ports again postponed a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced Feb. 18. The ports originally planned to begin imposing the fee Nov. 15 but have postponed it each week since. The latest extension delays the effective date until Feb. 25.
Global ocean freight rates will likely “remain elevated” for the remainder of 2022, and shippers should continue to expect a “volatile” market until at least the second half of the year, Crane Worldwide Logistics said in a February ocean market update. Crane said shippers also should carefully monitor the container port in Odessa, which Russia could block if it invades Ukraine, threatening roughly 1 million 20-foot equivalent units annually. The update also includes information on the current state of global ports and a market forecast for the remainder of the year.
Federal Maritime Commissioner Carl Bentzel says that audits have already led to investigations at the FMC, but that the agency is underpowered, with about 115 employees and just six investigators. He said there have been billions of dollars worth of detention and demurrage charges, and that the FMC will be issuing a notice of proposed rulemaking to create further guidance about proper detention and demurrage charges.
Panelists at a Washington International Trade Association conference Feb. 2 said they're not sure when the supply chain crisis will ease, noting the U.S. brought a record number of containers into the country last year. Jonathan Gold, the National Retail Federation's vice president for supply chains, said he expects the amount to be even higher in 2022.
The Port of Oakland is opening a 25-acre off-terminal container yard that will move containers off chassis so they can be picked up for export. The new container yard is aimed at helping agricultural exporters. Oakland is the gateway for refrigerated proteins and much of California's exports, and before the import surge, its volume was half exports and half imports, the port said in a Jan. 3 news release.
There has been “major improvement” in recent weeks to ease congestion across the Port of Los Angeles, “but there’s still so much work to do,” Executive Director Gene Seroka told a Washington Post webinar Dec. 9. The profound shortage of truckers and warehouse labor in Southern California remains a severe problem that won’t ease anytime soon, he said.
The International Longshore and Warehouse Union has rejected a proposal from the Pacific Maritime Association to extend its current labor contract, according to a Nov. 23 report from Bloomberg. That sets up potentially contentious negotiations between the labor union, which represents West Coast dockworkers, and terminal operators and carriers on the West Coast, amid existing supply chain challenges. The current contract, which had already been extended one year, expires mid-2022.
The White House, in a blog post that noted some wins for easing port congestion, said Congress should provide the Federal Maritime Commission with "an updated toolbox to protect exporters, importers, and consumers from unfair practices." It said that the Ocean Shipping Reform Act, a bipartisan bill introduced in the House in August (see 2108100011), "includes good first steps towards the type of longer-term reform to shipping laws that would strengthen America’s global competitiveness."