Freight Forward: Rerouting Cargo and Freight

Welcome to Freight Forward, where each Monday, I’ll recap what happened in supply chains the previous week through JOC.com articles and additional sources and also what to expect for the week ahead.

I’m Cathy Roberson, a supply chain writer and researcher. For this weekly series, I serve as a research analyst for the Journal of Commerce (JOC), for whom I identify trends, provide thoughts and input into stories, and assist with express and parcel last-mile queries.

Baltimore Port

On March 26, the container ship Dali struck one of the piers of the Francis Scott Key Bridge causing it to collapse and blocking ships from entering and leaving the Baltimore port. The JOC team continues to monitor the situation and will report updates and analysis.

• No timeline for Baltimore port reopening following bridge collapse, Michael Angell
• Trucking squeezed, but not crushed, by Baltimore port closure, Bill Cassidy
• Northeast ports prepare for Baltimore-bound freight as shippers scramble, Michael Angell
• Baltimore port closure presents unexpected challenges for mid-Atlantic trucking, Bill Cassidy
• Chassis providers say they’re ready for Baltimore port diversions, Ari Ashe
• Flatbed spot rates from Baltimore rising after port closure, Bill Cassidy
• East Coast ports expand hours to handle Baltimore diversions. Michael Angell
• Ro/ro shipping adjusts to Baltimore port disruption, Keith Wallis

Ocean Freight

• Greg Knowler writes that the need to reroute ships around southern Africa to avoid the Red Sea is driving up emissions this year and placing increasing pressure on shipping’s midterm emissions goals required to meet the International Maritime Organization’s (IMO’s) target of at or near net-zero by 2050 according to AlixPartners’s 2024 Container Shipping Outlook report.
• Michael Angell writes that ONE and Yang Ming outlined THE Alliance’s trans-Pacific network plans for 2025, noting current 2024 ocean contracts will overlap with the February 2025 planned start of the new trans-Pac network. ONE Chief Executive Jeremey Nixon said ?“The core products will include sufficient sea speed buffers and are designed so that the impact of Hapag’s departure in 2025 will have a minimal impact on ONE’s network and customers over the post-[Chinese New Year] disengagement period.”?

• The price of carbon credits on European markets has fallen since Jan. 1 when the emission trading system (ETS) was applied to shipping, prompting carriers to cut some of the surcharges that will be levied on customers through Q2. Other surcharges are increasing, however. The carbon price tracker from Ember assessed the price of carbon credits, known as European Union Allowances (EUAs), at €$70 ($65) per ton on March 25, down from €86 ($93) on Jan. 1 writes Greg Knowler.
• Bill Mongelluzzo writes that the Port of Vancouver has been struggling with rail container backlogs caused primarily by a surge in imports, and it will take at least several more weeks to clear the congestion, according to port and rail executives. At the same time, CN and CPKC are engaged in labor contract negotiations with the Teamsters union.

Chart of the Week

3PL

• Maersk opened a new distribution center in Tijuana that seeks to tap into growing demand for shipments that move from Asia to the US via Mexico on a duty-free basis. The Tijuana facility is tapping two major growth trends: rising US imports from Mexico as production shifts from China and exploding de minimis volumes, largely driven by e-commerce writes Mark Szakonyi.
• Only nine of the Journal of Commerce’s Top 40 3PLs grew revenue in 2023, as clear a sign as any that demand and rate levels came crashing back to Earth last year writes Eric Johnson. The top 5 3PLS (compiled by SJ Consulting) are: Amazon, DHL, Kuehne + Nagel, DSV Panalipina, DB Schenker.

Columns

“I believe that what CMA does is the better solution,” Otto Schacht told TPM24. “Time will tell whether the Maersk solution works because customers still separate contract logistics, overland, sea freight and air freight tenders.”?

• Maersk integrator strategy under growing scrutiny amid DB Schenker interest, Peter Tirschwell
• OSRA 2.0 bill targets China, leaves shipping antitrust exemption untouched, Mark Szakonyi

Inland

• Bill Cassidy writes that US District Judge Julie A. Robinson ruled that Yellow did not exhaust the grievance procedures in its National Master Freight Agreement (NMFA) with the Teamsters. “The court is guided by the language of the NMFA,” Robinson said in her ruling.

That’s it for now. Please be sure to hit the subscribe button to receive the latest updates.

For readers interested in reading more Journal of Commerce stories, click here to subscribe. Enter code FFNL20 at checkout to receive a 20% discount on any subscription option. (Note that this is only for first-time subscribers or for upgrading a current subscription). What did I miss? Have a question? Let me know in the comments. I’ll be checking back throughout the week to answer questions, address comments, and share additional insights. In the meantime, here’s wishing everyone a good freight week ahead.

-Cathy

(YRC photo credit: Photo 92993694 ? Dakotastudios | Dreamstime.com)