The Federal Maritime Commission has launched a formal investigation into port demurrage, detention, and free time practices. As part of the investigation, terminal operators and ocean common carriers will be called on to submit relevant data and information. The investigation, launched last month, is in response to a petition filed by a coalition of shippers, associations and trucking organizations in January. The coalition claims some of these fees are unfair because certain circumstances mean their ability to retrieve their cargo and return equipment is out of their control.
Ocean Network Express The world’s newest shipping line officially began operations on April 1st, 2018. As new as it is, the members of which it’s made up are foreign to none in the shipping industry. The Ocean Network Express, or ONE, is a result of the merger of Japan’s formerly-three largest shipping lines, Nippon Yusen Kaisha (NYK), Mitsui OSK Lines (MOL), and Kawasaki Kisen Kaisha (K Line). The start of container shipping operations this month is in line with the initial schedule laid out when the company was officially established on July 7, 2017.
The importance of cargo insurance In under one month, the maritime shipping industry has seen three accidents. First, a major fire that broke out on the Maersk Honam in the Arabian Sea, which serves as a stark reminder of the perils shipping crews face out in the middle of the ocean. The Singapore-flagged vessel was on enroute from Singapore to Suez with 12,416TEUs on board when the fire erupted. At the time of writing, the fire, which had raged for five days, has been brought under control but four crew members have been reported dead from the blaze.
Following a wave of an unprecedented number liner consolidations over the past number of years, there have been indications that this trend is likely to persist in the shipping industry in 2018. However, whether this applies to liners or other players involved in the immense ocean freight industry is debatable. According to iContainers, the mergers and acquisition activities for shipping lines are likely to lose steam and slow down this year.
What’s causing the US trucking shortage problem? Even as autonomous trucking tests and trials advance, getting them fully implemented remains very much a thing of the future. Focusing on today, the current trucking situation as such appears to be heading backwards, with a nationwide shortage of truck drivers threatening to throw the entire country’s ocean freight services logistics chain into disarray. Truck driver shortage in itself is something we’ve been seeing in the US for decades so it isn’t exactly a new problem.
Top 5 shipping stories of 2017 To say 2017 has been an eventful year for the ocean freight industry would be an understatement. From new alliances, an over-active hurricane season in the Atlantic, and numerous cyber attacks, there was no short of contenders for the top shipping events that shaped the year. But with every chronicle, there are takeaways, lessons to be learned and mistakes to be avoided. So without further ado, here are the top 5 shipping stories of 2017 put together by the iContainers team.
Ocean freight carrier schedule reliability In the ocean freight industry, it’s always good advice to anticipate the unanticipated as the complex logistics industry isn’t short of its hiccups. That said, there are aspects of shipping that are simply beyond your control. This includes the carriers’ schedule reliability, which is what we’ll be addressing in this post. Just recently, SeaIntel named Hong Kong’s OOCL as the most reliable carrier, in terms of on-time arrival rate, for the third quarter of 2017.
The wrath of hurricanes on shipping and logistics For a few days early this September, the US Sunshine State saw neither sun nor shine, as Hurricane Irma bore through with a wrath that left even the most fervent of all storm chasers in awe. Cleanup operations began soon after. But this is something that’s expected to last a while – if not longer. On land, the cleanup is physical and emotional for some.
South Korean shipping lines join forces It’s been one year since the collapse of South Korea’s then-largest shipping liner, Hanjin Shipping. The country’s shipping industry is now taking a step forward and getting serious with reestablishing itself as a key player in the global container shipping industry. The remaining South Korean shipping lines, including current leaders HMM and newcomer SM Line, have come together to sign a memorandum of understanding to form the Korea Shipping Partnership.
Latest shipping merger: Cosco Shipping acquires OOCL In the seemingly endless story of mergers and acquisitions in the ocean freight industry, Cosco Shipping is set to acquire OOCL. The Chinese liner confirmed a $6.3 billion bid for its OOIL, OOCL’s parent company, last week. “We are proud of the business we have built and the people who have been building it. This decision has been carefully considered and we believe it helps ensure the future success of OOIL.