Tag Archives: ports

Ripples from Black Sea shipping crisis hitting regional supply chains

Posted on July 30, 2022 by | Leave a comment

It is interesting to hear about changes in regional supply chains. The Ukraine war provides a chance to see what disruption occurred and how it is impacting routes to move cargo in the area of the Black Sea. This article covers the effects of the blockade of Ukranian ports.

Naturally costs have changed, and so have equipment imbalances.

Finally, the markets for freight into and out of the area have changed a lot. Many shippers and carriers have been actively looking for alternatives, and have needed to create some new ones.

And sanctions imposed by the EU and US have forced other changes.

By Daniil Melnychenko data analyst at Informall BG 26/07/2022

Ripples from Black Sea shipping crisis hitting regional supply chains – The Loadstar

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US container prices tumble as yards overflow with empties

Posted on April 20, 2022 by | 1 comment

Suddenly there is a glut of empty containers. And prices for empty containers have fallen, in some cases by almost 50%. That’s because the containers are jammed up and not going back to China, due to Chinese COVID shutdowns and the Ukraine crisis.

Now the cost of a container in the US is below what it costs to buy a new one in China. I’m afraid it isn’t low enough for ocean carriers to be motivated to spend a voyage on relocating them. I think they will continue to build up in the US.

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Gary Howard | Apr 19, 2022

US container prices tumble as yards overflow with empties

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US regulator probing China’s role in container shortage

Posted on March 2, 2022 by | 1 comment

The FMC is looking into Chinese control of containers and equipment to move them. Most containers and chassis are produced in China. So says Carl Bentzel, an FMC commissioner.

China certainly has a large stake in production of both containers and chassis. There are three state-owned firms in China that dominate container production. Even with elevated prices recently, it is still about the same cost to buy a new container in China for the voyage to the US, or to recycle one from the West Coast of the US. Even if you would rather recycle an empty container, the ocean shipping firms can affect that balance by refusing to pick empties up at say Long Beach or Los Angeles, or delay their transit by long enough to cause headaches for those who need them by a certain date.

If empty containers build up in the US, tying up chassis as well, that’s a form of industrial pollution. Having to spend large sums for storage yards rather than getting them back to China is an environmental cost that should not have to be borne by US local governments and citizens.

It’s certainly worth an investigation and perhaps some action by the US government.

John Gallagher, Washington Correspondent Thursday, May 6, 2021

US regulator probing China’s role in container shortage – FreightWaves
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Posted in Logistics, Ports, Shipping, Supply Chains, Sustainability

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