Ocean Fast Facts
Since most of the United States is baking in the summer heat, July's Ocean Fast Facts would like to cool it down with some containerized statistics from north of the USA border. Increasingly over the past 5 years, ocean cargo from Asia destined for the central USA into markets such as Minneapolis and Chicago rely on cargo routed via the west coast Canadian ports of Vancouver and the increasingly popular Port of Prince Rupert. Occasionally, these ports offer a faster, less congested and more economical choice into the North Central intermodal areas of the USA.
This month's Fast Fact is in the form of a question:
How many TEUs were handled through the Port of Vancouver during 2007?
Market Notes
Summer Update! Trans Pacific Peak Season Surcharges - PSS Delayed!
As of July 1, Peak Season will not have "hit" Trans Pacific ocean imports. Ocean carriers had initially proposed the start of Peak Season Surcharges (PSS) for June 1 this year. At the time of this writing, most carriers have chosen to delay the start of PSS until July 15. Vessels remain near capacity but the spike in inbound volumes remains manageable. An anticipated "spike" in shipments is expected to occur before July 15; therefore, it does remain important to plan ahead for shipments exiting Asia. AIT customers who anticipate shipments during peak season should forecast as accurately possible and allow up to 10 days to pre-book at origin to ensure container equipment availability.
Currently, the proposed PSS levels are $320/20' $400/40' and $450/40hc, but may vary by carrier. More information will follow in upcoming eNewsletters or AIT customer instant alerts.
REMINDER! China and the forthcoming Olympics:
Routing your Cargo around the Games
AIT would like to remind our customers that August 8, 2008 is the start of the Olympic Games to be held in Beijing and surrounding areas through August 24. During the month of July, ocean carriers and local government bodies alike will restrict the movement of cargo in ports and cities near Olympic venues into October. Olympic venues extend as far south from Beijing into Hong Kong; therefore, it is important to plan accordingly. Large cities such as Shanghai will also be impacted.
Additionally, shippers of hazardous cargo will be restricted altogether and cargo will either need to be re-routed or held for shipping until after restrictions are lifted. For ideas on potential routing alternatives, please contact your AIT representative.
Midwest Flooding! Delays expected
Due to the recent heavy rains in the upper Midwestern USA, rail links between the United States west coast and the Midwest have been severely impacted. Both the Union Pacific Railroad (UP) and the Burlington Northern Santa Fe Railroad (BNSF) report significant delays of 72 hours.
As of the time of writing, some lines in the area of the Mississippi River linking key cities such as Chicago and St. Louis to the west coast have been completely flooded and the railroads have closed lines in these locations. Flood waters are gradually receding and delays should be reduced in the coming days of early July, considering there are no significant rain storm forecasts in the upper Midwest during that time.
Update! Ocean Export Container and Vessel Space Availability
Ocean container availability and vessel space remains limited, especially in inland locations such as Chicago, Houston, Minneapolis, St. Louis, Denver and Dallas. Additionally, export vessels are full. In order to help ensure container availability and vessel space for your export bookings, it is recommended you allow 7 to 10 days to help secure space for your export bookings, especially for multiple container shipments. Last minute bookings are very difficult to secure with the ocean lines, but if you plan accordingly your chances of loading on earlier vessels improves significantly. Additionally, booking ocean shipments with an LCL service rather than FCL might allow for earlier shipment options. As always, check with your local AIT office to discuss routing alternatives.
CN Railroad Initiates "green fee" for cargo transiting
through British Columbia - Carbon Tax Surcharge
The Canadian National Railroad (CN) has announced that as a result of a new Green House Gas emissions tax in the province of British Columbia, a new surcharge has been implemented and is effective August 1, 2008, for cargo transiting through British Columbia via rail.  Any ocean freight moving via the port of Vancouver on intermodal rail services to destinations within the United States and Canada on the CN Rail will be impacted. The surcharge has been announced as follows:
Effective August 1, 2008:
$7.80 per railcar
$3.90 per container
Note: 1 railcar = 2 containers
ILWU and PMA Contract Deadline - July 1
As of press-time, contract negotiations between the ILWU, representing the longshoremen at 29 United States west coast ports, and the PMA (Pacific Maritime Association), representing the ocean freight carriers, have remained positive.
As of June 17, tentative agreements were reached regarding healthcare coverage for ILWU employees. Hopes remain high, and all signs indicate that a strike will be averted at West Coast ports in the USA when the current labor contract expires on July 1, 2008. The Pacific Maritime Association website referenced an article from the Wall Street Journal dated June 20 cited both sides were cautiously optimistic.
Container Freight Station (CFS)
A carrier-designated facility at which export LCL (less than container load) cargo is received from consignors for consolidation and loading into containers or at which (import) LCL cargo is unloaded from containers and delivered to consignees.
Source: International Directory of Trade, 7th ed. Edward G. Hinkelman, 2006.
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The Parting "Wave"
The AIT Ocean Systems team hopes you are enjoying your summer and we thank you for your continued support!
Happy 4th of July!
Preview August 2008 AIT Ocean Newsletter:
A look at BAF = What's Up?
If you have any questions or comments regarding the Ocean eNewsletter,
please contact Kevin Krause from the AIT Ocean Department. |
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